Study Loan
A Study Loan is a type of loan for the students to help them pay for their education and its related fees such as books, supplies, tuition and the cost of the living expenses during the time of education. A secured study loan can be obtained by banks, while NBFCs provides an unsecured study loan. You can use a study loan calculator to calculate the EMI’s on your study loan.
Study Loan Features
A Study Loan can be obtained by a candidate for studying in India as well as abroad.
- Interest Rates – Study Loan has substantially lower interest rates. However, the same may differ from banks and NBFCs. As NBFCs tend to charge higher interest rates.
- Repayment Tenure – Repayment Tenure can go for a maximum of 5-7 years from the time of disbursal of the loan. In exceptional cases, if the student fails to complete the course within the recorded time, a maximum of 2 years is permitted.
- Variation based on Land- Study Loan interest rates, repayment tenure changes from country to country. While it may be simple in countries with lenient laws, it will vastly differ in countries with strict laws.
- Negotiation of the loan – If a student faces trouble making the payments in time, they can negotiate their study loan payoff with the lender and settle for less than they have to pay back.
Study Loan Calculator
The Study Loan Calculator can help you determine the feasibility of the loan. It is used to specifically understand the EMI payouts on a loan so that the borrower can decide which loan they should buy. As the borrower is the student himself, the instalments are to be paid back by the students once they complete their studies. To ensure the loan does not place a burden on the student in the early stages of his career, a study loan calculator might come as great guidance for the candidate.
There are numerous tools available online to calculate the EMI of the Study Loan. EMI is known as the Equated Monthly Installment. EMI amount is a fixed amount that must be paid every month by the loan candidate till the end of the tenure of the loan. Further, the EMI amount is made up of two parts, the applicable interest and the principal amount. The ratio of both the parts changes as the applicant proceed towards the end of the loan tenure. The formula to manually calculate the Education Loan is explained below.
EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n – 1]
To calculate loan EMIs, you need to know the following abbreviations:
P = Principal loan amount
R = Rate of interest applicable
N = Number of instalments (or the loan tenure, in months)
Top Banks That Offer Study Loan in India
Top Banks like Oriental Bank of Commerce, Union Bank, Axis Bank, HDFC Bank, State Bank of India, Punjab National Bank, Andhra Bank and almost all leading private and public sector banks have various study loans schemes for the eligible candidates.
Study Loan Calculator – FAQs
✅ What is an EMI?
EMI is known as the Equated Monthly Installment. EMI amount is a fixed amount that must be paid every month by the loan candidate till the end of the tenure of the loan. Further, the EMI amount is made up of two parts, the applicable interest and the principal amount.
✅ What things are to be considered while buying a Study Loan?
- Processing Fee: Some banks ask for an additional fee as processing charges for the study loan. The same has to be submitted while submitting the application to the lender, which has to be provided by the applicant himself or the co-applicant.
- Prepayment of Study Loan: Students have the option to keep paying interest on the principal amount before the EMIs are due to begin by prepaying the loan or making a part of the loan paid.
It is always a good idea to inquire about the processing fee and prepayment of the study loan with the bank or lender while purchasing the loan.
✅ What are the benefits of using a Study Loan Calculator?
A Study Loan Calculator gives quick results to the applicants to know the worthiness of the loan. A Study Loan Calculator tool is simple and easy to use and has varying combinations where applicants can put their input like different interest rates, tenures. It is free to use.
