Loans are taken to meet up the immediate necessities of life. You may require a loan for many issues like for medical expenses, expenses regarding any ceremony in your house or expenses for the education of your children. Here for the education of your children, the government has permitted various financial organizations to provide loans to the needful people. It is an unsecured long term loan which may extend for a long time. The education loans that are given by the government organizations pose some relief in terms of rules and regulations than the other types of loans. So it is unique from the other loans and the repayment terms are also different.
Features of a Student Loan
As the education or student loan is different from the other types of loans, some of the salient features are discussed here. The student loans are of two types.
- Domestic loan for education.
- Study abroad loan for education.
The domestic education loans are provided to those who want to study within the country. The study abroad loans are just the opposite of domestic loans. The education loan is again provided for three types of studies, for degree courses, for diploma courses and for studying professional courses. Education loans are given irrespective of the credit score of the applicant. Here you don’t need to keep any security up to a certain amount which is different for different organizations. You need a student loan calculator just to calculate the amount of money you have to pay per month as the EMI.
Student Loan Calculator can Make Your EMI Affordable
When you apply for an education loan, then you opt for a certain amount of time with which you will repay the full amount of the loan along with the interest. This total amount is further divided into small installments by using the student loan calculator which confirms how much you have to pay every month to repay your loan amount. Now using the calculator you can decide how much amount you are going to borrow from them and for how much time. The more the amount will be the more amount you will have to pay per month. But if you take some more time, then your monthly installment will get decreased. But if you will continue the loan for a longer time, then the interest amount will increase and you will have to pay higher amounts all together.
How does the Student Loan Calculator Work?
The student loan calculator works depending on three factors. The amount of loan you take from the organization, the rate of interest they charge for the loan and the tenure for which you will continue the loan is the key look after calculating the amount of EMI. As you fill up all these three boxes, then the calculator calculates the total amount of interest that has to be paid for the stipulated time. Then the amount is divided into equal installments and that amount has to be paid by the borrower every month.
Necessary Take Away for the Student Loan Approval
As the government banks don’t look at the credit score while approving a student loan, so they verify the other documents very well.
- The Income status of the applicant, the tax returns for the previous year, the salary slip from the company.
- Bank balance and transaction status of the last 2 quarters.
- Mark sheet of the last examination that the applicant has qualified along with the admit card.
- The prospectus of the institution where the education program is going to be pursued along with the status of the affiliating body.
- Fee structure along with the admission receipt copy.