Educational LoanA smarter way to know your education loan well

Education is the inevitable right of every child. Government and private finance firms understand the need of this valuable resource for children successful life. Therefore, they constantly strive to make their dreams turn into reality with the help of student loans that can aid their higher studies in India or abroad. These education loans are continuously worked upon, revised, customized and tailored to make them available at affordable interest rates and the associated servicing charges. Besides, some leading finance firms offer innovative solutions like no margin money facility, low processing fee costs, flexi-repayment options etc. so that you don’t have to stress too much for your child’s higher education and are able to provide for all their educational needs on time.

While taking a loan the major concern that parents and students have is the repayment of loan. A lot of questions arise in their minds such as how is the loan and interest rate calculated? What is the disbursement amount and processing fee? What will be the EMI? How long will it take to clear of the debt? etc.

Since it’s the amount that you have to repay its important to understand who sets your interest rate, how your interest is calculated, and the fees associated with your loan. So, the longer you take to clear off your debts, higher will be the interest accrued, increasing the amount you will be required to repay. Doing manual calculations is obviously a complex task and often leaves people strangled in tough times. Therefore, private companies or banks come up with education loan calculator that not only give solutions for all your concerns within a quick span of time but also make things rather simple, sorted and transparent for them.

Remember that the loan interest rates are determined by the lender and are based on your credit history and your cosigner, if you have one. The interest rate may be variable or fixed for the life of the loan, depending on the contract that you have signed when you took out the loan.
It would be really good to know that your lender may offer certain benefits that can help lower your interest rate. These may include a benefit for consistent on-time payments or a benefit for enrolling in recurring Automatic Debit from your bank account.

While using education loan calculators there are certain elements that you should be aware of: loan amount stands for the principal amount, tenure is the time frame given to you by the lender to repay the loan, Interest rate is the annual rate the lender will charge on your principal balance until you repay your loan in full and amortization table shows what portion of each loan payment goes toward interest and what portion goes toward the principal balance of your loan.

Education loan calculator is a self-help tool for your independent use. It allows a borrower to understand their loan requirements and then see how much their payment will be depending on the interest and length of the loan. Once a borrower puts in his or her loan details, the amount of interest paid will be displayed. This can be very useful to help see how much you could save by refinancing.

These calculators can help you plan your finances well ahead of the payment dues for loan. Calculations have definitely turned easy and sorted with the help of education loan calculators for parents & students. It generates a sense of transparency and reliability towards finance companies amongst parents and children while taking a suitable loan for higher studies in India or abroad.

Source : http://checkthis.com/educationloanscalculater