Pursuing higher studies abroad is not just exciting but also financially challenging. Education loans provide significant support to alleviate the financial burdens for students with higher academic aspirations. A proper financial plan can save a significant amount of money and help avoid post-loan struggles for students.

Instead of relying on the bank’s brochures and word-of-mouth calculations, students can use digital tools to calculate loan amounts, EMIs, exchange rates, and more. This helps them plan their finances effectively and prepares them for the future.

In this blog, we will explore the top 5 tools students can use and calculate the eligible loan amount, EMI calculated on that, etc., that help students in calculating different aspects of education loans and help them make informed choices.

Why Loan Calculators are important before applying for an Education Loan

Loan calculators are important, as these tools help students and parents make informed choices about finances related to education loans. These tools are used to measure and calculate the important aspects of a loan.

These calculators help students assess the affordability, help plan EMIs, prepare students for timely repayment, etc With the help of these calculators, students can calculate their loan amount and the interest incurred on it.

In essence, these calculators help students to outline all the finances related to education loans, which gives accuracy and saves a lot of time.

Obtaining an education loan to fund your studies can be quite challenging, with different lenders offering varying options. Contact WeMakeScholars, an organisation partnered with over 15 public and private lenders. When you apply for an education loan through us, our experienced team will help you find the most suitable loan for your higher studies. Request a callback today to contact our team.

Five essential tools that help students in making Calculations related to Education loans

  1. Education loan EMI calculator
  2. INR-USD Calculator
  3. Loan Take-over Calculator
  4. Tax Rebate Calculator
  5. Loan Eligibility Checker

Let us understand in detail how these loan calculators help students in managing their finances and why using the right tools can significantly impact the education loan journey.

Education Loan EMI Calculator

  • Education loan EMI(Equated Monthly EMI) is a tool used to calculate the estimated monthly loan repayment amount for an Education loan. This helps students understand how much they need to pay each month and plan their budget accordingly. 
  • The EMI calculator is also used to compare different loan options offered by lenders, giving inputs on interest rates, loan amount, and tenure. With the calculated EMI student can decide if the loan is in budget and is affordable or not. This can help students make informed decisions if they can proceed with the loan.
  • Students can also Once students understand the EMIs in advance, they can prepare and plan their repayment schedule. Use our Education loan EMI calculator and plan your finances accordingly.

INR-USD Calculator

  • This is one of the important tools students must use while planning for abroad education and applying for education loans. The INR-USD calculator is used to compare the USD loan to INR across various parameters and helps in figuring out the actual difference in the repayment.
  • This tool helps in converting the tuition fees, living expenses, and other costs quoted in USD to Indian rupees, showing the real amount that is required for abroad studies.
  • One of the important benefits is that students can understand how currency fluctuations can impact the total loan amount, expenses, etc., during the study period.
  • The INR-USD calculator is also used to compare the lenders that offer better exchange rates and help in choosing the best possible option. 
  • This tool is also used to check the processing fee, interest rate, and forex charges, and compare them with the available lenders like public banks, private banks, and NBFCS. This often makes students to take informed decisions of education loans.

Loan Take-Over Calculator

  • The Loan Take-Over Calculator is an important tool for students, especially if the students have completed the course and are starting repayment.
  • This tool is used to assess whether students transferring the education loan from the existing lender to another could save them on interest rates on repayment terms.
  • This calculator shows how much students can save on the remaining loan amount if they transfer the loan to another lender with lower interest rates.
  • This tool gives details even on the total charges, including processing fees, foreclosure charges, and other costs involved in transferring an education loan from one lender to the other. This make students decide if they get benefitted with the loan transfer or not.
  • This calculator helps in adjusting the loan tenure with the new lender that suits the repayment capacity of the student.

Tax Rebate Calculator

  • The Tax Rebate Calculator is one of the best tools to know how much a student can save on education loan tax benefits under Section 80E. This tool estimates the amount of tax that students save by claiming a deduction each year for interest paid on each year.
  • This tool helps students strategically plan their repayment to leverage the benefits of tax for up to 8 years post-course completion and start earning.
  • This calculator helps students compare tax benefits on different loan options and make students take the most tax-effective decision.
  • This tool helps students keep track of the interest that is being paid, which indeed makes it easier to file an ITR.

Loan Eligibility Checker

  • This is the first and important tool that students must use to check if they are eligible for an education loan, and it provides the approximate loan amount that the students are eligible for.
  • This tool helps students check if they even qualify before applying for an education, which avoids unnecessary rejection and disappointment.
  • Based on inputs such as the desired loan amount, annual income, co-applicant income, course, university, etc., students can get an idea of the maximum loan amount that they can get.
  • This calculator helps students prepare with the necessary documents, which avoids delay in the loan process. 
  • Thus, these tools can save a lot of time for students and increase the chances of loan approval.

Conclusion

Well begun is half done. Thorough research and pre-prep are always the game changers when it comes to education loans. Students checking the loan eligibility, calculating the EMIs in advance, getting to know how much they can save on tax, etc., could help students make informed decisions on Education loans.

In this blog, we have discussed the five important tools that students must use before applying for an education loan. This will not only improve the chance of loan approval but alos saves a lot money to students.

Applying for Education loans through WeMakeScholars can ensure fast loan approvals. We have a team of dedicated financial officers who lend support throughout the loan process. Our financial officers will provide end-to-end support and make your education loan process free.