Why it’s a must to use an education loan eligibility calculator.

Ever heard of an education loan eligibility calculator? If you haven’t, you aren’t alone. There are probably thousands of students who have no clue what these tools are, and go through the entire education loan journey without every using one. However, there are a few students who wish they used one of these calculators before applying.

Why? Well, because, these calculators tell you the loan amount you are eligible for. If you apply without using one of these calculators, you could apply for a loan amount higher than your eligibility. This could result in the disappointment of a rejected application. Moreover, it could also result in a lost processing fee – this could be a huge loss considering the fact that processing fee is usually 1 or 2 percent of your loan amount.

What does the calculator do?

An education loan eligibility calculator tells you the loan amount you are eligible for. It does this by factoring in your monthly income & expenses. Some calculators will add interest rate of the loan to provide more accurate computations. Just give the calculator these details and hit enter – it should provide you a ball park eligibility amount before you have time to blink!

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Educational Loan Calculator




Where do I find these calculators?

More lenders and aggregator websites should have an Education Loan Eligibility Calculator that you can use. The nest part is that these tools are free to use. You don’t need to pay any fees and in the best cases, you won’t even have to provide your personal details to use these calculators. It is best you use the calculator available on your lender’s website – you can then quote the eligibility amount provided when applying for your loan.

What happens if I don’t use this calculator?

Well, you are applying blindly. You could be applying for a loan amount that’s below your eligibility. This is alright if you are happy with the loan amount you’ve applied for. However, not using a calculator becomes a problem when you apply for loan amounts beyond your repayment capacity. As mentioned earlier, this could result in rejected applications and loss of processing fees. So save yourself from the disappointment, the lost processing fee and the hassles of reapplying – just use an eligibility calculator before you sign your name along the dotted line.

Are there other such calculators?

Besides the education loan eligibility calculator, you could also use the Education Loan EMI Calculator & the repayment calculator before applying. The EMI calculator provides a repayment break-up you can bank to chalk-out your ‘get out of debt’ plans. They calculate every single EMI payable towards your education loan so you can budget your finances better and breeze through the repayments. The repayment calculator helps you find ways to repay your education loan before time, making it another must us tool before applying for an education loan.

The education loan eligibility calculator is a must use before you make any concrete decisions regarding your student loan. Along with it, you should also make it a point to use the other calculators available. In combination, they make it extremely easy to plot a comfortable path out of debt and into a bright future.

Good luck and all the best!