Tuesday, 24 July 2018

The importance of education in India

India has established itself as one of the world’s leading economic and technological hub. Hence, there are a lot of companies which are keen to invest and thus rake in the bucks. However, these MNCs (multi-national companies) only want to hire the people who are well-qualified and educated. Thus, the ever-increasing demand for a degree from a highly established institute has caused the study expenses to go through the roof. Hence, it has become almost impossible for the parents to support their child’s education even after exhausting their savings; for which they have worked throughout their life. But unlike the earlier times, there are a number of banks and NBFCs (non-banking financial companies) which offer education loan to assist students in their studies.
The study loans have proved to be a boon for the meritorious students lacking the financial capability. These loans take care of all the different expenses induced by the students during their educational course. The expenses which are taken care off by these loans include the college fees, tuition fees, travel expenses, hostel fees, and also the miscellaneous expenses incurred by the students. Thus, the students can take care of their own study expenses with the help of education loans. The loans offered by these banks and NBFCs (non-banking financial companies) are much lower when compared with the interest rates offered by the traditional financiers. The traditional financiers in the past would charge exorbitant interest rates and would ask for high collateral; thus making them a bad choice.
Importance of opting for study loans are:
·         These loans are offered at lower interest rates for meritorious students and for women; in order to provide them with equal chances as their male peers.
·         The students can acquire education loans for pursuing a course of their choice in both domestic as well as foreign universities. The various specialization courses offered by them are in engineering, medicine, architecture, culinary, literature and fine arts, etc.
·         The students can make use of co-borrower facility and can acquire a higher loan amount. However, the co-signer will be the primary debtor and he or she should be an earning citizen of India with a bank account in any Indian bank; with a cheque writing facility.
·         The easy repayment options with longer tenures have presented students with the opportunity to plan out their future repayments in advance and thus live a stress-free life. Thus, education loans are tailor-made in order to cater to the need of the people.
A few tips related to study loans:
·         Tenure: There are a lot of people who take loans with longer tenure because they feel that EMIs (equated monthly installments) are low. However, in reality, they are compensating on their interest rates in order to procure longer tenure loans. This is because, the longer the tenure period, the higher the interest rates on that loan. Thus, if one is earning well then he or she must choose to opt for a loan with a shorter tenure period.
Moratorium period: This is the time period which is a sort of levy given by the banks to the students in order to find a job. This period for an education loan may be anywhere between 6 months to a year after the course completion. However, the interest rates on the outstanding amount are still piling up, hence, it is best to pay off those interest rates while one still can.

Tuesday, 12 June 2018

Use These 3 Education Loan Calculators Before Applying For Your Loan.

Education loancalculator are a must use for anyone thinking of applying for a student loan. They ensure you are better prepared to handle the debt and help you create plans to successfully repay the loan, even before you apply. So if you are thinking of going in for a student loan, you must try using these 3 student loan calculators before you sign your name on the application form.

1. Education loan EMI calculator.

This is one of the most useful education loan calculator. They provide you with estimate of your repayment schedule, right from the very first EMI to the very last one and knowing your EMI can help you in many ways. Firstly, you can help create better financial plans to cover this cost. You can adjust your monthly obligations to accommodate this cost.
Secondly, you can tell if the loan amount you are planning to borrow is within you financial capacity. If the EMI is too high, you cannot afford to borrow the loan amount. The calculator can then help you find out the right loan amount too, just keep reducing the loan amount entered until the EMI amount is something you can handle.

2. Education loan calculators that determine eligibility.

Better known as education loan eligibility calculators, these calculators help you apply for the right loan amount and ensure your loans are approved quickly. All this calculator needs is your monthly income, obligations, the interest rate and tenure of the loan. After you’ve entered in these details, just hit enter and within seconds the calculator will compute a rough eligibility amount. You can then apply for the loan accordingly.

Not using this calculator could result in you applying for the wrong loan amount and your loan application being rejected. This could cost you dearly as the processing fee for student loans can be as much as 2% of the loan amount and if your application is rejected, this amount is not refunded to you.

3. Loan repayment calculators.

Another very handy education calculator is the loan repayment calculator. This will help you compute the savings in hypothetical situations and give you a better idea of you can prepay you student loan. You’ll have to start by inputting the basic details of your student loan such as the current balance of your loan, the interest rate and the months you have to repay the loan.

Next you can choose to calculate the savings and repayment times if you decide to pay an additional amount every month or with one large extra payment. You can also see how much your EMI amount would be if you want to shorten your loan tenure by a certain amount of months.

These education loan calculators are free to use, super simple to operate and take nothing more than a few minutes to find, use and get results. So if you’ve got an education loan on your mind, make sure you try these simple online tools before taking any further steps.

Good luck, all the best and study hard!