Today, the cost of higher education is increasing at an incredible pace - even so for the colleges in India. The college fee for many courses has gone up to be 5 times of that in the past decade, which is quite concerning for the vast masses of the country. For the top business colleges in India, the fee ranges anywhere from rs 15 lacs to rs 30 lacs, and this is the case for only India. If a student wants to study abroad, the amount gets doubled! 

In such a scenario, it might not be possible for many to be prepared for such a huge financial transaction. Education loans play a major role in such cases. Banks and Non Banking Financial Companies like Clix Capital offer convenient education loans to overcome this difficulty for those in need. There are many education loan providers in India and the best part is that the repayment procedure begins after a few months of completion of the course. Therefore, once the student completes the course and starts working, they can repay the loan from the salary of their new job. 

Now, education loan calculators play an important role in this loan availment procedure. It is a simple online tool that calculates your Equated Monthly Installments (EMI) that have to be transacted every month. With such a tool, it helps borrowers to become sure of their financial capabilities and get a clear idea of the loan they’re looking to avail. 

Here are a few benefits of using Education Loan Calculators: 

1. Fast results: Borrowers can easily make use of this online tool to calculate the EMIs that they will be liable to pay for the tenure and interest rate that is pre-decided. And it takes just a few seconds to determine that. 

2. Application: EMI calculators are based on three factors, namely, the principal amount of the loan, the interest rate, and the tenure of the loan. 

3. Varying Combinations: With the use of an EMI calculator, one can easily map the different interest rates and tenures and look for the ideal combination that best suits their repayment capacity and current financial status. 

4. All Free: Clix Capital’s easy EMI calculation tool is a user friendly education loan calculator that is available to anyone looking for EMI plans, is free of charge, and easy to use. 

Some documents required to avail education loans: 

While the documents vary from one bank or NBFC to another, these are some of the basic documents that almost every financial institution requires from education loan borrowers:

• KYC documents

• Letter of admission 

• Schedule of expenses

• Income tax returns of last 12 months

• Proof of income 

• Past Academic Track Record (such as mark sheets) 

Furthermore, the formula for calculating EMI is shown below: 

EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1] 

Here, P is the principal amount, R is the rate of interest, and N is the number of monthly instalments that are to be made by the borrower every month.