Everything you need to know about education loan interest calculations.

1. Everything you need to know about education loan interest calculations.

2. Presentation outline • I. Introduction • II. What is the current education loan interest rate? • III.How to get lower interest rates? • IV.How can I get accurate education loan interest calculations? • V. You can reduce your interest amount without lowering your interest rates. • VI. Social Links

3. INTRODUCTION Interest rates are probably one of the most important factors for students looking to borrow money for their education. Not without reason – the interest rate of the loan is like a price tag – which is the first thing we check when we buy most other goods. Keeping this in mind, the follow article will go over some important pointers related to education loan interest calculations that will help you tackle to cost of your loan with ease.

4. What is the current education loan interest rate? Currently, education loan interest rates range from 10% to 16%. However, the interest rate applicable on your loan will depend on several factors such as your choice of lender, the amount of money you are borrowing, your loan worthiness, your co-borrower’s financial record, the course you are pursuing, its job prospects, etc.

5. How to get lower interest rates? This is one of the most common questions amongst student borrowers. After all, who doesn’t want the lucrative savings of a lowered interest rate! And surprisingly, getting lower rates is actually quite simple. You can enjoy better rates, simply by virtue of an excellent academic record. You could also lower your education loan interest rates by adding more co-borrowers. It will be further helpful if these co-borrowers have an income source of their own and come from strong financial backgrounds.

6. How can I get accurate education loan interest calculations? That’s simple – just use an education loan EMI calculator. It will tell you the EMI amount for every month, along with the break up between your principal repayment amount and the interest amount for each month. It should also provide a total interest payable amount.

7. You can reduce your interest amount without lowering your interest rates. That’s right; a lower interest outgo is not all about a lower interest rate. For instance, prepaying your loan should help you enjoy lower interest payments. This is because, when you prepay your loan, the interest rate is calculated on a lower principal amount. This automatically means lowered interest outgo. Prepaying your loan also helps you get out of debt quicker. Therefore, if you run into any windfall gains such as bonuses or appraisals at work, it would be wise to divert these funds towards the prepayment of your education loans rather than splurge it on some material things.

8. Generally speaking, public sector banks have lower interest rates. However, they also have stricter loan specifications that give you less flexibility. On other hand, non-banking finance companies might have slightly higher interest rates, but they will give you numerous avenues to lower your interest rate. Besides interest rates, you should also look into the processing fees of the loan and the various other charges that may be applicable. These things can add-up and increase the overall cost of the loan as well. Related Blog:- Here’s 3 lesser-known advantages of taking an education loan

9. Social links Facebook:- https://www.facebook.com/AvanseEducationLoan/ Twitter:- https://twitter.com/avanseeduloan YouTube:- https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug Instagram:- https://www.instagram.com/avansefinancialservices/