Question 1

What is the EMI on my education loan?

Accepted Answer

Leap Finance’s student loan calculator is a user-friendly online tool that helps you calculate the EMI to be accrued on the amount of money you borrow to fund the quality education you have always dreamt of. We employ a quick, simple, and transparent approach to providing you with all the information you need to assess whether you want to put in your energies into securing an education loan with us.In fact, we send you all the details you need to know about the loan amount immediately after you submit your online application form (which takes only 10 mins)!

Question 2

How to use the Education Loan EMI Calculator?

Accepted Answer

Step 1: Choose the principal amount between 15000USD and 100000 USD.Step 2: Choose the Interest Rate between 8.25% and 10.25%.Step 3: Choose the tenure of repayment of the loan between 7 years to 10 years.Step 4: Select the duration of your course.Step 5: Viola! You see the exact total amount you have to repay, and the EMI amount you can pay off every month.Leap Finance allows you to start repaying with a token amount of 50USD per month which allows you to build a credit history in a new country.

Question 3

What are the repayment options of an education loan?

Accepted Answer

Pre EMIThese are the payments made towards the interest aspect of the education loan disbursed in parts.Let’s assume you borrowed 50,000 USD and the bank or NBFC is paying you 10,000USD each at every stage that you make the fee payment in your academic year. As a borrower, you can begin making interest payments on this amount as soon as it is disbursed to you. Pre EMIs provide an economic alternative to paying off the whole EMI - principal +interest. Since with Pre EMIs, you’re only required to pay off the interest amount. When you are a student and paying off EMIs, every penny counts! This way, when the actual EMIs begin, you will have to pay a lesser amount as the interest on the principal amount has already been paid off.Full EMIsFull EMIs are simple.You pay the interest + principal every month only after the full loan amount has been sent to you. After you’ve finished studying and you have got a job, you can pay off your EMIs comfortably. However, because the EMI amount remains the same throughout the loan term, if you are just starting out, the payment can eat into your disposable income. Even if you are someone who has saved money from before, the pressure is less, but only slightly.

Question 4

How to compare loan offers?

Accepted Answer

To compare loan offers by different lenders, an online EMI calculator can be indeed helpful. You can choose varying combinations on different platforms to compare the terms stated by the lender.For example, if you want to borrow 50,000 USD for 10 years at a rate of interest that is comfortable for you: You’ll go to the banks, NBFC, or private lender’s website and input your desired combination. Then you will play around with the amount, to see which combination works for you. Then you will do the same process with other lenders, before finally comparing final loan offers from each.You will choose the lender that has the most flexible terms, has the least rate of interest, allows you to develop good credit history in the new country, and makes you eligible for tax rebates.