Many students finance their studies with loans as the cost of higher education has skyrocketed. Balancing student loan debt with other financial obligations, part-time work and coursework can be challenging. In such a situation, an EMI calculator can prove to be helpful.
With the help of an EMI calculator, the students can manage their education debts and prepare effective budgets for themselves. So, let’s take a look at the important role that EMI calculators play in helping students manage their personal loans.
What are personal loans?
You can withdraw an amount for debt payments, weddings, home improvements, school fees or even unexpected expenses with personal loans also known as an unsecured loan. Personal loans are available to individuals without collateralized assets because they do not require collateral compared to other secured loans. You repay money monthly or regularly over a period of time from the borrowed money, along with adding interest.
What is an EMI Calculator?
An EMI calculator is a simple yet effective online tool for understanding and managing loan repayments. The calculator quickly calculates the fixed monthly payment required to repay the loan within the allotted time by entering key information such as the loan amount, interest rate and loan term.
A related feature of various EMI calculators is that they offer an amortization schedule where each monthly payment has a principal component and an interest component.
Tips for students to pay off their personal loan faster
1. Choose the best EMI plan: Major lenders offer flexible EMI plans. Choose an easily affordable repayment program so that there are no chances of default while paying your EMIs. If you pay according to an optimal plan, you will easily get relief from timely student loan debt.
2. Pay more than the minimum EMI: Try to pay more than the minimum EMI, which will reduce the payback period several times and save you a significant amount in interest overall. It doesn’t matter whether you get a raise, a bonus or a salary increase.
3. Make use of employer support: Many employers offer programs to help employees manage student loan debt. Ask your employer if they have any internal loan offers or repayment assistance that can help you pay off your student debt faster.
4. Consider refinancing: Consolidating or refinancing your student loans may be a good option for you if you want lower interest rates. You may have options for cheaper rates if you have some work experience after graduation, which can accelerate your loan payments.
An EMI calculator eases the tension associated with debt management, allows you to manage your budget effectively and gives you the clarity that enables you to make smart financial decisions. Always keep in mind that personal loans are not the solution to every financial problem as they come with higher interest rates and can lead to you falling into a debt trap.
(Note: Taking out a loan comes with its own risks, so caution is advised)
