Loading...
Category

Finance

Home >> Blog >> EMI Calculator for Education Loan: Formula and Apply Online

EMI Calculator for Education Loan: Formula and Apply Online

  


EMI Calculator for Education Loan

Education loans are a vital resource for students seeking to pursue higher education, as they can ease the financial burden of tuition fees, living expenses, and other related costs. However, one common concern among borrowers is understanding when their education loan EMI (Equated Monthly Installment) begins and how it's calculated. In this blog, we'll address these questions and more to help you manage your education loan efficiently.

 

When Does Education Loan EMI Start?

The first question on many students' minds is, "When does my education loan EMI start?" Typically, education loan EMI payments commence after you complete your course or get employed, whichever comes first. This period is known as the moratorium period, during which you don't need to repay the loan principal. However, interest may accrue during this time, depending on the type of loan and the terms set by your lender.

 

How Is EMI Calculated for Education Loan?

The calculation of education loan EMIs depends on several factors, including the loan amount, interest rate, and repayment tenure. Here's a simplified formula for EMI calculation:

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

Where:

EMI = Equated Monthly Installment
P = Principal loan amount
R = Monthly interest rate (Annual rate divided by 12 months)
N = Loan tenure in months
To make this calculation easier, many lenders provide online EMI calculators. Let's take a closer look at these tools.

 

Instant EMI Calculator for Education Loan

Calculating your education loan EMI manually can be a complex task, considering the various factors involved. Fortunately, there are online EMI calculators available on the websites of most financial institutions and lending platforms. These tools allow you to input your loan amount, interest rate, and repayment tenure to instantly determine your monthly EMI.

Here's how to use an EMI calculator for an education loan:

Visit the lender's website or a reliable financial portal that offers an EMI calculator.

Enter the loan amount you wish to borrow (e.g., 10 lakhs).

Input the annual interest rate offered by the lender (typically, this rate ranges from 7% to 12%).

Specify the loan tenure in months (e.g., 120 months for a 10-year tenure).

Click the "Calculate" or "Get EMI" button.

The tool will then display your monthly EMI, total interest payable, and the overall cost of the loan. This information can help you make an informed decision about your education loan.

 

What Will Be the EMI for a 10 Lakh Education Loan?

Suppose you are considering borrowing a 10 lakh education loan with an annual interest rate of 9%. Using the EMI formula mentioned earlier or an online EMI calculator, you can quickly determine your monthly EMI.

In this case, the monthly EMI for a 10 lakh education loan with a 9% interest rate and a 120-month (10-year) tenure would be approximately 12,790 INR. Keep in mind that this is just an estimate, and actual EMI amounts may vary based on your lender's policies and any applicable fees.

 

Conclusion

Understanding when your education loan EMI starts and how it's calculated is crucial for successful loan management. Utilizing an instant EMI calculator for education loans can simplify the process and provide you with valuable insights into your repayment journey. Always remember to read your loan agreement carefully and consult with your lender to clarify any doubts regarding your education loan EMIs. With the right knowledge and planning, you can pursue your education dreams without unnecessary financial stress.

 


Frequently Asked Questions

+

Using an education loan EMI calculator allows you to plan your finances effectively. It helps you understand the monthly repayment commitment, enabling you to make informed decisions regarding loan amounts and repayment durations. This tool empowers you to align your loan with your budget and financial goals.

+

To use the EMI calculator, you typically need to input the loan amount, interest rate, and loan tenure. Some calculators might also ask for additional details such as processing fees or any prepayments made.

+

Yes, an EMI calculator is versatile and can be used for various types of education loans, including those for undergraduate and postgraduate courses, vocational training, and professional courses.

+

The results are generally accurate as they are based on the mathematical formula used for loan amortization. However, it's essential to remember that the final EMI may vary based on the actual terms and conditions provided by the lending institution.



Liked What You Just Read? Share this Post:




Viewer's Thoughts

Any Question or Suggestion

Post your Thoughts


Finance

Related Blogs

Namita Thapar: Executive Director Emcure & Shark Tank Judge

Finance | 26-02- 2024

Namita Thapar: Executive Direc...

Discover the inspiring journey of Namita Thapar, Executive Director of Emcure & Shark Tank judge. Her impactful role in ...

Continue Reading
Top 5 Highest Dividend Paying Stocks in India 2024

Finance | 25-02- 2024

Top 5 Highest Dividend Paying ...

Explore the Top 5 Highest Dividend Paying Stocks in India 2024 with a complete analysis of whether to go for Dividend yi...

Continue Reading
How to close Demat Account in 2 Min

Finance | 22-02- 2024

How to Close Demat Account in ...

Saerch easy steps to close your Demat account hassle-free. Say goodbye to unnecessary charges with our comprehensive gui...

Continue Reading
SEBI's Guidelines to Save You from Broker's Technical Glitch India

Finance | 20-02- 2024

SEBI's Guidelines to Save You ...

Facing stock market glitches? SEBI's resolution process offers hope. Learn how to navigate broker issues effectively in ...

Continue Reading
Impact of RBI Monetary Policy 2024

Finance | 14-02- 2024

Impact of RBI Monetary Policy ...

RBI Monetary Policy 2024 is out today with some interesting news about repo rates, economic health & Understand its imp...

Continue Reading
Will stock market crash in 2024?  JP Morgan, Robert Kiyosaki

Finance | 13-02- 2024

Will Stock Market Crash in 202...

Will stock market crash in 2024?, JP Morgan on stock market, Robert Kiyosaki on stock market, JP Morgan, Robert Kiyosaki...

Continue Reading
to Get Free Strategy worth Rs.15000