Education Loan EMI Calculator

If you’re a student desiring to complete a degree or looking to get enrolled into a higher institution or University to pursue your higher studies, then you must be looking for an education loan. An education loan is easy to get from various Government or non-government financing institutions, but you need to first check the interest that you have to pay in return for the principal amount of your loan. This is where the Education Loan EMI Calculator comes to serve your purpose.

The Education Loan EMI Calculator is a financial tool created for students and their parents to calculate Equated Monthly Installments (EMIs) on education loans so that students are well informed on the loan size, interest rate, and interest amount that they have decided upon.

How Education Loan EMI Calculator Help You?

The online Education loan EMI calculator can help in numerous ways. Some are described below.

1. Accurate EMI Calculation: It helps determine the monthly EMI for a particular amount when applied for a loan. The student loan EMI calculator has only three inputs, namely- loan amount, rate of interest, and repayment tenure. The loan-specific EMIs can be derived simply with the help of the defined input via the calculator.

2. Budget Planning: The most vital thing to be managed when it comes to the repayment of educational loans is to plan ahead with its money. The loan EMI Calculator is used to analyze different possibilities as to the combinations of loan amount, interest rates, and repayment tenures.

Thus, in turn enabling to calculation of the EMI which would easily adjust into monthly budgeting without hampering the ability to meet other financial responsibilities. 

3. Comparing Loan Options: It helps the student education loan calculator to compare as quickly and effectively as possible. By entering the details of different loans into the calculator, one can easily calculate EMIs against others. These accounts will have a direct bearing on his monthly payments, whether it be on interest, the amount of the loan, or tenure.

It will allow you to have an informed decision regarding the loan offering the most favorable terms, and that matches your financial goals.

4. Understand the Interest Outlay: Besides computing your EMI, an education loan EMI calculator goes further to tell you the total amount that would be repaid over the life of the loan. It breaks these amounts down further into principal borrowed, interest paid, and each applicable balance for each EMI. 

This breakdown will help you visualize how the outstanding loan balance becomes small gradually and how much an EMI portion will go toward interest. This information helps you work out your finances and plan a prepayment, which will, in turn, decrease your overall interest burden.

5. Saving Time and Convenience: Another way of saving time and adding convenience to it is to use a study loan EMI calculator. Online calculators are easy to access from anywhere, which lets you consider multiple scenarios of loans without visiting a financial institution.

Since it has a user-friendly interface with input fields that are not complex, even one without any knowledge of finances would have no trouble using the calculator and getting correct results in seconds.

Calculation of Educational Loans EMI

Mentioned below is the formula and an example to show how the EMI of education loans is calculated.

Formula:

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

Where,

P = Principal amount

R = Rate of interest

n = Tenure

Education Loan Interest Rate Calculator

An education loan interest rate calculator often serves as an education EMI calculator, as both give the information on interest rate calculation, interest amount after n years, where n is the tenure, provided the principal is given.