What is an education loan?
Education loan is a kind of advance offered to candidates following post-secondary education in India or overseas. It can be procured to cover a part-time, full-time, or professional course and graduation or PG in engineering, medical, management, hotel management, architecture, etc. The borrowed money can be used to pay for the basic course fee and other related costs, like lodging, exam, and other various expenses.
What is an education loan calculator?
The education loan calculator totals the EMI payable, on the basis of the particulars entered by the user. One will need to put in the loan sum, interest rate, and duration into the calculator, and the automated device will calculate the amount payable by the individual as EMIs.
What all to calculate?
The loan amount here refers to the cash borrowed from the monetary institution. The interest rate is referred to as a percentage charged by the lender on the loan, and tenure is the time chosen to repay the loan with the due interest.
How to use an education loan calculator?
The exact mathematical formula that can be applied to calculate EMIs on education loan is:
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]
- P stands for the principal loan amount,
- R is the interest rate per month and
- N is the number of monthly payments.
The education loan EMI calculator is a contemporary online tool that can assist you, as a prospective education loan applicant to calculate the EMI accrued on your loan. These are known as the equated monthly installments.
To calculate your education loan EMI, click here now.
Benefits of an education loan calculator
- Fast Results – Candidates can effortlessly use this calculator to compute the EMIs that they will be accountable to pay for the predetermined tenure and interest rate that the education loans are offering, in mere seconds.
- Ease – The calculations by means of this EMI adder are built on the applicant providing three key pieces of data i.e. the prime amount of the loan, the related rate of interest, and the loan tenure.
- Variable Combinations – With the educational loan EMI calculator, you can simply keep changing the interest rates and tenures to look for a pair that will allow you to without difficulty repay the principal amount, without putting unnecessary pressure on your funds.
- Unrestricted Usage – The education loan EMI calculator is an accessible loan calculator that is offered to one and all free of charge and is user-friendly.
Calculating the interest:
As a rule of thumb, floating interest rates are a little inexpensive. Fixed rates, popular loans that are accessible are offered with a floating rate of interest have longer repayment periods. Just ensure that you take into account the bank’s interest payment calculations if it is calculated at a day-to-day reducing balance, or on a three-monthly reducing balance.
EMI Calculator: What to enter and where?
The interfaces of education loan EMI calculators are usually planned to offer efficacy with maximum ease. This EMI calculator saves time and is highly scalable. To calculate the interest on an education loan, you just need to enter the following details:
- The principal amount of the loan – In the first section of the education loan EMI calculator, you need to enter the total loan sum that you wish to apply for.
- The rate of interest – In the second section, you need to update the interest rate that is applicable to your educational loan policy.
- The tenure of the loan – Like the earlier steps, you need to enter the tenure that you would wish to opt for your education loan to get the EMI amount payable by you. This could range between 5 to 7 years, but with the number of flexible repayment possibilities, applicants can also choose longer repayment periods, that can go up to 15 years.
On the right side of the calculator, you should be able to notice the education loan EMI that you are responsible to pay with the given combination of loan principal, tenure, and rate of interest.
Additional benefits of the EMI Calculator:
- One can easily customize the details that you update in the educational loan EMI calculator and ask your lender for available possibilities.
- The EMI calculator provides the candidate with the liberty to experiment with the loan options, which in turn helps them in understanding the several configurations available to them.
- EMIs for educational loans can be broadly categorized as the EMI paid during the loan disbursal or the EMI paid back after receiving the loan.
The calculator tells about the pre-EMIs which are payments that are made towards the interest section of the education loan which is disbursed in parts.
- The ratio of each part keeps fluctuating as you progress along with the loan tenure.
Points to note:
- Results obtained from the education loan EMI calculator do not take the processing fees into account.
- It is always a good idea to analyze loan EMIs, using an online EMI calculator, before choosing a particular education loan provider’s offer.
