How To Use An Education Loan EMI Calculator To Get An Education Loan?

The principal and interest sections of an EMI make up the whole thing. It is the total amount you will pay each month until the full loan repayment loan.

Typically, the education loan EMI is set for the entire loan term. When you first took out the loan, a sizable chunk of your repayment went toward interest. A larger part of the loan’s principal will be added as you make payments.

Use the education loan EMI calculator if you’d rather know the monthly payment you would make toward a student loan before applying.

Education Loan EMI Calculator: How Can It Help You?

Any student will want to know the amount they’re liable to pay as EMI for the entire loan term before applying for an education loan. Knowing the estimated EMI will help you decide the bank and interest rate for your loan.

You may do that and plan your monthly spending as well. You can help yourself with it by using the education loan EMI calculator, like the one from the IDFC FIRST Bank, which is easy to use, quick, allows you to experiment with different options, and is totally free.

How To Use an Education Loan EMI Calculator?

Before applying for the education loan process, calculate your estimated monthly payment to the bank using an EMI calculator. Change the Interest Rate (R), Loan Tenure (N), and Principal Amount (P) using the sliders to compute the EMI payable against the amount you will borrow.

Here are a few steps to compute it:

  • Use the slider to select the education loan amount.
  • Again, use the slider against the loan tenure option to choose the loan’s duration in months.
  • Choose the interest rate by dragging the slider.
  • The calculator displays the total interest paid, the amount due, and the EMI due.
  • Change the input sliders to recalculate your EMI whenever you like.
  • Moving the sliders will instantly compute your EMI.

Calculating Education Loan EMI: What Is The Formula Behind It?

The formula and an illustration for calculating educational loan EMI are provided below. Although an online EMI calculator is a much faster solution, use this as an alternative way to compute your EMI only when you feel like it.

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

Here,

  • P is the principal amount
  • R is the rate of interest
  • n is the loan tenure

Example:

Using an example, let’s better grasp how the EMI on an education loan is computed. If Mr A took out a three-year, Rs. 9 lakh education loan at a standard interest rate of 12%, they would pay the monthly EMI of:

  • P = INR 9 lakhs
  • R = 12/100/12 (converted to months)
  • N = 3 years

EMI = INR 29,893

Final Words

For loan amounts ranging from INR 50,000 to INR 50 lakh, the top Indian banks offer education loans at competitive interest rates. Check your education loan eligibility and fill out an application right away to support your aspirations!