Education Loan EMI Calculator - Calculate Education Loan EMI in India

Education Loan EMI Calculator

Every education loan applicant needs an education loan EMI calculator to evaluate and manage the monthly finances. The primary purpose is to calculate the EMI for the loan repayment.

What is an education loan EMI?

When you take an education loan, the monthly repayment you make as an instalment over a certain tenure is the education loan EMI. It comprises the principal amount and the interest rate.

What is an Education Loan EMI Calculator?

The education loan EMI calculator is an online, simplified tool that dissects the monthly EMI to be payable for a particular loan amount. You will need to choose the tenure and interest rate charged by the bank along with the loan amount. The output result shown after submitting them will be the EMI.

How does an education loan EMI calculator work?

An education loan EMI calculator computes the EMI using your input values and a mathematical formula. It delivers results in a trice, and so people prefer it over doing the manual calculation. To calculate
E = P x R x (1 + R) N] / [(1 + R) N-1]
P is the principal amount.
R is the interest rate.
N is the length of service.

Why should you use an education loan EMI calculator?

The education loan EMI calculator is extremely helpful for students who want to make an informed financial decision without putting a burden on themselves. Using the calculator makes it easy to plan your monthly budget and expenses. So, you can choose a comfortable EMI plan based on your loan requirement, tenure, and charged an interest rate. It will further help you to pursue your studies without feeling any financial hardship

Benefits of Using the Education Loan EMI Calculator

Simple to Use

With the education loan EMI calculator, there is no need for human intervention in calculating EMI. All you need to do is just enter a few details like the loan amount, tenure, and interest rate. The calculator does the remaining work without any need for mental thinking or the use of spreadsheets.

Get Accurate Results

It functions with the help of algorithms that are designed to provide to-the-point results. You might be feeling confident that you can calculate accurate results too. But, there's always a possibility of error, which you can avoid by using the calculator.

Time-Saving

How long will it take you to calculate the EMI with pen and paper? No matter how smart you are, the least amount of time it will take is 5-10 minutes. On the other hand, the education loan EMI calculator can do the same in a second.

Experiment With Values

You can do as many calculations as you want without getting any errors or wasting time. Keep changing the values to get the EMI results that feel suitable for you.

Decision Making

Financial decision-making is tough for any individual, but with the right tool in hand, you can make an informed decision. An education loan EMI calculator can help you decide what loan amount or EMI would be best to take for continuing your education.

Free of cost

You have full freedom to use the education loan EMI calculator without any need to pay money.

Factors to Consider Before Choosing an Education Loan

Consider the following factors before you decide to take the education loan:

• Processing Fee: The loan application may be subject to a processing fee levied by your lending institution. It can be lower than 1% of your principal amount, or perhaps even zero, depending on the institution. This is not taken into account by the education loan EMI calculator.
• Repayments: There are multiple repayment options that a student can choose from. You can do this at the initial stages of EMI payment or pay interest on the principal amount even before the beginning of EMI.
• What affects your education loan interest rate?
• One of the major determinants of the interest rate on your borrowed loan amount is your academic record.
• The reputation of a college or university can get your loan approved quickly because it provides job placement opportunities. It ensures that your repayment potential is high and that you can pay off the loan on time.
• A job-oriented course with promising scope will increase your chances of getting a loan. It will also keep interest rates low.
• Other factors like the country's economic condition can have an effect on your education loan interest rate too.

FAQs

1. What if I don't use an education loan EMI calculator? 

Be prepared for the debt trap because you are unaware of your repayment capacity. You will find it hard to budget and do your financial planning.

2. What to do when I have no idea about the processing fee?

Your bank can tell you more about this, or you can read its documentation to learn about the processing fee before applying for the education loan.

3. What happens if I miss an EMI?

Missing an EMI can lead to a penalty charge of 2% every month.

4. Is the education loan eligible for a tax deduction?

Students can claim a deduction for the interest rate on the borrowed loan amount to pursue higher education with taxable income under the 80E section of the IT Act.

5. Who is eligible to avail of an education loan?

You have to meet the following eligibility criteria for availing of an education loan that is common in many banks:

• Should be an Indian citizen.
• Age of joint applicant / co-borrower / guarantor should be 
• minimum 21 years at the time of loan origination and maximum
• age at the time of loan maturity can be 70 years.
• Minimum marks should not be less than 50% (can vary from bank to bank)
• Should join a reputed university or college.
• Co-applicant should be earning well.

6. What does the education loan cover?

The education loan helps you manage tuition fees, examination fees, books, and accommodation expenses.

7. Do I need a co-applicant for an education loan?

The primary education loan applicant must bring a co-applicant for an education loan.

8. Is there any option to preclude the loan?

Yes, many banks provide you with such an option. Ask your lending institution about the rules regarding loan preclosure.