The Education loan EMI or Equated Monthly Installments can help an applicant to know how much EMI the borrower has to pay on their principal loan amount. EMI is made up of two components that are principal amount and rate of interest. An applicant doesn’t need to repay the EMI on the education loan from the first month, it can be payable even after the completion of the education course. The amount of the loan is fixed throughout the loan the tenure of the education loan. It is the total amount that the borrower has to pay every month till the repayment of the complete education loan. An education loan can be provided by Banks, financial institutions, or NBFCs and give your child a valuable education in India or abroad. The loan is available for several courses such as engineering, management, medical, etc. The loan includes the cost of books, tuition fees, equipment, laptop, hostel charges, examination fees, library subscription, etc.
The education loan EMI calculator is a replica, which shows the amount of EMIs for education loans that the borrower must have to pay to the lenders every month. The amount of EMI will depend on the loan amount that you have borrowed. An applicant has to enter the principal loan amount of the education loan, rate of interest, and the tenure of the loan, then the EMI calculator will show the accurate amount of EMI within a second.
Education loan EMI calculator is an online tool that evaluates the number of monthly installment payments to the bank. To calculate the monthly EMI loan amount. The borrower has to use the sliders and drag the values for the rate of interest (R), principal loan amount (P), and loan tenure (N).
Given below are the steps to calculate the EMI amount of education loan: -
To select the loan amount, drag the slider.
Then choose the loan tenure in the number of months.
After that, use the slider to select the rate of interest.
The education loan EMI calculator shows you the exact amount of EMI which has to be paid every month.
EMI = PV×i×[(1+i)n(1+i)n?1]
Where, i = Rate of Interest
PV = Loan amount
n = Tenure (years or months)
If the borrower takes an education loan of Rs. 15 lakhs with an average interest rate of 9.75% for 5 years, then what will be the EMI:
|Tenure (in no. Of months)||60|
Easily Accessible – It is quite easy and simple to use and is available online. The calculation is based on the three factors (loan amount, interest rate, and loan tenure).
Quick processing – Evaluate the EMI for an education loan for a particular rate of interest, and tenure within a few seconds.
Free of cost – For using the EMI calculator the user does not need to pay anything.
Saves time – Any complex calculation should be evaluated within a couple of seconds which saves a lot of time and it can be used anytime, and anywhere.
There are various factors that affect the calculation of EMI for education loans. As EMI has three components – principal amount, interest rate, and loan tenure, any change in any of these factors might change in the result of the amount of EMI.
The borrower should have completed secondary higher-level schooling.
The borrower must have his 10th, 12th, and graduation mark sheets.
The lenders need more documents like the admission letter of the institution.
An applicant should be a citizen of India.
Income documentation of co-applicant such as Income Tax Return proof (ITR), or salary slips.
The Fee Structure of the institution is required.
Lenders also audit if the institution is properly recognized by the authority in India or in abroad.
According to RBI (Reserve Bank of India), there is no restriction on the age criteria.
Financeseva offers you the benefits for evaluate an EMI amount for the education loan.
Also read: - Education Loan in India - All you Need to Know About