Calculate your EMI in 3 simple steps
The Education Loan EMI calculator gives an estimate, not an exact figure. The results depend on the loan amount, interest rate, and tenure set by each lender.
An Education Loan EMI calculator is a tool that helps you plan your finances and determine how much you need to pay every month for an education loan. It has a simple process to calculate the Monthly Installment (EMI). Using an education loan interest rate calculator, you can see how different interest rates affect your payments.
Now that you know what an education loan EMI calculator is, let's learn how to use this student loan EMI calculator to calculate your EMI?
It is simple to use a student loan calculator to calculate the monthly EMI for your education loan. Follow the below steps:
To use the Propelld education loan EMI calculator, input the following details:
Enter the loan amount. For instance, INR 5,00,000.
Input the loan tenure, such as 60 months (5 years). The tenure can range from 5 to 15 years.
Enter the applicable interest rate for your education loan, e.g., 9%.
Click the submit button to complete the process.
The education loan EMI calculator will shows the following information:
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You can use an education loan EMI calculator to estimate the EMI based on college fees and the interest rate of the bank's education loan. The EMI calculator for education loan tool will help you understand the monthly payments you will make.
You can also manually calculate the EMI of an education loan using a formula. Let’s say you take an education loan of INR 5,00,000 at an 8.5% annual interest rate, to be repaid over five years (60 months).
1. Loan Amount
Start by converting the annual interest rate to a monthly rate. For example, if the interest rate is 8.5%, divide it by 12 to get a monthly rate:
8.5% ÷ 12 = 0.7083% (or 0.007083 in decimal form).
2. Loan Tenure
Convert the loan tenure into months. If the tenure is 5 years, then
5 years = 60 months.
3. Apply Formula
Use the following formula to calculate the EMI:
EMI = [P x R x (1+R)^n] / [(1+R)^n-1]
Where,
Now, input the principal amount, interest rate, and tenure. For example, with a loan amount of INR 5,00,000, an interest rate of 8.5%, and a tenure of 60 months, your monthly EMI will be approximately INR 10,379.18 for the next 5 years.
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Below are few benefits of using a student loan EMI calculator:
The calculator provides quick results after entering information.
It has a simple interface. You just need to enter: loan amount, interest rate, loan tenure, and course duration.
You can modify the inputs to calculate different EMIs and plan your repayment accordingly.
Not only can co-applicants secure a loan for their children, but students can also get a loan using their Aadhaar card. Discover how to get a Student loan on your Aadhar Card—eligibility and interest rate.
Repaying student loans can be challenging for new graduates, especially in a competitive job market. An education loan repayment calculator will help you better understand and manage your loan repayment.
There are several repayment options available:
Candidates can adjust monthly payments based on their income.
Payments will start at lower income and increase as the candidate's income rises.
If you're in a hurry and need an instant education loan without visiting a bank, explore how to Apply for an Instant Student Loan Online.
Many study loan calculators are available online, allowing you to find your EMI by entering your loan details. However, we may not fully understand how banks determine interest rates for education loans.
Most banks in India offer floating interest rates on education loans. This means the interest rate can change over time based on a few key factors:
The base rate is the minimum rate set by the bank. It is the rate at which banks borrow money from the Reserve Bank of India or RBI.
Banks calculate interest rates using Repo Linked Lending Rate (RLLR) or the Marginal Cost of Funds-based Lending Rate (MCLR).
The bank adds charges based on factors like the borrower’s credit.
When the RBI changes the repo rate (usually every two months), the base rate and the interest on the loan will change. The changes take effect after a certain reset period:
The final interest rate is calculated as:
Final Interest Rate=Base Rate (RLLR/MCLR/Repo Rate)+Standard Premium/Spread
Here are some factors applicants must consider before applying for a loan:
CGFSEL, Dr. Ambedkar Central Scheme, and Padho Pardesh Scheme offer interest rate subsidies on education loans.
Co-applicants will get a tax exemption on the interest paid under Section 80E of the Income Tax Act.
Some banks provide lower interest rates for existing customers with good credit scores.
Many banks offer a 1% interest rate reduction if you pay the total interest during your study period.
Some banks may charge a small additional interest (up to 0.05%) if you don’t take credit life insurance, which helps cover loan repayment in case of the borrower's death.
The Education Loan EMI calculator helps to estimate the monthly payments. However, it’s essential to check with your bank to understand their interest rate, as the education loan EMI calculator provides an estimate rather than the exact interest amount.
Propelld is an excellent choice for education loans due to its flexible loan amounts and competitive interest rates. Propelld makes it easy for students to secure funding and manage repayments effectively with a quick approval process, no collateral requirements, and personalised support.
The following are the primary benefits of Propelld.
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The formula for calculating the EMI (Equated Monthly Installment) is EMI = [P x R x (1+R) n] / [(1+R)^ n-1].
For a loan of INR 10 lakhs, with an interest rate of 8.4% per annum for five years (60 months), the EMI will be:
SBI Education Loan Calculator, Axis Bank Education Loan Calculator, Groww Education Loan Calculator, HDFC Bank Education Loan Calculator, ICICI Bank Education Loan Calculator, and Bank of Baroda Education Loan Calculator. These tools help estimate your monthly loan repayment amounts.
Yes, non-collateral education loans can range from INR 40 to INR 50 lakhs, depending on the lender and your eligibility.
Here are some of the top-rated banks for education loans:
It provides interest rates between 8.30% and 11.50%.
It provides interest rates between 8.55% and 11.25%.
There is no fixed minimum salary requirement for parents applying for an education loan on behalf of their children. However, they must demonstrate a stable financial background to prove their ability to repay the loan.
Yes, you can take two education loans from the same bank, depending on your CIBIL score and repayment capacity. However, the courses must be distinct. If applying for loans from two different banks, the details will still be tracked through CIBIL.
Subsidies are available for amounts up to INR 10 lakhs, irrespective of the sanctioned amount, starting from the academic session on April 1, 2022.
In the 2024 Budget, Finance Minister Nirmala Sitharaman announced a new education loan scheme, offering up to INR 10 lakh in loans for domestic higher education. It includes e-vouchers and a 3% interest subsidy, benefiting one lakh students annually.
Federal student loans (in India, government-backed loans) are generally the best option due to deferred repayments until after education, fixed interest rates, and manageable payment plans.
Yes, most banks allow co-applicants to fully repay their education loans. However, checking with your specific lender is important as some may have prepayment penalties or restrictions.
The calculator uses an algorithm to estimate the cost of a student loan. To use the student loan repayment calculator, enter the loan amount, interest rate, and tenure. You will get the total interest payment and the monthly EMI.
Student-friendly private study loans for learners pursuing education from partner institutions with customized loan products through a fully digital loan process.
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