Calculate your EMI in 3 simple steps
Whether you're preparing to study in India or abroad, an education loan can ease the financial pressure and help you stay focused on your academic goals. However, before applying for a loan, it's important to understand all about your interest rate, EMI, repayment schedule, moratorium and tax benefits.
To do that, what better than using an automatic EMI Calculator. This simple tool lets you estimate your monthly EMIs based on your loan amount, interest rate, and repayment period, helping you make smart and confident financial decisions from the start.
Lets see how.
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.
Knowing the monthly EMI that you will be paying is crucial if you are applying for or are thinking about taking out an education loan. Being aware of this figure enables you to evaluate interest rates offered by several banks and select the one that best fits your needs. It also aids in better monthly financial management.
To calculate your EMIs easily, use an education loan EMI calculator. It is easy to use, offers fast results, lets you experiment with different financing conditions, and is totally free.
As previously stated, this tool is entirely free to use and has been created with user convenience as a priority. To get started, you simply need to provide the following details:
Loan Amount: Specify the sum you intend to borrow for your education. You can easily modify the loan amount using the calculator’s slider or input field.
Loan Tenure: This indicates the period over which you plan to repay your loan. Essentially, it’s the duration for which you will be making EMI payments. Remember, a longer repayment period results in lower monthly EMIs, while a shorter tenure leads to higher EMIs.
Interest Rate: Interest rates differ among banks. You will need to input the rate that applies to your loan or the one you are considering.
Using these inputs, the calculator will provide an estimate of your monthly EMI. You can adjust the values at any time to explore various EMI options and select the one that best aligns with your financial strategy.
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Knowing how your education loan EMI (Equated Monthly Installment) is calculated helps you plan your monthly expenses and avoid surprises. At Propelld, we make financial planning easier by keeping things clear and simple.
Here is the formula used to calculate your EMI:
EMI = [P*R*(1+R)^n]/[(1+R)^n-1]
Where:
P = Principal loan amount
R = Monthly interest rate(converted to months)
n = Loan tenure in months
Let’s look at a simple example to understand how this works.
Scenario:
A student takes an education loan of ₹10,00,000 from Propelld at an annual interest rate of 12% for a repayment period of 2 years.
P = ₹10,00,000
R = 12 / 100 / 12 = 0.01 (monthly interest rate)
n = 2 × 12 = 24 months
Calculated EMI:
Using the formula, the monthly EMI comes out to be approximately ₹46,000.
An Education Loan EMI calculator, not just helps in calculating the EMI on your education loan, but also doubles up as:
You can use the EMI calculator to understand how much you'll be repaying over the entire loan period. By entering the loan amount, interest rate, and tenure, the calculator shows your monthly EMI and total repayment amount. This helps you choose a tenure that suits your budget and repayment capacity.
While not a direct eligibility tool, the EMI calculator gives you a fair idea of how much loan you can afford based on a comfortable EMI. By adjusting the loan amount and tenure until you get an EMI that fits your monthly income, you can estimate the ideal loan size for your financial situation.
The calculator helps break down your EMI into principal and interest components. By entering your loan details, you can see how much of your total repayment goes toward interest. This gives you a clearer picture of the cost of borrowing and helps you compare loan offers.
Interest paid on education loans qualifies for tax deductions under Section 80E of the Income Tax Act. By using the calculator to find your total yearly interest, you can estimate the amount eligible for tax benefits—helping you plan your savings and file returns more accurately.
Many education loans come with a moratorium period—a grace period during which you are not required to make EMI payments (usually covering the course duration plus 6–12 months). The calculator helps estimate how interest accumulates during this period and how it affects your EMIs after repayment starts.
Propelld offers a moratorium covering the course period + 6–12 months, with flexible repayment start options.
Below are few benefits of using a student loan EMI calculator:
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.
Most NBFCs, including Propelld, allow prepayment without penalty. You can close your loan early to reduce interest burden.
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.
At Propelld, insurance is completely optional. Students are clearly informed about premiums and can choose based on their needs.
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.
Ultimately, the Education Loan EMI Calculator is an indispensable tool for informed financial planning. It empowers you to compare loan offers, understand total costs, and customize repayment strategies to fit your budget and capacity.
By leveraging its capabilities, like those offered by Propelld, you can confidently navigate education financing, ensuring smarter decisions and better monthly financial management from the outset, leading to a smoother repayment journey. This free tool provides quick, customizable results to aid your critical financial choices.
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.