Propelld Education Loan EMI Calculator

Calculate your EMI in 3 simple steps

  • Define the loan amount
  • Put tenure of the loan (in Years)
  • Define the interest amount
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Introduction

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 your monthly repayments. 

To do that, what better than using an automatic EMI Calculator. This simple yet powerful 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. 

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What is an Education Loan EMI Calculator?

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 see this easy to use Propelld Education loan EMI calculator to calculate your EMI.

How Does an Education Loan EMI Calculator Help You? 

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.

How to Use the Education Loan EMI Calculator?

‍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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How to Calculate the EMI of Education Loan?

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.

EMI Calculation Formula

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

Example: How EMI Is Calculated

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.

‍‍Get your Loan Disbursed 10 times Faster than Banks. Apply Now.

Benefits of Student Loan EMI Calculator

Below are few benefits of using a student loan EMI calculator: 

1. Quick Results

The calculator provides quick results after entering information.

2. Usage

It has a simple interface. You just need to enter: loan amount, interest rate, loan tenure, and course duration.

3. Customisable

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.

Uses of Education Loan EMI Calculator

An Education Loan EMI calculator, not just helps in calculating the EMI on your education loan, but also doubles up as: 

Education Loan Repayment Calculator

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.

Education Loan Eligibility Calculator

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.

Education Loan Interest Calculator

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.

Education Loan Tax Exemption Calculator

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.

Approval Based on Student Potential. Easy Education Loans from Propelld. Do Check your Eligibility.

Student Loan Repayment Options

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:

Option 1: Income-Based Repayment Plans

Candidates can adjust monthly payments based on their income. 

Option 2: Graduated Repayment Plans

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.

Not Just Tuition Fees, But Other Expenses Are Also Covered. Simplified Processing, Dedicated Support

How do Banks Calculate Interest Rates on Education Loans?

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:

1. Base Rate

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.

2. Floating Interest Rates

Banks calculate interest rates using Repo Linked Lending Rate (RLLR) or the Marginal Cost of Funds-based Lending Rate (MCLR). 

3. Standard Premium or Spread

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

Factors to Consider Before Applying for an Education Loan

Here are some factors applicants must consider before applying for a loan:

1. Explore Government Schemes

CGFSEL, Dr. Ambedkar Central Scheme, and Padho Pardesh Scheme offer interest rate subsidies on education loans.

2. Check for Tax Benefits

Co-applicants will get a tax exemption on the interest paid under Section 80E of the Income Tax Act.

3. Look for Interest Rate Discounts

Some banks provide lower interest rates for existing customers with good credit scores.

4. Inquire About Study Period Concessions

Many banks offer a 1% interest rate reduction if you pay the total interest during your study period.

5. Be Aware of Risk Premiums

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.

Why Propelld?

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.

Particulars

Details

Max Loan Amount

50 Lakhs

Collateral 

Not Required

Moratorium

Available

Processing Time

10 Times Faster than Banks

Disbursal Time

7 Days

Approval Rate

Higher than Other Banks

Special USP

Marks Based Approval

% Financed

100% of Fees

Take the next step in your academic journey - Apply for an education loan today!

FAQ for Education Loan EMI Calculator

How is EMI calculated for education loans?

The formula for calculating the EMI (Equated Monthly Installment) is EMI = [P x R x (1+R) n] / [(1+R)^ n-1]. 

What will be the EMI for a 10 lakhs education loan?

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:

  1. Principal amount: INR 10 lakhs
  2. Interest rate: 8.4% per annum
  3. Loan tenure: 5 years (60 months)
  4. Monthly EMI: INR 20,468.37
  5. Total interest payable: INR 2,28,102.13
  6. Total amount payable: INR 12,28,102.13

What are some education loan EMI calculators?

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.

Can I get an education loan of INR 50 lakhs?

Yes, non-collateral education loans can range from INR 40 to INR 50 lakhs, depending on the lender and your eligibility.

Which bank is best for education loans?

Here are some of the top-rated banks for education loans:

State Bank of India (SBI)

It provides interest rates between 8.30% and 11.50%.

Punjab National Bank (PNB)

It provides interest rates between 8.55% and 11.25%.

What is the minimum salary required for an education loan?

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.

Can I take two education loans in India?

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.

How much subsidy on education loan?

Subsidies are available for amounts up to INR 10 lakhs, irrespective of the sanctioned amount, starting from the academic session on April 1, 2022.

What is the new education loan policy for 2024?

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.

What type of loan is best for education?

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.

Can I pay off the full amount of an education loan early?

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.

How does the student loan repayment calculator work?

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.