Education Loan EMI Calculator
Last Updated : May 26, 2020, 11:42 a.m.
With the help of Education Loan EMI Calculator, you can know your monthly installments quickly without any hassle. This is a time-saving tool that calculates the exact monthly installments and helps you make the right decision.
To use the calculator you need to provide detailed information about your loan to get the Total Interest Outgo and Total Amount Payable (Principal+Interest) in the easiest and fastest manner. In order to know it, enter a few details such as:
- Loan Amount
- Interest Rate
- Tenure
Below is a table showing education loan interest rates and EMIs for various banks for 15 Years Tenure.
| Bank | Interest Rate (Per Annum) | EMI for INR 3.5 lakh | EMI for INR 7.5 lakh | EMI for INR 15 lakh | EMI for INR 20 lakh |
|---|---|---|---|---|---|
| State Bank of India (SBI) | 6.90% - 9.30% | 3,175-3,665 | 6,804-7,854 | 13,609-15,709 | 18,145-20,945 |
| ICICI Bank | 11.25% - 11.75% | 4,033-4,803 | 8,643-10,292 | 17,285-20,584 | 23,047- 27,446 |
| Bank of Baroda | 6.85% - 9.95% | 3,245-3,815 | 6,953-8,175 | 13,905-16,349 | 18,540-21,799 |
| HDFC Bank | 9.25% - 13.68% | 3,655-4,542 | 7,832- 9,732 | 15,663-19,465 | 20,884- 25,953 |
| Union Bank of India | 7.20% - 10.45% | 3,205-3,750 | 6,868-8,037 | 13,735-16,073 | 18,314-21,431 |
| Canara Bank | 7.40% - 9.40% | 3,205-3,613 | 6,868-7,741 | 13,735-15,483 | 18,314-20,644 |
| Axis Bank | 13.70% - 15.20% | 4,591-4,947 | 9,837-10,600 | 19,675-21,200 | 26,233-28,266 |
| YES BANK | 12.00% - 14.00% | 4,201-4,661 | 9,001-9,988 | 18,003-19,976 | 24,003-26,635 |
| Bank of Maharashtra | 7.05% - 8.90% | 3,729-3,804 | 7,991-8,152 | 15,982-16,303 | 17,977-21,737 |
| Punjab National Bank (PNB) | 6.90% - 9.55% | 3,205-3,718 | 6,868-7,968 | 13,735-15,936 | 18,314-21,248 |
| Bank of India | 9.05% - 9.85% | 3,687- 3,858 | 7,900-8,267 | 15,799-16,535 | 21,066-22,046 |
To have a better understanding of the EMI calculator refer to the example below.
Suppose Ramya, a 20-year-old student, applies for an education loan for postgraduate studies. And the lender has agreed to offer her the loan amount of INR 7,00,000 at an interest rate of 10.75% per annum for a tenure of 15 years. But before availing the loan, she wants to know what would be her EMI? So Ramaya used the EMI Calculator for the same to get all her answers. Take a look at the table below to know what she gets.
Table Showing EMI, Interest Outgo, and Total Repayment Amount
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
| Year | Principal | Interest | Balance Amount |
|---|---|---|---|
| 1 | ₹ 19,869 | ₹ 74,290 | ₹ 6,80,130 |
| 2 | ₹ 22,114 | ₹ 72,045 | ₹ 6,58,016 |
| 3 | ₹ 24,612 | ₹ 69,548 | ₹ 6,33,403 |
| 4 | ₹ 27,392 | ₹ 66,767 | ₹ 6,06,011 |
| 5 | ₹ 30,486 | ₹ 63,673 | ₹ 5,75,525 |
| 6 | ₹ 33,930 | ₹ 60,230 | ₹ 5,41,595 |
| 7 | ₹ 37,762 | ₹ 56,397 | ₹ 5,03,832 |
| 8 | ₹ 42,028 | ₹ 52,131 | ₹ 4,61,803 |
| 9 | ₹ 46,775 | ₹ 47,384 | ₹ 4,15,028 |
| 10 | ₹ 52,059 | ₹ 42,100 | ₹ 3,62,968 |
| 11 | ₹ 57,940 | ₹ 36,220 | ₹ 3,05,028 |
| 12 | ₹ 64,484 | ₹ 29,675 | ₹ 2,40,543 |
| 13 | ₹ 71,769 | ₹ 22,391 | ₹ 1,68,774 |
| 14 | ₹ 79,875 | ₹ 14,284 | ₹ 88,898 |
| 15 | ₹ 88,968 | ₹ 5261 | ₹ 0 |
How Interest is Calculated During Moratorium
Students get a moratorium period of 6-12 months after they complete their studies. And during this period they don’t have to pay their EMIs. However, you can service interest payments during the moratorium period if you want to.
Parameters on which the EMI Calculator Works
Loan Amount: The most important factor that is required for calculating EMIs is the loan amount. The monthly installment of your loan is dependent on the loan amount that varies from lender to lender and is calculated based on your eligibility.
Interest Rate: The interest rate is charged on the borrowed money that is the base of your EMIs. Higher the interest more will be your EMIs and, if the rates are low, then your monthly installments also be reduced, hence less burden to your pocket.
Tenure: The longer the tenure, the easier to repay the fund. For an education loan, lenders offer you 15 years of duration.
How Does Education Loan EMI Calculator Work?
The calculator works using a mathematical expression. And for which it requires values that your loan details satisfy. So the result you get on the calculator is accurate and can’t be wrong. See the formula below on which the calculator works to generate the EMI of your education loan.
EMI Calculator Formula
The calculation in the EMI calculator is done through the below-given formula:
E = P . r . (1+r)^n/((1+r)^n – 1)
where,
E = EMI (Equated Monthly Installment)
P = Principal Loan Amount
r = Monthly Interest Rate
n = Monthly Loan Tenure
What is an Amortization Table?
A table that shows your yearly repayment track using the education loan EMI calculator. It helps you know the Principal, Interest and Balance Amount of each year. Every time an EMI is paid, there is some part of principal that is reduced. The principal is the amount that you need to pay. However, by making timely payments, the principal decreases and comes to zero at the end of tenure.
Features and Benefits of EMI Calculator
Accuracy: You can get an accurate result of your education loan with the help of the EMI calculator. To use the online tool, you can visit the official bank website.
Time-Saving: The calculation is a little bit difficult to do manually but, with an EMI calculator, a person can get instant results.
Compare EMIs: To compare the EMIs, the best tool is the education loan EMI calculator. You can make changes in your education loan checking the repayment track shown by the calculator. This will help you choose the repayment option that suits your budget better.
Adjustable Tool: You can use the calculator as many times you want. Just enter your loan credentials and get the EMI you want by changing the tenure.
Get More Than a EMI: The EMI calculator not only shows you the monthly installment. But, there are some calculators which give a graphic representation of your loan and an amortization table.