Education Loan Calculator – EMI, Interest and Principal Amount
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How Can Scripbox Education Loan EMI Calculator Help You?
In today’s knowledge-driven economy, education plays a crucial role, offering numerous benefits. It empowers individuals to achieve career success, lead a respectable life, improve their standard of living, and accomplish financial goals, among other things.
Education is a valuable long-term investment that yields unparalleled returns. It opens doors to various opportunities and possibilities.
By availing an education loan, you can turn your aspirations into reality. These loans are available for career-oriented courses, such as medicine, engineering, management, and more, at both the graduate and post-graduate levels in prestigious institutions in India and abroad.
The loan covers various expenses, including tuition fees, examination fees, library subscriptions, the cost of books, laboratory tools/equipment, laptops/computers, hostel charges (if applicable), and more.
Students can apply for an education loan directly; however, their parent(s) or guardian will be considered co-applicants, assuming the role of primary debtors.
Before applying for an education loan, it is wise
Scripbox’s Education Loan EMI Calculator allows you to assess the Equated Monthly Installment (EMI) to be paid as part of your loan planning process. Scripbox’s EMI calculator for an Education Loan is a valuable tool that helps you make informed decisions before applying for a loan.
It enables you to plan your cashflows effectively for servicing your Education Loan. The Education Loan EMI Calculator assists you in determining the monthly loan instalment, i.e., the EMI for your Education Loan. This user-friendly calculator is a financial planning tool for prospective education loan seekers.
How to Use Scripbox Education Loan EMI Calculator?
Scripbox’s Education Loan EMI calculator is a free-to-use online tool that helps you estimate the EMI payouts. All you have to do is input the following information:
Input
- Loan Amount: The total amount you wish to borrow to sponsor your education.
- Annual Interest Rate: The rate at which the lender is lending money.
- Loan Tenure: The tenure in which you will repay the Education loan.
Output
Based on the above information, the calculator automatically calculates the following:
- Loan EMI: The monthly instalment that you must pay towards the education loan.
- Total Interest Payable: The total interest payable for the education loan.
- Total Amount: Total amount borrowed plus the total interest paid.
Education Loan EMI Calculation Formula
The formula for Education Loan EMI Calculation is
Education Loan EMI = P*R*(1+R)^N / [(1+R)^N-1]
where,
P – Principal loan amount
N – Loan tenure in months
R – Monthly interest rate
Education Loan Interest Rates and EMI in Top Banks India April 2024
| Bank Name | Lowest Interest Rate | EMI per Lakh |
| BARODA | 9.15% p.a. | Rs. 3187/- |
| AXIS | 11.5% p.a. | Rs. 3298/- |
| HDFC | 11.25% p.a. | Rs. 3286/- |
| IDBI | 11.1% p.a. | Rs. 3279/- |
| IDFC First Bank | 9% p.a. | Rs. 3180/- |
| UNION | 11.3% p.a. | Rs. 3288/- |
| SBI | 11.15% p.a. | Rs. 3281/- |
| CANARA | 11.25% p.a. | Rs. 3286/- |
| PNB | 10.75% p.a. | Rs. 3262/- |
| ICICI | 10.85% p.a. | Rs. 3267/- |
NOTE: EMI per lakh were computed by taking loan tenure as 3 year and education loan interests as updated on 27 April 2024
How to Calculate the EMI of an Education Loan Using the Formula?
Let’s assume Ms Neha takes an Education Loan of INR 45 lakhs for 15 years at 9% p.a. Using the formula, let’s calculate the loan EMI amount.
Monthly Interest Rate = 9/(12*100) = 0.0075
Loan tenure in months = 5*12 = 180
Education Loan EMI = 45,00,000 * 0.0075 (1+0.0075)^180 / [(1+0.0075)^180-1]
Education Loan EMI = ₹ 45,642
Total Interest Payable = ₹ 37,15,559
Total Amount = ₹ 82,15,559
Advantages of Using an Education Loan Calculator
The following are the advantages of using Scripbox’s Education Loan Calculator:
- Quick Calculation: With the education loan EMI calculator, you can instantly calculate your monthly EMI amount by entering the loan amount, interest rate, and tenure. It provides fast results within seconds.
- Budget Planning: Using the calculator, you can effectively plan your monthly budget. It estimates the amount you need to allocate for loan repayment, enabling you to manage your finances more efficiently.
- Convenience and Cost-effectiveness: The calculator is available online and allows you to access it anywhere at no cost. It offers convenience and is a cost-effective tool for calculating your EMI.
- Simplicity: The calculator simplifies the process by utilising four readily available parameters: loan amount, interest rate, and tenure. Its user-friendly interface makes it easy to use and understand.
- Compare: The calculator provides the flexibility to test different combinations of tenures and interest rates. This feature allows you to explore various options and choose the loan terms that best suit your needs.
Frequently Asked Questions
An Education Loan calculator is an online tool that calculates the Equated Monthly Installment (EMI), monthly interest, and total amount.
An educational loan usually covers the course fee, accommodation, and other related expenses.
Yes, the EMI amount is dependent on the chosen repayment tenure. If you opt for a longer tenure, the EMI will be lower, and if you choose a shorter tenure, the EMI will be higher.
For education loans up to INR 4 Lakhs, no margin is required. However, for loans above INR 4 Lakhs, a margin of 5% is applicable for studies within India and 15% for studies overseas. Note these margins make vary depending on the loan provider.
The following documents are required for the first disbursement:
– Demand Letter from the college or university
-Disbursement Request Form (DRF) signed by the applicant and co-applicants
-A signed copy of the Loan Agreement, which includes the Demand Promissory Note, DP Note Delivery-cum-Waiver Letter, Standing
Instruction Request, and Post-dated Cheque (PDC)
– Sanction Letter signed by the applicant and co-applicants
– Form A2 signed by the applicant or co-applicants (for the purchase of foreign exchange) in case of studying abroad
– Receipts of Margin Money paid to the college/university, along with a bank statement reflecting the transaction
Documents for collateral security (if applicable)
Form A2 signed by the applicant or co-applicants in case of studying at an overseas institute.
For subsequent disbursements, many of the aforementioned documents will still be required, especially the demand letter from the college or university, DRF, receipt of margin money paid, and any one of the following: exam progress report, mark sheet, or bonafide certificate.
If you miss or delay your EMI payments, you will incur a charge of INR 500 + taxes per cheque bounce. Additionally, a penal interest of 24% per annum (2% per month) will be levied on the overdue instalment (s). It is advisable to maintain a clean repayment track record whenever possible. Also, these charges may vary depending on the loan provider.
Yes, you can claim a tax deduction for the interest paid on an education loan. The interest component of your EMI is eligible for deduction under Section 80E of the Income Tax Act, 1961. This deduction is available for a maximum of 8 years or until the interest is fully paid, whichever comes earlier.
Yes, you can avail education loan with a property as collateral.
The repayment of EMI starts 12 months after the course completion or 6 months after getting employment.
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