Education loan calculator
An Education Loan Calculator is a financial tool that allows users to calculate EMIs as per the loan amount and tenor selected. The calculator also computes the total amount and the total interest payable by the tenor’s end.
Utilise this online education loan calculator to make an informed decision regarding the loan amount and tenor that will suit your needs best.
How to use the education loan calculator?
Education loan on property or loan against property for education is a secured loan offered by Bajaj Finserv. You can avail of this loan by mortgaging your property to fund your child’s educational expenses in India or abroad.
- Enter the loan amount you wish to borrow.
- Input the interest rate offered by the lender.
- Specify the loan tenure or repayment period.
- The calculator will instantly display the EMI (Equated Monthly Installment) amount.
- Learn about the repayment schedule and total interest payable over the loan tenure.
Use this information to plan your budget and make informed borrowing decisions.
Benefits of Using Education Loan EMI Calculator
Using an education loan EMI (Equated Monthly Installment) calculator offers several significant benefits to borrowers. It simplifies financial planning by allowing users to quickly determine their monthly repayment amounts based on the loan amount, interest rate, and tenure. This tool aids in better budget management by providing a clear picture of future financial commitments. Additionally, it enables borrowers to compare different loan offers and choose the most affordable option, thereby avoiding potential financial strain. By offering instant and accurate calculations, an EMI calculator saves time and effort, eliminating the need for complex manual calculations. Ultimately, it empowers borrowers with the knowledge needed to make informed decisions about their education loans, ensuring a smoother and more manageable repayment process.
Bajaj Finserv App for All Your Financial Needs and Goals
Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.
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Frequently asked questions about education loan calculator
It is an online tool that calculates the amount you must repay on your loan. More prominently known as a loan against property EMI calculator, it also computes the instalments you need to pay every month. The EMIs vary as per your chosen tenor.
Along with that, it also works as an Education Loan Interest Calculator, thus calculating the total interest payable over its tenor. Additionally, it also calculates the total payment to make by the tenor’s end. The total payment is the sum of the principal amount and the interest.
EMI, expanded as Equated Monthly Instalment, is the total amount you need to pay every month until you repay the entire loan. It consists of the principal amount and the interest charged on the loan.
This study loan calculator helps you assess EMIs for different tenors, and thus aids you in choosing an appropriate repayment schedule. Assess your financial ability for EMI payment and choose your tenor accordingly.
Knowing the monthly outflow of cash towards the loan repayment helps you plan your finances well ahead of time, which ensures financial stability in the long run. So, over the years of your education loan tenor, you can have a fair idea of the amount you have to spare every month.
The Bajaj Finserv Education Loan Calculator uses three primary variables to calculate results. They are as follows:
- P stands for the principal amount of loan
- N stands for the loan’s tenor or duration
- R stands for the applicable rate of interest per month
Based on these, it calculates EMIs, symbolised by ‘E’.
This student loan calculator computes the result with the help of the following formula – [P x R x (1+R)^N]/ [(1+R)^N-1].
Borrowers must fulfil the age, income, employment, and residential eligibility to apply for an education loan on property with Bajaj Finserv. Salaried individuals must be between 23 and 2years* old, and employed with an MNC, a public or a private sector company.
Self-employed applicants must age between 25 and 70 years*, with a regular income source. Both types of applicants must also be resident Indian citizens.
*The upper age limit is considered as the age at the time of maturity of the loan
Salaried individuals must apply for an education loan on property with their bank account statements of 6 previous months, latest salary slips, address proof, Aadhaar card, PAN card, and IT returns.
For self-employed applicants, the documents include bank account statements of 6 previous months, Aadhaar card, PAN card, and address proof. Applicants must also submit documents of the property to be mortgaged.
Yes, individuals can claim an annual tax deduction of up to Rs. 1.5 lakh under Section 80E of the Income Tax Act 1961 for the interest paid towards a loan availed for higher education, including education loan on property. This deduction is available for a maximum of 8 years from the year when repayment starts. Loans taken for higher studies both in India and overseas are eligible for this tax benefit.
An education loan on property is a secured advance and requires borrowers to mortgage a residential or commercial property as collateral. Individuals must also meet age, income, and residential eligibility criteria to apply. It is thus available without a guarantor. Utilise an online education loan EMI calculator to assess your repayment capacity and apply accordingly.
Once you have calculated your EMIs with the Education Loan Calculator and finalised the tenor, interest rate and principal loan amount you need, it’s time to apply for your loan.
However, before that, you must check the eligibility requirements to know if you qualify for the loan. Bajaj Finserv lays down loan against property eligibility criteria and documentation requirements that are simple to meet.
So, calculate the EMIs suitable for you, and apply for a loan against property for education with Bajaj Finserv.
Although an education loan interest rate calculator and an equated monthly instalments (EMI) calculator may appear similar, they are not the same. An education loan interest rate calculator estimates the interest that you'll accrue over the loan tenure based on the loan amount, interest rate, and loan tenure. On the other hand, an EMI calculator incorporates both the principal loan amount and the accrued interest to determine the monthly repayment amount throughout the loan period.
The formula used to calculate the Equated Monthly Installment (EMI) for educational loans is E = P . r . (1+r)^n / [(1+r)^n – 1] where 'E' is the EMI, 'P' is the principal loan amount, 'r' is the monthly interest rate represented in decimals (annual interest divided by 12 and then divided by 100), and 'n' is the tenure of the loan in months.
To calculate a student budget for an education loan, several factors need to be considered. These include the cost of tuition, stationery, books and material, accommodation, food, travel, and other living expenses. Determining these costs for the period of the course is a critical aspect of budgeting for an education loan. Apart from these, consider the costs associated with internships, field trips, or any other course-required activities. It is also advisable to factor in an additional amount for unexpected expenses or emergencies. With an estimated total expenditure, you can make an informed decision about the loan amount you need to apply for.
