Calculate Education Loan EMI
An Education Loan EMI Calculator is a financial tool that helps users calculate their EMIs based on the loan amount and tenure selected. The calculator also computes the total amount payable and the interest to be paid over the loan’s tenure. Using an education loan interest rate calculator can assist borrowers in planning their finances more effectively, offering a clear breakdown of the repayment schedule and helping them understand the financial impact of the loan.
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 EMI 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.
Education loan EMI calculation formula
The Education Loan EMI is calculated using a standard formula that factors in the loan amount, interest rate, and loan tenure. The formula for calculating EMI is:
EMI=P×r×(1+r)n(1+r)n−1
Where:
- P = Principal loan amount (the amount borrowed)
- r = Monthly interest rate (annual rate of Interest divided by 12, then divided by 100)
- n = Loan tenure in months (the total number of months for repayment)
This formula helps you calculate the fixed monthly payment (EMI) required to repay the loan over the selected tenure. The EMI remains the same throughout the repayment period, although the portion of principal and interest paid changes over time.
Example of education loan EMI calculation in India
To understand the calculation better, let’s go through an example using the Education Loan EMI Calculator.
Loan amount (P): ₹10,00,000
Annual interest rate: 8%
Loan Tenure (n): 10 years (120 months)
Convert the annual interest rate to monthly interest rate (r):
Annual interest rate of 8% = 8 / 12 = 0.6667% per month
So, r = 0.006667
Substitute the values into the formula:
EMI=(1+0.006667)120−110,00,000×0.006667×(1+0.006667)120
Calculate EMI:
EMI≈₹12,106.36
Thus, the EMI for this education loan would be approximately ₹12,106.36 per month.
Benefits of Using Education Loan EMI Calculator
Here are some key advantages of using the Education Loan EMI Calculator:
- The calculator instantly provides the EMI amount you need to pay.
- It offers a clear breakdown of the monthly EMIs you'll be paying.
- It helps you budget effectively for your loan payments and save for other financial goals.
- The amortization schedule shows the EMIs you've already paid.
- You’ll also get insights into the outstanding principal, helping you manage your finances better.
- The calculator is accessible from anywhere and is completely free to use.
Bajaj Finserv app for all your financial needs and goals
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Frequently asked questions about education loan calculator
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.
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.
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.
Yes, most education loan EMI calculators are free to use. They are available online and allow users to calculate EMIs without any charges or hidden fees.
Yes, you can input different interest rates into the calculator to see how varying rates affect your monthly EMI. This feature helps in comparing different loan options effectively.
Some education loan EMI calculators allow you to factor in prepayments, but not all. Check the specific calculator to see if it includes prepayment options in the EMI calculation.
The accuracy of the calculator depends on the data provided. If you enter the correct loan amount, tenure, and interest rate, the EMI result will be highly accurate for your loan scenario.
