# Education Loan EMI Calculator in India

## Introduction

The second wave of Covid-19 almost seems like 2020 is repeating itself, but this time, it’s more sturdy and robust. Where everyone is dealing with unforeseen challenges, students are also struggling when it comes to planning for their higher education in India or abroad. But, we all know that one of the efficient ways to eliminate the funding deficit is by availing an education loan. Education loans act as a pillar of support to many students. However, before applying for an education loan, students must be aware of the monthly EMI’s they will be making to repay the loan after their studies. This article aims to give clear insights on the education loan EMI calculator in India and how it is beneficial for students who are planning to take an education loan.

## What is EMI and how does an Education Loan calculator work?

EMI stands for Equated Monthly Instalment. The EMI of the loan comprises two components i.e principal portion and the interest portion of the loan. Here, the borrower is required to repay EMIs on a monthly basis till the tenure of the loan. If the student has opted for a fixed interest rate, then the EMI remains the same for the entire repayment tenure

So, the EMI depends on three prime factors namely:

• Loan Amount: The principal amount that has been borrowed by an individual
• Interest rate: Rate of interest charged on the money borrowed
• Tenure of loan: A stipulated frame where the borrower is required to repay the money with the interest in full

## How is EMI Calculated?

The mathematical formula to calculate EMI is: P × r × (1 + r)n/((1 + r)n - 1)
The three main factors that constitutes the formula is:

• Loan amount (P)
• Interest rate (r)
• Repayment tenure (n)

For eg:  Duration of your course is 24 months, principal amount is 10 lakhs, rate of interest charged is 12%, and the repayment tenure of the loan is 72 months. Then you have to pay approximately Rs 19550 per month.

Quite a lot of work? Do not want to stress more on mental maths and want instant results? Then check out this Education loan EMI calculator to know your accurate EMI amount instantly.

Still facing trouble? Connect with our team at Vidyaloans as our team will connect you with the best Government bank with lower interest rates. They will help you in each and every step and will assist you throughout the education loan process in India.

## How is the education loan calculator different from others?

• Moratorium period: Education loan is not similar to other loans like home loans, personal loans, or any other retail loans as in retail loans the person who borrowed the loan is obligated to make payments from the next month of the loan taken whereas education loans have a moratorium period. During the moratorium period the borrower is not obligated to make any payments. It is usually the course period plus 6 months or can extend upto 1 year. Students neglect to include moratorium period while calculating EMI. Therefore, to get accurate numbers on your EMI, do not forget to take moratorium period into account while calculating.

• Concept of Compound and Simple interest: Simple interest is calculated on the principal amount of the loan whereas compound interest is calculated on the principal amount plus the interest accrued. So here, all banks have a different method of calculating the interest during the moratorium period as some banks consider monthly compounding, some banks consider annual compounding and some banks do not compound the interest portion at all. Therefore, do not forget to take that into consideration while using student loan EMI calculator.

• Semester-wise breakdown of fees: Unlike other loans, in education loan the entire principal amount is not given at one go, instead the amount is given semester-wise or year-wise. Therefore, do not forget to consider this while calculating your education loan EMI.

So are you wondering where you can avail a calculator which includes all the features mentioned above? Do not worry, you can use the Education loan EMI calculator where you can calculate and compare the actual repayment considering your moratorium period, partial disbursements, and more!

## Benefits of using the Education loan EMI calculator?

• Swift and Simple
Education loan calculator is no rocket science. Calculating your EMI using mental math can be exhausting and can take a lot of time. This Education loan EMI calculator is very uncomplicated and very easy to use. You can get instant and accurate results with the use of a student loan calculator.

• Know the right amount you have to pay to the lender
With the help of a student loan calculator, a student can understand the  monthly EMIs they are required to pay after their moratorium period. When you calculate your monthly EMIs and if it’s too high or feel like you will be unable to pay, then you can change your loan repayment period or decrease your loan amount. This will allow you to make the right and wise decision according to your educational needs.

• Try different figures
Student loan interest calculator allows you to try different figures and combinations with respect to the loan amount, interest and  repayment tenure. You can keep on changing figures until you find a perfect combination that matches your needs.

• Customize your student loan interest calculator
When you use a student loan calculator, you acquire the ability to easily customize the details that you enter in the education loan EMI calculator. Once you are done putting down the values in the required fields, you can furnish them as per your needs. This will allow you to explore multiple ways and choose the best for you.

• Accurate results
One of the prime reasons to go for a student loan EMI calculator is because it provides accurate and instant results. Use of traditional methods, i.e by applying mathematical formulas and then calculating them would be time consuming and may result in wrong calculations and inaccurate  figures. Use of student loan calculators will save you from complex algorithms and also save a lot of time.

If you are an aspirant who aims to pursue higher education and are looking for an education loan, this is the right platform. Connect with our team at Vidyaloans and they will guide you through the entire education loan process and will guide you in each and every step.

About the organization:VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.