Are you planning to take educational loan for your studies? One of the best government offerings, the education loan is available to all the students of India who aim to attain higher education in the home country or abroad. The students can apply for the loan and then begin paying back when they complete the studies and start their job.
To facilitate the students to know about
their outstanding EMI, there is a simple and convenient to use a tool called Education
Loan Interest Rate Calculator.
What is an EMI calculator?
After taking the loan, you need to pay the
loan amount back to the bank in short equated monthly instalments. This is
called EMI. It is an agreed fixed monthly repayment amount that the borrower
has to pay to the bank. The EMI is a mix of principal amount and the applicable
interest.
An Education
loan interest calculator helps the borrower to calculate his monthly
payback amount. This is available online and can calculate your outstanding in
a few seconds.
What information does the EMI calculator
use?
The EMI calculator uses only a few inputs
to calculate the final monthly amount. They are the total loan amount you have
taken from the bank, the duration of the loan, the interest rate applicable,
and the amount of processing fee.
What is the traditional method of
calculating EMIs, if I am not using EMI calculator?
Traditional way can be tedious and lengthy.
The formula is:
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1].
Where,
P = principal loan amount
R = rate of interest
N = monthly instalments
Why should I go for EMI calculator?
An EMI calculator is simple, easy to use,
less time taking or quick, not complicated at all, and user friendly. Many
people use education loan EMI calculator to cut short their calculations. It is
also an accurate method of calculation that gives correct results.
I don’t know what is a processing fee
for my education loan. What to do?
You can check your loan documents to know
the processing fee. You can also talk to the bank directly to find the same.
Since educational loan calculator needs the input of the processing fee to
calculate the applicable EMIs correctly, it is must for you to know that.
Will I get different results if I use
the EMI calculator of different banks for the same loan amount?
The education
loan EMI calculator uses inputs such as:
the total loan amount you have taken from
the bank
the duration of the loan
the interest rate applicable
the amount of processing fee.
Even if the loan amount and the tenure of the loan remain the same, if the interest rates are different for different banks, then the final amount will change. Also, if the processing fee is different for different banks, then also the amount will change.
