Nowadays, ambitious students aspire to achieve their academic aspirations independently by opting for an education loan. As per the recent data, the amount of education loans disbursed increased from Rs 16,000 crore in 2021-22 to Rs 17,000 crore in 2022-23. This indicates that higher education costs do not deter students from achieving their academic goals. However, students must plan their education loan journey, and the Education Loan EMI Calculator is a fantastic tool for that. So, let’s understand this online calculator better.

Key Highlights:

• What is an Education Loan EMI Calculator?
• Benefits of student loan calculator
• Steps to use an education loan interest calculator
• How is EMI on education loans calculated at Avanse Financial Services?
• FAQs on student loan EMI calculator
• Are there any other calculators that can be used for education loans?
• When to use the Education Loan EMI Calculator?
• Can the EMI calculator be used more than once?
• Is taking an education loan a good idea?

What is an Education Loan EMI Calculator?
The education loan calculator is a free online tool that helps you find the projected EMIs of your student loan. When you opt for an education loan, you should know your EMIs to plan your repayment strategy. This EMI education loan calculator is what you need when you need to figure out your monthly EMIs. You have to enter three elements: annual interest rate, tenure and loan amount. The yearly rate of interest will be pre-decided by your lender. So, you can enter the tenure and loan amount in different permutation combinations to find the EMI that works best for you.

Benefits of student loan calculator

• Instant answers: You can avoid mental math and ditch the manual calculations. The estimated EMI will be right in front of you in seconds!
• Clarity: It gives you an idea of projected EMIs that you will have to pay each month to repay the student loan responsibly.
• Plan your budget: Once you know the EMI amount you must set aside, planning your monthly expenses becomes a piece of cake.
• Accurate results: The student loan EMI calculator uses a complex algorithm that provides precise calculations.
• Try as many combinations as you want: You can enter different tenure and loan amounts till you find an EMI amount that meets your budget.

Steps to use an education loan interest calculator

• Enter the interest rate
• Enter the tenure in months as per your choice
• Enter the loan amount you plan to borrow based on your college expenses and let the calculator do its job. It takes only a few seconds. That’s how simple it is!

How is EMI on education loans calculated at Avanse Financial Services?
We use the following formula to calculate an EMI on loan for education.
EMI = [P x R x (1 + R)N]/[(1 + R)N-1]

• P = Principal amount
• R = Rate of interest
• N = Tenure in months

So, for instance, if the student loan amount is INR 5,00,000 at a 12% interest rate and you are planning to repay in 24 months. Using the above-mentioned formula, the estimated EMI will be INR 23,536 every month. To avoid these difficult calculations, we have introduced the Education Loan EMI Calculator for your ease.

FAQs on student loan EMI calculator

Are there any other calculators that can be used for education loans?
Yes. There are two more calculators for students: College Course Expense Calculator and Eligibility Calculator. You can use the College Course Expense Calculator to estimate your overall course cost. Whereas the Eligibility Calculator is used to find the approximate education loan amount, you are eligible to borrow based on your current finances.

• When to use the Education Loan EMI Calculator?

The right time to use the EMI calculator is when you are planning to apply for a student loan and want to find out the estimated EMIs. 

• Can the EMI calculator be used more than once?

Yes, definitely. Education Loan EMI Calculator is a free online tool that can be used as often as you want.

• Is taking an education loan a good idea?

Many students opt for student loans due to multiple benefits. Education loan is a prudent way of financing your higher studies independently without depending on your parents. Also, when you opt for student loans, you don’t have to liquidate your savings; instead, you can set them aside for emergencies. Furthermore, you build a good credit score by repaying your education responsibly. A healthy credit score will help you enjoy multiple benefits when you opt for other credit solutions such as car loans, home loans or credit cards.
So, this is everything you must know about Education Loan EMI Calculator. If you want more information on the education loan application and documentation process or education loan rate of interest, please connect with us. We are just a call away.