All You Need to Know About Education Loan Interest Calculator

If a search engine report to be believed, people search for education loan or related phrases every month. Today, education has become expensive and especially if one is aiming for a premium institution for higher studies, education loan can be a big help. Well, taking an education loan at some point is easy, but paying back requires careful planning. That’s why some lenders have designed and inbuilt an Education Loan Calculator so that you can check the monthly EMI’s you would be paying accordingly.

So, how does this calculator work? A calculator is a handy tool that calculates the monthly interest rate charged by the lender according to the following mathematical formula; it has different variables present in it-

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]; where P, R, and N are the variables, which simply means the EMI will change every time you change any of the variables in the formula. Let’s discuss the variables in detail. Here P denotes the principal amount, i.e. the loan amount lent to you by the lender or financial institution. The loan amount here simply depends on your tuition fees or the total education expense. Higher the loan amount, higher would be the EMI that one needs to pay for the loan amount taken. R represents the Rate of Interest, I.e. at which interest is charged on the principal loan amount and this varies one lender to another.

Education loan interest calculator tells you about the direct bearing on your EMI amount; hence, it becomes really important the one must compare the interest rates before opting for a student’s loan. N denotes the number of months (tenure) for which the education loan has been taken. The tenure of a loan basically refers to the total time period given for the repayment of an education loan. Since the repayment is done every month, hence the tenure is calculated in months and not in years. Like tenure of 3 years is equivalent to 36 months, and so on.

On seeing the cost of education, it appears to be on the rise every year. So, if you are planning to go for higher studies, you can plan your expense with the help of education loan interest calculator. Usually, this financial instrument comes with a moratorium period so that you can start paying off the loan amount only after your education is complete. For this, you can use the Educational Loan Emi Calculator to find out the final EMI amount according to the interest rate you need to pay.

Well, even before you apply for student’s loan, with the help of education loan interest calculator you can obtain the final EMI amount you need to pay in advance. Calculating your EMI depending on the interest rate will help you to plan your budget in order to make the repayments on time.

And, the other benefits are -

Accessibility: You can use this tool anytime, anywhere and can plan your budget calculations.
Accuracy: Along with this using education loan interest calculator is more accurate than calculating and dealing with numbers yourself, right?

Hope this information helps you. Happy Borrowing!

Related Blog:   3 cost of an educational loan you should keep in mind.

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