How to calculate your education loan EMI’s?


So, what is EMI? It’s an equated monthly installment which is a blend of principal and interest amount. When the education loan amount is borrowed, it is actually repaid in the form of monthly EMI’s. All education loan dues are spread over a particular period to make the repayment process easier. The period, mentioned here is known as tenure (in months) in the financial loan marketplace, and can also be selected according to the repayment capacity. In today’s time, EMI is the most common option when it comes to repayment of education loan, but before you opt for it, it is vital for you to speculate and determine the amount you will pay on a monthly basis. Here comes the role of education loan EMI calculator- it helps one in planning before actually borrowing education loan. The calculator helps you to select the right loan amount for a right tenure, or you can say that the online calculator has made life somehow easier. This article is designed to give you a brief info on how an Education Loan EMI Calculator can help you in planning and managing your finances beforehand and what are the steps involved in calculating an education loan through an online calculator-



Check the Lender’s website: Today almost all the lenders and financial institutions have integrated education loan EMI calculator into their website. So, the best way is to calculate your education loan EMI’s is by simply visiting the lender’s website. There are few lenders who have a nice user interface which overall helps you in navigating the end result. You can simply hit with a search query on search engines, it will list you dozens of websites who possess education loan EMI calculators. Once you land on a website, just simply search for an EMI calculator tab.

Fill Up the details: Once you are on your end objective page, i.e. Education Loan Calculator page, all you have to do is fill the blank box with numbers or details. The details include the loan amount, rate of interest set by the lender, and the tenure. These are all variables and are completely independent, and as you fill in the details, you will get an accurate result. Few lender’s websites have a slider mechanism which allows you to change the amount, tenure by simply moving the bar and you can easily check the result, i.e. loan EMI amount beforehand.

Formula Gate: Well, apart from the automatic calculation, one can even opt-out for a manual calculation but it can often lead to errors. But, knowing what goes behind the online education loan EMI calculator, is the basic mathematical funda’s. And, the formula is- EMI = [p x r x (1+r)^N]/[(1+r)^N-1]. Over here, P = principal amount, T = tenure, and R is the rate of interest.

Well, we hope that you understood how education loan EMI calculator basically works manually and automatically, right? Apart from this, the online EMI calculator benefits you too. Online education loan EMI calculator gives an error-free result because there might be chances that while doing a manual calculation, you make an error. So, if you choose an online education loan EMI calculator, the chances of making an error are next to impossible. And, in addition to this, it saves your time, as manual calculation requires you to put your lot of mental effort, hence consume time. With the help of education loan EMI calculator, the end result is instant.

Hope this information has been helpful to you. Happy Borrowing!

Related Blog: 4 Tips to manage your overseas education loan

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