For an equated education loan, the principal and interest components of EMIs are combined. It refers to the total sum you will pay every month until the entire loan has been repaid. Typically, the EMIs are set for the duration of the student loan. A significant amount of your initial student loan repayment is allocated to the interest component of the loan. As you go, a larger part of your repayments will be applied to the principal portion of your student loan. Given the escalating expense of school, you might not have enough money to give your kids a good education.
You might even want to send them for more expensive further education abroad. To provide your children with a great education, whether in India or abroad, you can apply for an education loan through a bank or an NBFC. Starting in the first month, you are exempt from making monthly payments on your student loan EMIs. Even after you finish the educational course, you still have to pay for it. The loan covers a caution deposit, accommodation costs, travel costs, and even the cost of a computer or books. Up to INR 4 lakh in collateral-free education loans are available from banks.
What is an education loan calculator?
An education loan EMI calculator is a tool that displays the monthly payments you must make to the lender. An education loan EMI calculator would provide your EMIs in a matter of seconds once you select the loan amount, interest rate, and loan term. The money you borrow, the rate of interest the bank charges, and the length of the loan all affect the EMI you must pay. If you provide proper information, the education loan calculator will display the precise monthly payments. A formula box with three sliders that display the loan amount, tenure of the loan, and interest rate make up the education loan calculator. The principal and interest repayment amounts are broken down into monthly instalments under the amortisation plan. In a matter of seconds, you can see clearly how much of your student loan debt you have paid off and how much is still owed.
How does an education loan calculator work?
The following mathematical method can be used to determine the amount of your student loan EMI: [P x R x (1+R)N)/[(1+R)N-1]]. P is the principal amount, R is the interest rate and N indicates the years you have been allotted to repay the debt. The period is measured in terms of the period of months because EMIs are paid every month.
To determine the amount of your EMI, follow these steps:
- Choose the loan amount using the slider.
- The loan tenure then has to be set in months.
- Pick the interest rate by sliding the slider.
- The education loan calculator displays the amount due, interest, and EMI due.
- Change the input sliders at any moment to recalculate your EMI.
- Moving the sliders will instantly compute your EMI.
In a matter of seconds, an education loan calculator online will display your EMIs. You can see how much in EMIs you will have to pay each month. It assists you in creating a spending and saving plan for your financial objectives. You may see the education loan EMIs you have previously paid off on the amortisation schedule. Additionally, you gain knowledge of the student loan’s principal balance, making it easier for you to plan your finances. The convenience of your home or any other location is no barrier to using an education loan EMI calculator.
Things to Remember While Getting an Education Loan
The majority of institutions demand an extra cost for processing student loans. This fee must be paid by the applicant or co-applicant and must be included with the loan application. This cost might be as little as 1% of the loan’s principal, or it might not be charged. The processing charge should always be confirmed with your lending bank or in the relevant loan documentation. The processing costs are not factored into the education loan EMI calculator calculations.
The Bottom Line
The EMIs for a specific duration and interest rate can be calculated in seconds. Four accessible quantities are provided as the basis for calculation. You can enter several values in the boxes that need to be filled out after calculating the EMI for the education loan. These values include the loan tenure, the interest rate for the education loan, and the principal amount you want to choose. Thanks to this feature, you will be able to experiment with various loan possibilities, which aids in their comprehension of the numerous configurations you have to choose from. This way, you can choose solutions that best suit your needs and not put too much strain on loan payback. Now that you know how an EMI can be calculated using an education loan calculator, you can go to the official website of Piramal Finance (https://www.piramalfinance.com/) and utilise the consumer-focused education loan calculator online to your benefit.