Education Loan EMI Calculator

Education is an important aspect of an individual’s life and in today’s knowledge-oriented economy, it plays an even greater role. Having a good education increases career prospects, leads to a better lifestyle and sustains a respectable life. However, education in today’s fast-paced world does not come cheap. Instant Education loans would help parents in funding their children’s education efficiently, helping them realize their dreams and have a secured future.
 
While deciding on an education loan, apart from the amount of loan, the rate of interest and the tenure of the loan applied are key factors that determine the loan EMI.
 
In short, EMI equals the principal loan amount and the rate of interest. It is normally fixed for the entire loan tenure with monthly repayments to be made over this fixed tenure. In the initial years of your education loan, you need to pay more towards interest, and over time, a greater proportion gets adjusted towards the loan principal.
 
EMI gets calculated based on the below formula.
 
EMI = P*R* (1+R) ⁿ
                           ((1+R) ^n-1)
 
P = principal loan amount
R = rate of interest
n = number of monthly instalments
 
The tenure of the loan has an inverse relationship with the EMIs to be paid. This means a short loan repayment period has higher EMIs to be paid and vice-versa.