Education Loan EMI Calculator

Monthly EMI
₹ 19,566

Principal Amount
 ₹ 1,000,000

Total Interest
₹ 173,960

Total Amount
 ₹ 1,173,960

Loan Amount

₹ 100000
₹ 1 Cr

Rate of Interest(p.a)

1 %
30 %

Loan Tenure

1 Yrs
30 Yrs

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Education Loan EMI Calculator

Taking an education loan involves long-term financial planning. An education loan EMI calculator is an invaluable tool for students and parents to estimate loan repayments and make an informed borrowing decision. This guide covers how to use an education loan EMI calculator.

What is an Education Loan EMI Calculator?

An education loan EMI or Equated Monthly Installment calculator is an online tool which allows you to calculate the monthly EMI payable for a specific education loan amount, tenure and interest rate.

Based on the loan details you input, it gives you the fixed EMI amount that needs to be paid every month to repay the loan within the chosen tenure period.

Education loan EMI calculators are offered by banks and NBFCs providing education loans. They are also available as free calculators on various financial websites.

How to Use an Education Loan EMI Calculator

Using an education loan EMI calculator is quite simple:

Step 1: Determine the loan amount you need - Calculate the total costs of your education, including tuition fees, living expenses, books, etc. This will be the loan amount you need.

Step 2: Find the interest rate - Research the prevailing interest rates for education loans from different banks and NBFCs. This is generally in the range of 8-15%.

Step 3: Decide the repayment tenor - Education loans allow repayment periods upto 15 years after an initial moratorium or grace period. Decide the time period for which you want to repay the loan.

Step 4: Use the EMI calculator - Input the loan amount, interest rate, and repayment period into the EMI calculator. It will calculate your Equated Monthly Installment (EMI) amount.

Step 5: Check if EMI fits your budget - See if you can pay the EMI amount calculated comfortably every month once you start working after the course completion. Account for your starting salary, living expenses, etc.

Step 6: Submit documents to the bank - Once finalized, apply for the education loan by submitting income proof, collateral documents, etc., as the bank requires.

Step 7: Track EMIs - Once the loan is approved, keep tracking the EMIs to be paid monthly. Prepay EMIs if possible to reduce interest outgo.

The EMI calculator is a very useful tool to plan repayment of your education loan even before you apply. Make sure you use it for all loan options before finalizing.

How Does the Education Loan Calculator Help You?

Here are some of the ways an education loan EMI calculator benefits you:

  • Estimates EMI amount The primary benefit is that it gives you a clear sense of the monthly EMI amount based on the loan details. This helps assess whether the EMI fits your budget.
  • Helps choose optimal loan amount and tenure You can use the calculator to determine the loan amount and suitable repayment period that brings your EMI within an affordable range. Avoid taking a loan with a burdensome EMI.
  • Compare costs of different lenders Education loan EMI calculators help you compare EMIs across multiple lenders like banks and NBFCs. This allows you to opt for the lender offering the lowest EMI for your required loan amount.
  • Understand total interest costs The calculator provides the breakup of the total interest payable over the tenure. This gives clarity on the overall interest costs so you can optimize the loan amount and tenure.
  • Plan repayment schedule Once you are clear about the EMI amount, you can accordingly plan your repayment schedule and make arrangements for the periodic outflow.
  • Make Informed decision Most importantly, it enables you to make a well-informed borrowing decision suited to your financial situation instead of blind guesswork.

Features of Education Loan EMI Calculator

Some key features and capabilities of an education loan EMI calculator:

  • User-friendly - Simple interface allowing easy data inputs.
  • Flexible - Option to input different loan amount, rate of interest and tenure combinations.
  • Detailed EMI breakdown - Shows principal, interest and total EMI amount.
  • Amortization schedule - Shows breakup of each EMI into principal and interest.
  • Foreclosure estimate - Estimates savings from prepayment or foreclosure.
  • Loan eligibility calculator - Calculates maximum loan amount you can avail based on repayment capacity.
  • Processing fee - Includes processing fee while calculating total repayment amount.
  • Tax benefits - Factors in tax savings from interest paid.
  • Print/Save results - Option to print detailed EMI schedule or save results as PDF.

How Education Loan Interest is Calculated

Education loan interest calculation involves some key steps:

  • Identify the annual interest rate Different lenders offer education loans at varied interest rates in the range of 10-15% p.a. Select a lender offering the lowest rate based on your credit profile.
  • Arrive at monthly interest rate The annual interest rate is divided by 12 to arrive at the monthly interest rate. For example, 12% p.a. interest becomes 1% monthly interest.
  • Calculate interest on outstanding amount Monthly interest is calculated only on the principal amount remaining outstanding at the beginning of each month.
  • Determine reducing balance Every EMI paid reduces the outstanding principal amount. The interest for subsequent months is calculated on this reducing balance.
  • Accumulate overall interest The total interest payable is obtained by accumulating the monthly interest amounts over the full tenure.

Here is a simple example:

  • Education loan of Rs 10 lakhs taken at 12% annual interest with 15-year tenure
  • Monthly interest rate = 12/12 = 1%
  • Interest for 1st month = 10,00,000 x 1% = Rs 10,000
  • Balance after 1st month is 10,00,000 - 10,000 = 9,90,000
  • Interest for 2nd month is calculated on this balance of 9,90,000 and so on.

This way the total interest payable is calculated by an education loan EMI calculator.

Advantages of Using an Education Loan EMI Calculator

Using an education loan EMI calculator offers the following key benefits:

  • Provides complete clarity on EMI amount and enables prudent financial planning.
  • Allows you to optimize loan amount as per repayment capacity.
  • Simplifies the usually complex loan calculations.
  • Helps compare across multiple lenders and identify the best offers.
  • Saves time with quick estimation without complex manual calculation.
  • Available online 24/7 on bank websites and financial portals.
  • User-friendly calculator allowing easy modeling of different scenarios.
  • Useful tool for students as well as parents planning for education loan.
  • Removes guesswork from loan decision making.
  • Empowers you to make the right borrowing choice for your education.


Q1. Does the EMI change during the loan tenure?

For most education loans, the EMI remains fixed as per the schedule for the entire tenure. Only the principal and interest components within the EMI change.

Q2. How frequently is the EMI payable?

Education loan EMI can be paid monthly, quarterly, half-yearly or annually. Monthly EMI is the most common.

Q3. Can the tenure be modified later?

Yes, most lenders allow you to modify the loan tenure later by paying a small fee. The EMI amount will change accordingly.

Q4. What are the charges other than EMI?

Besides EMI, lenders charge a one-time processing fee. There can also be prepayment or foreclosure penalty and default charges.

Q5. How are discounted interest rates calculated?

Some lenders offer discount on base rate for high credit profile borrowers. The discounted rate is used to calculate the interest and EMI.