Every year numerous Indian students travel to study abroad. An international degree is highly valued in the global job market. Graduates with degrees from the US, UK and EU command higher salaries and better job prospects. But this comes at a steep cost of several lakhs of rupees.
An education loan for study abroad is the best way to finance a foreign degree. But before you take out a loan it is necessary to calculate loan EMI and plan repayment of education loan.
In this article, we delve into education loan EMI and how Gradright’s EMI calculator makes it easy to plan your education loan.
What is an EMI calculator and why is it important for education loans?
An EMI calculator is an online tool that helps you estimate the monthly payments required to repay a loan. EMI stands for equated Monthly Installments and before we dive deeper you must know more about EMI.
What is an EMI?
EMI is a fixed amount paid regularly to a lender each month to repay a loan. It consists of a part of the principal and a part of the total interest.
It is an ideal way to pay back a large loan such as an education loan to study abroad. They are used since they provide a structured and manageable repayment plan for borrowers.
Let us consider an example.
Vishnu took a small bank loan in June 2023 to study abroad. His course would end in 15 months and he had a six-month moratorium period. Vishnu joined a company as a developer in November 2024 and began repaying his loan in January 2025.
These were the terms of his loan –
The amount borrowed or Principal – ₹200,000
Rate of interest – 10%
Tenure or duration of the loan – 5 years
Frequency of repayment – Monthly
This is what his repayment schedule (we have shared only the first five months and last five months) looks like.
| Month | Principal (₹) | Interest Rate (%) | Principal Repayment (₹) | Interest Repayment (₹) | EMI (₹) |
| January 2025 | ₹200,000 | 10 | ₹2,582.74 | ₹1,666.67 | ₹4,249.41 |
| February 2025 | ₹200,000 | 10 | ₹2,604.27 | ₹1,645.14 | ₹4,249.41 |
| March 2025 | ₹200,000 | 10 | ₹2,625.97 | ₹1,623.44 | ₹4,249.41 |
| April 2025 | ₹200,000 | 10 | ₹2,647.85 | ₹1,601.56 | ₹4,249.41 |
| May 2025 | ₹200,000 | 10 | ₹2,669.92 | ₹1,579.49 | ₹4,249.41 |
| August 2029 | ₹200,000 | 10 | ₹4,076.69 | ₹172.72 | ₹4,249.41 |
| September 2029 | ₹200,000 | 10 | ₹4,110.66 | ₹138.74 | ₹4,249.41 |
| October 2029 | ₹200,000 | 10 | ₹4,144.92 | ₹104.49 | ₹4,249.41 |
| November 2029 | ₹200,000 | 10 | ₹4,179.46 | ₹69.95 | ₹4,249.41 |
| December 2029 | ₹200,000 | 10 | ₹4,214.29 | ₹35.12 | ₹4,249.41 |
The EMI formula makes it so that interest will be highest in the first installment and least in the last installment. At the beginning of the repayment a part of the principal is repaid and the interest on it. As more and more of the principal is repaid the interest amount reduces.
For the principal, it will be the opposite – lowest in the first installment and highest in the last installment.
Lastly, all 60 installments (since five years equals sixty months) will have the same amount.
The formula we use to calculate EMI (Equated Monthly Installment) for the loan is:
EMI = P × r × (1+r)n / (1 + r)n – 1
EMI = [ 200000 × 0.008333 × (1.008333)60 ] / [ (1.008333)60 – 1 ]
EMI = ₹4,249
What is an EMI Calculator?
The above calculation is too difficult to be done by hand. That is why an EMI calculator is used.
An EMI calculator might be based on an Excel formula or it can be online.
What is the importance of an EMI calculator for students?
An EMI calculator is important because it helps you understand and plan your loan repayments.
Here are the various reasons why it is important:
Financial Planning
EMI calculation tool simplifies financial planning for you. It is possible to see the impact of different loan amounts, interest rates and tenures on your monthly budget.
Budgeting
Since you know your monthly EMI beforehand
By knowing your monthly EMI, education loan planning becomes easier. You can better budget for other expenses and comfortably repay the loan.
Comparing Loan Options
You can use an EMI calculator for students to compare different loan offers from various lenders.
Bank A offers you a loan of ₹35 lakhs at 9.4% for 10 years and Bank B offers you a loan of ₹35 lakhs at 10.2% for 14 years. You can choose the most affordable option.
Time-Saving
It eliminates the need for manual calculations and potential errors. EMI calculators are the perfect loan decision tools that automate the process.
In brief, it makes financial planning for loans easier, faster and completely error-free.
Note: While an EMI calculator helps you plan your repayments, finding the right loan in the first place is just as important. That’s where GradRight’s loan bidding platform becomes your biggest advantage.
Instead of applying to one bank and accepting whatever rate they give, GradRight lets you:
- Compare loan offers from 15+ trusted lenders, including India’s top public banks, private banks, and NBFCs.
- See real interest rates and terms before uploading your documents.
- Use one platform to review, negotiate, and select the most affordable loan for your future.
- Avoid paperwork and bank visits—it’s 100% online and built for students.
Even a 0.5% difference in interest could save you lakhs over the repayment period.
So, once you shortlist offers through GradRight, plug the numbers into the EMI calculator to see what your monthly payments will actually look like.
How GradRight’s EMI calculator works
Gradright’s EMI Calculator is an innovative tool. It lets you calculate your monthly education loan payments with ease. When you consider an education loan, determining the EMI amount is crucial in deciding the ideal loan amount and repayment duration.
The GradRight EMI Calculator is designed to make education loan planning easy and hassle-free.
You don’t have to use complex formulas or manipulate an Excel spreadsheet.
How to use Gradright’s EMI calculator
Step 1 Enter Your Loan Amount
Simply type in the amount you plan to borrow. In this case, we’ve entered ₹20,00,000 (₹20 lakhs).
Step 2 Set the Loan Tenure
Use the slider to adjust how long you want to repay the loan. Here, we’ve set it to 10 years (120 months).
Step 3 Choose the Interest Rate
Another slider lets you select the interest rate. We’ve set it to 8.8% per annum.
Step 4 Get Instant Results
As soon as you adjust these values, Gradright’s EMI calculator instantly displays the results:
| EMI Amount: ₹25,119 per month |
| Total Cost of Loan: ₹3,014,302 |
| Total Interest Paid: ₹1,014,302 |
Simply input three details – loan amount, repayment term, and interest rate – and your EMI is calculated automatically. That is all.
Also Read: Education Loan EMI Calculator: Calculate EMI for Your Student Loan
Benefits of using GradRight’s EMI calculator for loan planning
Choosing the right education loan is a big decision. A loan of several lakhs is the first major loan of your life. The terms and conditions you choose will affect your financial decisions well into your 30s. That is why GradRight’s EMI Calculator makes the process simple and easy for you.
Instant and Accurate EMI Calculation
There is no need for complex math formulas and spreadsheets. Simply enter your loan details, and Gradright’s EMI calculator provides an accurate EMI amount instantly.
Helps You Compare Loan Options
Simply adjust the loan amount, tenure, and interest rate, and you can easily compare different loan scenarios. This lets you choose the most affordable option that fits your financial situation.
Complete Loan Breakdown
The EMI calculation tool not only shows your EMI but also gives a detailed breakdown of:
- Total Loan Cost (Principal + Interest)
- Total Interest Paid over the tenure
- Monthly EMI payments
Makes Education Loan Planning Easier
You can easily grasp the long-term impact of your loan and take up education loan planning. Education loans are long-term commitments between 8 and 20 years. You might be in your mid-thirties by the time you complete payment. The key to a stress-free repayment is to know beforehand your commitment.
100% Free & Easy to Use
GradRight’s EMI Calculator is completely free, requires no registration, and gives instant results. It is the most student-friendly financial planning tool out there.
Understanding the key factors that affect your EMI (interest rate, loan amount, tenure)
An education loan EMI is influenced by three main factors: interest rate, loan amount, and loan tenure. Let us see how these elements work.
Interest Rate – The Cost of Borrowing
The interest rate is the percentage charged by the lender on your education loan. A higher interest rate increases your EMI, while a lower rate reduces it.
For example
If your loan is ₹20,00,000 for 10 years:
- At 6% interest, EMI = ₹22,204
- At 8% interest, EMI = ₹24,266
A 2% increase in interest raises your EMI by ₹2,062 per month.
Loan Amount – How Much You Borrow
The loan amount or principal is the base amount you borrow. Naturally, a higher loan amount leads to a higher EMI.
Loan Tenure – The Repayment Period
The tenure means the loan duration. It is the number of years you have to repay the loan. Usually, it stretches between about 8 and 20 years. A shorter tenure increases EMI but it reduces overall interest.
Therefore you have to strike the right balance between all three. Not too high an amount, not very long tenure and a medium rate of interest is ideal for an education loan.
Also Read: Education Loan in India: Interest Rates, Process, Best Banks & More
How GradRight’s EMI calculator helps you choose the right loan amount and tenure
Selecting the right loan amount and tenure is crucial for managing your education loan. Borrow too much or take up a longer loan tenure and you have to pay far more than you anticipated. This is where GradRight’s EMI Calculator makes all the difference. It helps you:
- The calculator allows you to test different loan amounts
- You can instantly see how they affect your monthly EMI
- By adjusting the principal amount, you can determine the sweet spot
- The EMI calculator lets you compare shorter versus longer tenures
- You can effortlessly and quickly compare multiple scenarios
With GradRight’s EMI Calculator, you can confidently embark on education loan planning.
How to use GradRight’s EMI calculator for better financial decision-making
When it comes to education loan planning the devil is in the details. GradRight EMI Calculator helps you make informed decisions. Here’s how you can use it to your advantage:
Estimate Your Monthly EMI Instantly
Enter your loan amount, interest rate, and tenure. The calculator will immediately display your EMI amount. This helps you understand how much you’ll need to set aside each month for repayment.
Compare Different Loan Scenarios
Do you have offers from multiple banks and lenders? Adjust the loan amount and tenure to see how different combinations affect your EMI.
Avoid Over-Borrowing
By using the EMI calculator properly you can borrow only what you need. This helps you reduce unnecessary financial stress after graduation.
Frequently Asked Questions
1. How does GradRight’s EMI Calculator work?
The EMI calculator is only among many GradRight tools. The calculator uses advanced JavaScript for calculating the EMI and other metrics. This is presented through an easy-to-use UI with sliders.
2. What factors are considered when calculating my EMI through GradRight?
Gradright’s EMI calculator considers three criteria
- Loan amount
- Loan interest
- Loan tenure
It shows the EMI, total repayment, and interest repayment.
3. How can GradRight’s EMI Calculator help me plan my loan repayment better?
Using the calculator you are able to:
- Plan your EMI and plan your budget
- Take the right amount of loan
- Compare various different loan scenarios
4. Is GradRight’s EMI Calculator free to use?
Our EMI calculator is absolutely free to use. You do not need to sign up or offer any personal details.
5. Can I use GradRight’s EMI Calculator for all types of education loans?
It is an ideal tool for all types of education loan planning. You can use it for loans as low as ₹1 lakh and as high as ₹5 crores. It allows tenure of up to 20 years and an interest rate of 6 – 15%.
