Financing your studies abroad requires careful planning, and understanding your loan repayments is crucial for it. This article equips you with the knowledge and tools to navigate this aspect effectively, including an education loan calculator you can use to compare different scenarios based on changing variables like loan term, rate of interest, etc.
Important Note:
What is an education loan EMI calculator?
Planning for your studies abroad can be overwhelming. However, when you focus on the most important parts, you can keep the chaos away. For instance, most students can make better decisions when they know what exactly they’d need to repay, if they go for an education loan. This monthly repayment, of course, is the education loan EMI. Calculating it manually is time consuming. This is where an education loan EMI calculator helps. An education loan EMI calculator simplifies the process by factoring in:- Loan Amount: The total sum borrowed to finance your education.
- Interest Rate: The percentage charged on the loan amount.
- Repayment Tenure: The duration (in years) over which you’ll repay the loan.
Advantages of using the educational loan EMI calculator
Imagine setting off to study abroad and fulfilling your academic dreams. Then, reality hits – tuition fees can be high, ranging from ₹50 lakhs to ₹1.5 crore depending on your chosen country, program, and college. This can feel overwhelming, especially when it comes to understanding how you’ll manage the loan repayments.Here’s where an education loan EMI calculator brings order to chaos. Think of it as a financial translator. It takes that large loan amount and breaks it down into easy-to-understand monthly payments (EMIs). This way, that seemingly huge sum starts to feel a lot more manageable.But the benefits go beyond simply translating numbers. An education loan EMI calculator also lets you experiment with different scenarios. You can try out various loan amounts, interest rates, and repayment durations. This helps you answer crucial questions like:- How much can I comfortably afford to pay each month?
- What’s the total interest I’ll end up paying?
- What’s the maximum loan amount I should consider?
How to use the educational loan EMI calculator?
Now that you know how an education loan EMI calculator simplifies things, let’s see how it works.Think of it like a helpful friend asking you three key questions:- Education Loan Amount: This is the total amount you borrow to finance your studies abroad.
- Loan Tenure: This refers to the total duration you have to repay the loan, usually in years.
- Interest Rate: This is the percentage charged on the loan amount.
- P: Loan amount (Principal)
- R: Monthly interest rate (Interest rate divided by the number of months in a year)
- N: Loan tenure in months (Number of years multiplied by 12)
Compare the best education loans provided by different banks and NBFCs
Bank/NBFC | Interest Rate Range | Loan Type | Loan Amount Range |
State Bank of India | 8.30% to 11.50% | Need-based term loan up to 15 years. | Up to INR 1.5 Crore |
Punjab National Bank | 8.55% to 11.25% | Need-based term loan up to 15 years. | Up to INR 1 Crore |
Bank of Baroda | 9.10% to 12.45% | Term loan need-based funding. | Up to INR 80 Lakhs |
ICICI Bank | 9.50% onwards | Term loan up to INR 1 crore for domestic, and INR 2 crore for international studies. | Up to INR 2 Crore |
Bank of India | 8.25% to 11.60% | Term loan need-based financing. | Up to INR 1 Crore |
Bank of Maharashtra | 9.20% to 11.05% | Term loan up to INR 10 lakh in domestic and up to INR 20 lakh for abroad studies. | Up to INR 20 Lakhs |
Central Bank of India | 8.30% to 11.25% | Term loan up to INR 50 lakh. | Up to INR 50 Lakhs |
Axis Bank | 13.70% to 15.20% | Customizable loans with flexible repayment options. | Up to INR 40 Lakhs |
Kotak Mahindra Bank | Up to 16.00% | Custom solutions based on course and institution. | Varies |
Canara Bank | 7.30% to 9.30% | Need-based term loan. | Up to INR 40 Lakhs |
Mpower Finance | Starts from 8.00% | No collateral, cosigner-free loans. | Up to $100,000 |
Prodigy Finance | Variable | Borderless credit, based on future earning potential. | Up to 100% of tuition fees |
- The interest rates mentioned are indicative and subject to change based on individual circumstances and market conditions.
- Additional factors like processing fees and variable interest rates might also apply.
Limitations of manual comparison of education loan interest rates and EMI
Comparing loans solely based on individual bank websites can be restrictive. Here’s why:- Limited Scope: You might miss out on prominent lenders or miss crucial NBFCs.
- Time-Consuming: Contacting each lender and gathering information can be a lengthy process.
- Incomplete Information: Key details like the latest offers might be unavailable.
Education loan comparison with FundRight
Here’s how FundRight empowers you:- Register and complete your profile on FundRight
- Get personalized comparisons from India’s top 15 lenders within 15 minutes.
- Secure loan offers within 2 days, potentially with interest rates that beat the market average.
- Get the support of our in-house financial advisors who negotiate on your behalf to secure favorable loan terms.
FAQs on education loan calculators
- How is an education loan EMI calculated?
- Are education loan interest rate calculators accurate?
- Which are the top education loan calculators online?
- While calculating EMI for education loan, calculator can ignore certain factors; is this correct?
- Is the education loan interest rate calculator and EMI calculator the same?
- How does this calculator help me compare educational loan offers?
- What impact does the loan tenure have on EMI?
- Can I calculate the total interest payable using an education loan calculator?
- Why do interest rates vary between banks for education loans?
- What other types of education loan calculators in India can I use?