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Education Loan EMI Calculator - Interest Rates All Bank 2023

Education Loan EMI Calculator - Interest Rates All Bank 2023

Calculate Your EMI
Monthly Installment
Total Payable Amount
What is EMI?

EMI or Equated Monthly Installments is simply the financial installment that a person has to pay on a regular monthly basis against an outstanding amount of loan within a fixed time period. An EMI facility helps a person pay off a loan easily in the form of installments, allowing them to afford the loan.

EMIs and Educational Loans

Educational Loan is one of the most sought loans as they help numerous students to pursue their higher education every year. An education loan is provided to a student by a bank on the basis of a number of factors including

  • Student‘s Academic Background
  • Co-Borrower‘s Financial Background (In Most Cases the Guardians of the Student)
  • Student‘s Admission to a University/College
  • Stipulated Time within which Student can pay off the loan etc.

An educational loan provides a student with a number of advantages and benefits such as the ease of paying the loan in easy installments, an extended moratorium for paying the loan off, lower interest rates and the ability to afford one‘s educational course/college of choice without any compromises. Taking an education loan additionally takes off the burden of heavy financial expenses from the parents/guardians of the student.

When taking an educational loan, students can pay it off over a period of monthly installments or EMI through easy financing options. In some cases, some student loans may also be offered with zero or very low interest rates.

You can easily calculate the EMI of your educational loan if you know the principal amount (P), the rate of interest on your education loan (R) , and the time period for your loan (in terms of months for paying the loan off). Use the formula below to calculate the total EMI option for your education loan:

If P is the principal amount of loan, r is the interest rate on the loan and n is the number of months over which you have the pay the loan off, then the monthly EMI will be calculated as follows:
EMI = P x r x (1+r)^n ÷ ((1+r)^n-1)
Common Eligibility Criteria

Education loans in India can be applied for by any Indian resident student along with valid credentials and ID proofs. There are certain more specific factors that many banks take into account while issuing education loans to students such as:

  • Student‘s Academic and Personal Details to Ensure that they meet the criteria for applying to student loans.
  • The Financial Background of the Co-Borrowers which are the parents/guardians of the student in most cases.
  • The Period of Course Completion
  • College/University of Admission

There may be other detailed application criteria for students to check before applying for an education loan. The students can additionally benefit by researching government subsidies, scholarship facilities etc. to make education more affordable for themselves.

Education Loan Process

College costs have risen dramatically in recent years, and not everyone can afford it from savings. Education loans provide students with the money they need to pursue their dreams of higher education despite a lack of funds. Here's a step-by-step guide on the education loan process:

  1. Determine the Loan Amount: To determine how much money you will need for your education, first determine how much college costs by researching tuition rates and searching financial aid listings.
  2. Choose the Lender: Various banks and financial institutions offer education loans. First, research the loan offerings of different lenders, then compare them to find one that best suits your needs.
  3. Check Eligibility: Each lender has its own set of requirements for education loans. Review the guidelines to ensure you qualify for age, nationality, academic qualifications and other factors.
  4. Submit Loan Application: When you have chosen the lender, fill out and submit the loan application form with accurate and complete information. For example, include your school's admission letter, identity proof, etc.
  5. Loan Approval: After you submit your loan application, the lender will decide whether to approve or deny the request and notify you of its decision.
  6. Loan Disbursement: After accepting the loan offer, the lender will disburse funds directly to your educational institution, as needed, according to its schedule for tuition payment.
  7. Repayment: You must repay your student loan as soon as you have finished school or obtained a job, according to the repayment schedule specified when you took out the loan.
Education Loan Interest Rates in Different Banks

Education Loan interest rate is a variable figure and it changes from bank to bank depending on the loan amount. A list of the interest rates on education loans in some of the banks of India is provided here.

Bank NameInterest Rate
State Bank of India (SBI)8.55%
HDFC Bank9.50%
ICICI Bank11.25%
Punjab National Bank (PNB)8.55%
Axis Bank13.70% to 15.20%
Bank of Baroda11.15%
Canara Bank9.25%
Kotak Mahindra Bank9.60%
Bank of India9.25%
IDFC Bank8.50%
HDFC Credila11.5%
Interest Rates for EMIs and Education Loans

Interest refers to the money that a lender earns from lending the money. Different banks and lenders provide loans to people at different interest rates. Interest can be applied on a loan on a simple basis or compound basis.

Education loans usually have a lower interest rate than other loans so as to enable students to afford these loans more easily.The interest rates on education loans in India start from almost 8% p.a and extend upto 16% p.a depending on the bank you choose as well as the loan amount and moratorium period.

How does an EMI Calculator Work?

An EMI calculator works by quickly calculating your monthly EMI amount and the total payable amount with the help of the total loan amount (i.e. your Principal), the interest rate on the loan as well as the tenure of your loan in terms of months.

To use an EMI calculator easily, you need to feed three basic details into the calculator: your principal loan amount, interest rate of the loan and the tenure of loan payment.

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FAQs EMI Calculator

The full form of EMI is Equated Monthly Installment.

For an educational loan the monthly EMI can be calculated using the formula:

EMI = P x r x (1+r)^n ÷ ((1+r)^n-1)

Where P= Principal Amount

r= Rate of Interest p.a

n= Number of Months within which loan is to be paid off

The monthly EMI for an educational loan will mainly depend on the total amount of money you have loaned, the interest rate as well as the tenure of loan payment.

There is no fixed upper amount till which you can get an education loan. Many banks provide students with education loans upto Rs. 30 lakhs based on the co-borrowers‘ financial background as well as cost of education that the student is seeking.

An education loan calculator is a calculator that finds out the monthly EMI amount that you will have to pay based on the principal loan amount, the interest rate on the loan and the number of months over which the loan is to be paid off.

An education loan calculator calculates your total monthly payment amount, i.e. your monthly EMI and your total payable amount (including interest) on the basis of the total principal loan amount, interest rate and loan tenure.

The conventionally offered interest rate for education loans in India ranges from about 8% p.a. upto 16% p.a. depending on whether you are taking the loan from a government or private bank.

The principal amount here is 10,00,000, the duration is 60 months, and the interest rate at SBI is 8.55%. Thus, the monthly EMI would be around 20540 INR.

The current interest rate of education loans at ICICI is 11.25%. According to this, if you take a loan of 5 lakhs from ICICI for 2 years, the total payable amount will be 560687 INR with a monthly installment of 23362 INR.

At HDFC, the interest rate on education loans is 9.50%. So, on the 8 lakhs principal amount, the total payable amount after 3 years would be 922548.95 INR.

The interest rate at PNB on education loans is 8.55%. Thus, for 15 Lakhs for 3 years, the total payable amount will be 1705898.39 INR and the interest paid will be 205898.39 INR.

The current education loan interest rate at the Bank of Baroda is 11.15%. According to this, if someone has taken a loan of 12 lakhs from the Bank of Baroda for 3 years, the total payable amount will be 1417383.24 INR with a monthly installment of 39371.76 INR.

At HDFC Credila, the education loan interest rate is 11.5%. So, on the 15 lakhs principal amount, the total payable amount after 2 years would be 1686251.35 INR.

You can easily calculate your interest rate for the education loan calculator IDFC by following these simple steps:

  • Go to the EMI Calculator
  • Enter the loan amount with the duration you will repay the loan
  • Click on the “calculate” button

NOTE: the current interest rate of IDFC education loan is 8.50%
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