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Complete EMI Schedule
Education EMI calculator
EMIs include both principal and interest payments. It is the total amount you will pay each month until the loan is completely paid off. The EMI is usually fixed for the duration of the loan. A large portion of your repayment would go to interest at the start of your loan. As you repay the loan, a greater portion will be applied to the principal component of the loan.
You can use the Educational loan EMI calculator if you prefer to know the EMI you will be contributing each month to an education loan before applying for it.
Formula to calculate the education loan amount
Below is the formula to calculate the education loan amount:
EMI = [P*R(1+R)^n]/[1+R]^n-1
P = Principal amount
R = Rate of interest
N = Tenure
Let us look at an example to see how to calculate the education loan EMI.
Miss Sheetal takes out an Rs. 15,00,000 education loan with an annual interest rate of 10% for a period of two years. The EMI will be calculated in the following manner:
P = 15 lakhs
R = 10%
N = 2 years
The EMI will be 69,217.
What is an Education Loan?
An education loan is a sum of money borrowed to cover the costs of postsecondary education or higher education. Tuition, books and supplies, and living expenses are all covered by education loans while the borrower is pursuing a degree. Payments are frequently deferred while students are in college, and depending on the lender, they may be deferred for an additional six months after graduation.
Benefits of Education Loan
Following are the benefits of an education loan:
- Financial benefits: Choosing an education loan relieves the strain on your family's savings and eliminates the need to liquidate forms of investments like fixed deposits, mutual funds, or bonds. Furthermore, interest on an education loan is tax deductible under Section 80 E of the Income Tax Act of 1961.
- Payment after completion of education: Students are only required to repay their loans once they have completed their studies. Furthermore, the repayment schedule can be used as a guideline when planning medium and long-term finances.
- Expenses covered: Loans for study abroad cover not only tuition, but also living and travel expenses, study materials, a student laptop, and other expenses.
- Simple repayment terms: Banks provide reasonable interest rates on education loans, with preferential rates available for top-ranked universities and institutes. They also provide flexible collateral and co-borrower terms to make loan repayment process easy
- Building of financial prudence: Obtaining an education loan allows students to pay for their own education without relying on family. Furthermore, when your child repays a loan, they begin building their credit history. A good credit history will enable them to obtain more affordable loans in the future.
What is a Paytm education loan EMI calculator?
The Paytm education loan EMI calculator displays the monthly education loan EMIs that you must pay to the lender. The EMI you will pay the bank is determined by the amount borrowed, the interest rate charged by the bank, and the term of the loan. If you enter the correct inputs, the education loan EMI calculator will display the correct monthly repayments. The education loan EMI calculator consists of a formula box and three sliders that display the loan amount, loan tenure, and interest rate. After you enter your information, the calculator will calculate the EMI (Equal Monthly Instalment) amount you must pay to the bank each month in order to repay the education loan.
Benefits of Education Loan Calculator
The following are some of the most important benefits of using the educational loan EMI calculator:
- Your required EMI payment will be displayed to you instantly by the educational loan EMI calculator.
- You can use it to help you set up a spending plan and start saving money for your financial objectives.
- You will also learn about the loan's principal balance. This will assist you in managing your finances.
- Additionally, you are free to use this calculator wherever you'd like.
- You will be given a clear breakdown of the monthly EMIs you will be paying.
How can a Paytm education loan EMI calculator help you?
You can use the following formula to calculate your education loan EMI: [P x R x (1+R)N]/[(1+R)N-1] where P, R, and N are variables. This also means that the EMI value will change whenever one of the three variables is changed. The letter 'P' stands for Principal Amount. It is the original loan amount provided by the bank on which interest will be calculated. R' is the bank's interest rate. N is the number of years allotted to you to repay the loan.
How to use a Paytm education loan EMI calculator?
The Paytm education loan EMI calculator is a digital tool for calculating the monthly amount owed to the lender (bank). You must use the sliders to adjust the values for Principal Amount (P), Time Duration (N), and Rate of Interest to calculate the EMI applicable to your loan amount (R). Follow the given steps to calculate your EMI Amount:
- Move the slider or enter the loan amount
- Next, you decide on the loan's duration in months.
- Enter the interest rate or move the slider.
- The calculator displays the total amount due, total interest, and the due EMI.
- Change the input sliders at any moment to recalculate your EMI.
- Moving the sliders will immediately compute your EMI.
Amount: This is the amount of money you intend to borrow from the bank. Enter or drag the slider for the education loan amount to see the EMI on the principal amount.
Tenure: Tenure refers to the amount of time you will have to repay the loan. The longer the loan repayment period, the lower the EMI; the shorter the period, the higher the EMI amount. Enter the tenure to get an exact or nearly exact EMI amount.
Rate of interest: Different banks charge different interest rates on the principal loan amount. As a result, you must enter the interest rate charged by your bank or may be charged by your desired bank in order to calculate the EMI.
Rate of interest: Different banks charge different interest rates on the principal loan amount. As a result, you must enter the interest rate charged by your bank or may be charged by your desired bank in order to calculate the EMI.
By providing all of these details, you will learn about the EMI you will be paying for the loan amount. All of these details can be edited as needed.
Frequently Asked Questions
FAQs
The first disbursement of the loan requires the submission of several important documents. These include a demand letter from the college or university, a duly filled and signed Disbursement Request Form (DRF) by the applicant and co-applicants, and a signed copy of the Loan Agreement, which includes the Post-dated Cheque (PDC), the Standing Instruction Request, the Delivery-cum-Waiver Letter, and the Demand Promissory Note.
Additionally, the applicant and co-applicants must sign the sanction letter and provide a bank statement that provides details of the transaction, as well as receipts for any margin money paid to the college or university. If collateral security is applicable, the necessary documentation must also be submitted.
For cases involving overseas institutes, the applicant and co-applicant (if applicable) must sign Form A2. In the case of purchasing foreign currency, Form A2 must be signed by the applicant or co-applicant.
These documents are crucial for the first disbursement of the loan, and it is important to ensure that all the required forms and signatures are provided accurately and completely.