Education Loan On Property Calculator

The investment that can potentially give the best returns in your lifetime is your education. It can unlock the door to a better lifestyle not just for you but also for your family. According to a report by the Higher Education Policy Institute, postgraduates earn 18% higher on average when compared to graduates.

By pursuing your education, you are improving your lifestyle and opening the doors to careers in various fields.

While the cost of education can be substantial, funding these expenses is feasible through educational loans, which you can secure with a property. This article explores how our education loan on property calculator will help them choose the perfect education loan.

What is an education loan?

You can avail of an education loan for financing higher education expenses. Its value can go up to ₹1 crore. Under exceptional circumstances, you can secure up to 100% financing for higher education. Their tenure can exceed 10 years, and you can even get a moratorium period during which you do not need to repay the loan.

Some lenders will offer to cover expenses, such as travel expenses.

One can get education loans for pursuing their education at an undergraduate level, postgraduate level, or career development. One can get education loans for domestic and overseas education.

You might have to put up property, deposits, or securities as collateral or get a guarantee letter from a bank employee.

One crucial aspect of managing an education loan is the ability to plan for timely repayments. Here, an education loan prepayment calculator comes into play. This tool helps borrowers estimate the impact of making extra payments towards their loans before the scheduled due dates.

What is the education loan calculator?

An education loan calculator is a fantastic tool to help you understand your EMIs after taking an education loan.

The education loan calculator, including the education loan simple interest calculator, empowers students and their families by providing transparency and clarity into the financial implications of an education loan. It guides borrowers in making well-informed decisions, effective financial planning, and ensuring a smooth loan repayment journey.

How do education loan calculators work?

While using Shriram Finance’s education loan calculator, you only need to input your education loan amount, tenure in months, and the applicable interest rate. Shriram Finance’s education loan calculator will calculate your EMIs instantly. One can also view the total interest component of their EMIs and the principal amount.

The formula for the education loan calculator

To calculate the EMIs on your education loan, the education loan calculator will use the following formula:

EMI = [Principal Amount X Monthly interest rate X (1 + Monthly interest rate) ^ Number of months] / [(1 + Monthly interest rate) ^ Number of months - 1]

How to use the education loan EMI calculator?

To use the education loan EMI calculator, kindly follow these steps:

STEP 1 – Enter your principal education loan amount

STEP 2 – Enter the tenure of the loan

STEP 3 – Enter the interest rate for the loan

STEP 4 – Click Proceed and see the education loan EMI and the breakdown of interest expenses and principal amount paid in an EMI

You can use an educational loan EMI calculator for various use cases. You can check your interest rates for different tenures. This way, the abroad education loan EMI calculator online doubles up as an education loan interest calculator. Interest rates on educational loans will differ from lender to lender. You can find the best option by calculating the interest expenses incurred on taking loans from different lenders.

Suppose ABC Bank is giving out an educational loan for 10% p.a. for 10 years, and XYZ Bank is giving out an educational loan for 7% p.a. for 15 years. To keep things simple, in both cases, let us keep the principal amount at ₹10 lakh.

By using the educational loan EMI calculator, you can acquire the information contained in the following table:

In this case, if one would like to go for a lower EMI, they can choose XYZ Bank, whereas if they would like lower interest expenses, they can choose ABC Bank.

Similarly, one might get confused about which tenure to choose with the same bank. Suppose they can get an educational loan of ₹10 lakh at an interest rate of 12% p.a., and they can choose tenures of 10, 12, 15, or 16 years.

Once again, after using the education loan instalment calculator, they can acquire the information contained in the following table:

As one can see, when they increase the tenure from 10 years to 12 years, the EMI falls by more than ₹1,000, and the total interest expenses increase by nearly ₹1.7 lakhs. But, if they further increase the tenure, their EMI will fall similarly, while an individual's interest expenses increase by nearly ₹3 lakhs. So, unless extremely necessary, they should not increase their tenure by more than 12 years in this specific case.

Benefits of education loan calculator

Quick calculations

Shriram Finance’s loan calculator for education loan lets you see how much EMI you would need to pay and how much will go to interest instantly. It is significantly faster than human calculations.

Interest expense breakdown

The loan for education EMI calculator helps you understand how much you would be paying as interest every month. It is a valuable feature if you would like to keep your interest expenses down.

Easy to use

To calculate the education loan instalment with Shriram Finance’s calculator, you only need to enter the tenure, interest rate, amount, and EMI amount on your screen.

Understanding Settlement:

The education loan settlement calculator helps users comprehend the settlement process better. It assists in evaluating whether a settlement offer from the lender is favourable and financially viable.

Testing out different scenarios

More often than not, you will be offered educational loans where interest rates and tenures are different. Different loan offers make comparing education loan terms and conditions harder. In such a case, you can find the EMIs and interest expenses through the educational loan calculator and check different use cases.

Conclusion

The education loan EMI calculator is a convenient tool to compute your EMI and interest expenses within seconds. You do not need to worry about the formula and only have to enter the tenure, interest rate, and loan amount. You will get the education loan EMI instantly, making it easier than calculating on your own or through MS Excel. You can use the educational loan calculator to check different use cases with varying interest rates and tenures and make an informed decision.