How To Find Cheapest Education Loan Using Online EMI Calculators

    Updated on: 11 Aug 2022


    Studying abroad involves a substantial amount of financial investment. Many opt for student education loans to meet the cost of their graduate studies. This involves connecting with several loan providers and deciding which of their loan is most suited for your needs.

    Any plan of loan repayment requires a clear picture of your EMI. In a way, the awareness of your EMI calculations is a key component of your overall financial plan especially procurement and repayment of an education loan. If well planned, you can save a substantial amount of money by choosing the cheapest education loan, and tools like online EMI calculators can help in doing that. Read on to know-how!

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    What Is An EMI?

    EMI or Equated Monthly Instalment refers to a fixed amount due to the lender by the borrower on a monthly basis.

    Simply put, it has 2 components:

    • one is from the principal sum you borrow
    • another is from the interest charged on that principal sum

    How Is My Education Loan EMI Calculated?

    EMI calculation is instrumental in predicting the financial liabilities placed by the education loan on the student. Conventionally EMI calculation is done by applying a complicated formula related to the Principal sum borrowed, the monthly rate of interest, and the number of months or tenure of the loan.

    What Are The Challenges of EMI Calculations?

    1. Long and Cumbersome Calculations: If you are planning to take a loan or trying to decide on the best loan offers; you will have several variables such as the difference in rates of interest or the duration of the loan. For each variation, you will have to manually calculate the EMI to know what options or offers are best for you.
    2. Difficulty in incorporating special features: Another challenge is, that conventional formulae for EMI calculations do not take into account, special features that come with education loans such as the moratorium period where you don’t have to pay the loan or EMI pre-payments. Many loan providers offer unique disbursement plans to suit your requirement. This will make your EMI calculations even more complicated.
    3. Hard to Experiment and know all the options: Most traditional methods and tools of EMI calculation will give you only the total amount you pay at the end of your EMI period in addition to the monthly sum you will pay as your EMI. They will not be able to tell you how much of that amount specifically is the interest you are paying.

    So, as a borrower, it becomes quite cumbersome to reach a decision on the ideal loan option and we end up going with whatever we are advised to do by the loan provider or worse, make decisions with our inaccurate findings.

    What Are Online EMI Calculators?

    Online Education Loan EMI calculators have been developed to help individuals plan their EMI payouts and calculations easily. Such online EMI calculators, allowing you to enter variables like the sum borrowed (principal), your rate of interest and the duration of the loan, and provide you with the EMI amount within seconds. You can enter different variables to see what is the most ideal EMI plan for you.  You can also find education loan interest calculators that are designed to specifically calculate the education loan interest you will pay in various scenarios.

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    How Do Online EMI Calculators Help Me?

    These online calculators are credited with quick calculations. All one has to do is enter various components we are considering and within seconds, we can find our actual repayment schedule. At the micro-level, we will know our EMI at the macro-level we will know what we will eventually pay at the end of the loan tenure.

    The biggest advantage of Online Education Loan EMI calculators is that by entering different variables, you can reach an informed and definitive conclusion about how much of your loan, you need to pay when to be able to repay your loan in the best possible manner.

    Today, we see that with the increasing cost of higher education, there are many loan providers in the market to help aspiring students actualize their academic dreams. With the help of online EMI calculators, you can make informed decisions about where to procure your education loan from.

    At first sight, it will seem that almost all the loan offers and plans look identical, but the truth is that even a small difference in the interest rates or tenure can make a big difference to your plan. You can try various combinations in the online calculators before you decide on your exact loan tenure, EMI and ultimately the loan provider.

    Here is an example of how a small difference in the rate of interest impacts your loan plans.

     

      Sum Borrowed  

      Interest  

      Duration (Years)  

    EMI

      Total Repaid  

    20,00,000

    14%

    15

      33160  

    59,68,862

    20,00,000

    13%

    15

    33062

    55,91,112

    20,00,000

    12%

    15

    29044

    52,27,928

     

    You will see that even though your EMI has decreased only marginally with the reduction of the rate of interest, the impact on the total amount you are repaying is running into several lakhs.

    There can be many variations in the way you plan your education loan. All these variations will definitely have a cost impact on your loan. So, by using a free EMI calculator you can actually save money.

    Is your Online EMI Calculator The Best-Fit For You?

    Education Loans have many customizations, these days most are tailor-made for the student’s need with perks like prepayment of EMIs and flexible payment options. In order to be able to compare such loan propositions, one must make use of a dynamic EMI calculator that offers more space for customizations and special criteria; so as to get a more accurate estimation of the loan payment schedule.

    Calculate Your Education Loan EMI Check Here

    What Is The GyanDhan Education Loan EMI Calculator?

    The GyanDhan EMI Calculator is a flexible online education loan EMI calculator that is not tied down by the loan plans of any particular institution or bank. You can use your own inputs to plan your finances and repayment schedule. As an online EMI calculator dedicated specifically for education loans, it offers several unique customizations and features that simplify complicated calculations and yield the most accurate results for you.

    How Does It Work?

    This EMI Calculator allows you to factor in variables such as your course duration and whether you plan to pay EMIs while you are studying. It also helps you identify ideal loan disbursement plans, i.e; how much of the loan amount is released by the lender at what time within the period of the loan.

    To illustrate with an example: for a 24-month long graduate program:

    • If your Principal amount is Rs. 10,00,000/-
    • The rate of interest is 10%
    • Duration of loan is 10 years

    then, you can enter the above details into the GyanDhan Online Education Loan Calculator to find that:

    • Your EMI will be Rs. 15,530
    • The total interest paid will be Rs. 6,88,330
    • The total payment made will be Rs. 18,63,350

    Calculating variations with GyanDhan EMI Calculator

    Now, if we change one of the inputs, say the duration of the loan; and reduce it to 5 years in the calculator. Then, according to the GyanDhan Online Education Loan Calculator,

    • Your EMI will be Rs. 24,970
    • The total interest paid will be Rs. 3,22,900
    • The total payment made will be Rs. 14,97,900

    Any conventional calculator will tell you that the reduced tenure will increase your EMI, but you may miss out on noticing that eventually you are paying less interest and therefore there is a significant difference in the total amount repaid to the bank.

    You can similarly enter various rates of interest you find and enter that to check how it impacts your monthly and total repayment. Then, based on your future plans, expenses, short and long-term career goals, income, etc you can choose the most suitable payment plan for you.

    Customizing Calculations with GyanDhan Education Loan EMI Calculator

    As an Online EMI Calculator specifically designed for student education loans, you can further customize your calculations to include any of these additional feature

    • Custom disbursement plans
    • Grace period
    • Interest / principal payment during the study period

    The GyanDhan EMI Calculator has the distinction of being the only online tool offering such customizations that add value to your financial plans by giving you more clarity on what lies ahead for you as you plan to repay the loan. 
     
    Remember, careful planning is the key to a healthy financial statement and easy loan repayment. To equip yourself with reliable calculations to reap maximum benefit from your loan procurement, try the GyanDhan student loan calculator today

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