Majority of the students now pursue their higher education with the aid of education loan. It has eased the pressure of having to pay a colossal amount at once which is a good thing because higher education is not cheap. However, before applying for a loan, you should be aware of numerous aspects related to education loan. One of the most important things that you need to know is the education loan interest rate. Additionally, you should also the process and formula for calculating the education loan interest.
You may point out that all you need to do for the calculation is use the online EMI calculator that will not only provide you with the interest rate but it will also provide you with the EMI. However, it is always beneficial to know the method of calculating it manually.
Formula for Calculating Education Loan Interest Rate and EMI
The formula used for calculating education loan interest and EMI is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
In the above formulae,
P = Education Loan Amount
R = Education Loan Interest Rate per month
N = Tenure of the Education Loan.
So, all you need to do is place the values at their appropriate places, and then calculate. The formula will help you by providing the EMIs. It will be very beneficial for you as you will able to determine the amount that you have to repay every month to the lender. Thus, you will have relevant insight to manage your financials accordingly.
Need Education Loan Urgently? Go for PaySense
People generally apply to banks as they can sanction a higher education loan amount. However, if your requirement of education loan is not too high, then you can save yourself from the tiresome approval process that requires numerous items for documentation. Download the PaySense mobile app and apply for a loan up to INR 2 Lakhs. Moreover, the education loan interest rate will depend primarily on your credit score and income among other things. You can even use the online EMI calculator to ascertain the amount that you will owe each month. Your days of waiting in queues for loan will be over once you download the PaySense mobile app and apply for a loan.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs