How I can calculate the EMI for an educational loan?

POSTED BY niki ON April 15, 2015 7:51 pm COMMENTS (6)


I am planning to take an educational loan for my 2 years course for 5 years.
Course fees – 4 Lakh per year.

I will be taking 4 Lakh loan in 1st year and same for 2nd year course.

I have visited the online website for a bank and rate of interest is 10.50 % .
And the payments will start after the end of the course.

Now I want to find the emi which i will be paying after my studies for 5 years.
I tried searching for calculator but could not get one which is user friendly and easy to understand.
Can somebody point it to me?

Also, if i can pay the fees somehow by myself or family by breaking deposits(9%), Is it still a good idea to take a loan? Considering the tax benefits later and lower rate of interest for edu loan.

Hope to get an useful answer.

6 replies on this article “How I can calculate the EMI for an educational loan?”

  1. Your Monthly Education Loan EMI: Rupee image 8,598
    Monthly amount paid to your Education Loan provider

    Your loan details as specified by you
    Loan Amount : Rs.4,00,000
    Tenure : 5 Years
    Interest Rate : 10.50%
    Processing Fee : 2% (assuming as per current stats)

    Break-up of all total amount payable

    Loan Amount : Rs.4,00,000
    Total Interest Due : Rs.1,15,854
    Processing Fee : Rs.8,000
    Total Amount Payable : Rs.5,23,854

    There is no need of breaking any FD’s for the loan repayment.

    1. Thanks for sharing that Avantika

  2. BankCircle says:

    You can always check these detail on

  3. ravi says:

    Hello Nikki,

    Banks charge simple interest for the time of tax holiday / study period.
    Simple interest charged on 4Lac given in first year will be 4,00,000 * 10.5% *4 = 1,68 lac

    and on 4lac given in second year will be 1.26 lac.

    ‘total’ loan amount = 4+ 4 +1.68+1.26 = 10.94
    EMI = 24.5K

    Hope this helps 🙂


  4. Hemanth says:

    As you already know that interest on educational loan is more than the deposits u have, it is pretty simple for u to decide….. it would be good if u don’t take any loan if u and ur family can manage to pay it. Also, make sure that u will not be in problems in near future when u break this deposits….

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