An education loan EMI calculator helps higher education aspirants in planning their repayment schedule which in turn could be useful in having an absolutely hassle-free education loan repayment process. With the advent of interactive technology, a lot of lenders, especially public banks, have come up with their own education loan EMI calculators. This article aims to provide a detailed comparison of the education loan EMI calculators of each of these lenders. In addition to that, the article will also explain certain aspects of the education loan repayment process.
The education loan emi calculator is an online tool that allows you to calculate how much money will have to be paid every month towards an education loan repayment. The online calculators provided by various different lenders are designed according to their respective repayment policies. Let us take a look at what the education loan these calculators offer to education loan applicants and in what ways does it benefit them in the longer run.
SBI Education Loan EMI Calculator
SBI is at the forefront of the banking industry in India. Hence, it is quite understandable when education loan applicants choose the bank in order to borrow student loans from. The education loan policies drafted by the bank are quite on the student-friendly side and hence, the education loan schemes offered by the bank is often favored by borrowers.
The SBI repayment policies allow candidates to avail a moratorium on their education loan interest payment. In the education loan sector, a moratorium period refers to a break in the repayment period during which borrowers are expected to find ways to gather the funds for repayment. This provision has been introduced by the RBI after having considered the possibility that all students may not find it easy to land a job post their course abroad. Under such circumstances, it becomes difficult for them to begin their education loan repayment. Although the moratorium period provides temporary relief to students from beginning their education loan repayment early on, it is not free of interest. Public banks calculate the interest accumulated during the moratorium period while calculating the total education loan amount to be repaid on the education loan EMI calculator.
An education loan EMI is calculated by taking into account three important parameters, Principal amount, Annual interest rate and total loan tenure. Most of the education loan EMI calculators calculate the EMI based on the equation
EMI = P × r × (1 + r) n / ((1 + r) n – 1)
where P = Loan amount, r = interest rate, n = tenure in number of months
When candidates enter each of the above parameters into the fields provided in the SBI education loan EMI calculator, the results are displayed below the page in two different formats, the total interest applicable and the monthly amount to be paid by the borrower. Additionally, candidates may also come across an EMI chart which is a graphical representation of how the online EMI calculator could help in determining the monthly repayment amount.
The online platform of SBI also offers some additional tools to students who need help in planning their amortization schedule. There are online aids such as the repayment schedule which calculates the total repayment amount on the basis of whether borrowers had begun their repayment during the course or after the course. This tool helps candidates in understanding the exact duration of their moratorium period, it indicates the outstanding amount at the beginning of the repayment tenure and the monthly instalments for a 10 year period and a 12 year period respectively.
Despite these aids, if you are still finding the whole process to be confusing, reach out to the financial team of WeMakeScholars for help. Let us try and understand the education loan EMI calculator of the Bank of Baroda next.
Bank of Baroda Education Loan EMI Calculator
The Bank of Baroda education loan EMI calculator is more or less similar to the SBI education loan EMI calculator. The BoB education loan EMI calculator allows candidates to calculate their monthly education loan payments by taking into account factors such as the education loan amount, the rate of interest and the total loan tenure. The final result will give the candidates a rough estimate of how much money they’d have to pay towards their education loan repayment.
Canara Bank Education Loan EMI Calculator
The Canara Bank education loan EMI calculator has been designed according to the Canara bank education loan repayment policies which are slightly different from the rest of the public banks. The repayment policies of Canara Bank allow borrowers to pay the education loan interest during the moratorium period. This particular clause is eerily similar to the repayment regulations put down by private lenders of abroad education loans. As a public bank, it is obligated to follow the regulations put down by the RBI, hence the policy of a payment-free moratorium period does apply when it comes to repaying a Canara Bank education loan. However, in reality, bank officials often persuade borrowers to begin the interest payment during the moratorium period itself.
The Canara Bank education loan EMI calculator is a basic one and it consists of the following fields:
- Education Loan Amount
- Count of the month of repayment
- The applicable rate of interest
On entering all of the above details, students get to know:
- Monthly EMI
- Total interest
- Payable amount
In addition to that, there is a pie-chart representing the details to help borrowers to understand their repayment schedule specifically. One of the major drawbacks of the Canara Bank education loan emi calculator is that it does not cater for the ‘interest payment during moratorium period’ option. It also does not count in the ‘no payment during EMI’ option as well. In order to know about the Canara bank education loan details, get in touch with the financial team of WeMakeScholars at the earliest.
PNB Education Loan EMI Calculator
To calculate your EMI in the Punjab National Bank (PNB), visit the official website of Punjab National Bank Education Loan EMI Calculator for Higher Studies and enter your loan amount, interest rate of the education loan and the repayment tenure in years. You can witness the EMI figure mentioned below. The figure mentioned below is the EMI amount you’ll have to pay every month once your repayment starts. Similar to the repayment policies of other public banks, PNB also calculates the moratorium period interest rate in terms of simple interest. The PNB education loan EMI calculator allows students the flexibility to not make any payment of interest during the moratorium period.
Now that we have listed the unique features of the education loan EMI calculators of some of the major providers of collateral-based education loans in India, let us try and understand how private lenders prefer to conduct their education loan repayment process.
Repayment Process of Education Loan Without Collateral
NBFCs offer a moratorium period on education loan repayment like government banks do. However, unlike government banks, this period is not payment-free for those who have borrowed unsecured education loans to study abroad. So, ideally, the education loan repayment of unsecured education loans borrowed from prominent NBFCs begins once candidates receive the first disbursement of their education loan.
NBFCs require students to make their interest payments during the moratorium period. The good news is that NBFCs accept the partial payments of interest during the moratorium period. Partial payment is when candidates are allowed to partially pay the interest charged during the moratorium period. This means that if you are being charged a monthly interest of Rs.10,000 per month during your moratorium period and you are unable to do so, NBFCs allow you to pay only Rs.4000 to Rs.5000, depending on their policies.
Depending on your profile, NBFCs may even ask for full payment of interest during the moratorium period. This clause is entirely up to their education loan repayment rules. The EMI loan will be deducted from your account once the moratorium period is over.
The WeMakeScholars team is closely associated with prominent NBFCs. If you are looking for a concession in your unsecured education loan interest rates, or to negotiate the repayment terms, do not hesitate to contact our team for assistance. You get to avail an automatic 0.5% reduction in your loan interest rates when you apply through us. Request a callback today to know more about other details. Information about the education loan EMI calculators of some of the prominent NBFCs and private lenders are discussed in the following paragraphs.
HDFC Education Loan EMI Calculator
The HDFC abroad education loan is one of the most sought after unsecured educational loan schemes in India. HDFC provides abroad education loans through Credila which is an NBFC and a subsidiary of the conglomerate. The Credila education loan interest rate is calculated on the basis of the Annual Percentage Rate (APR).
The HDFC education loan loan calculator for foreign education loan has a very simple interface. The fields mentioned in the education loan emi calculator are similar to those of most lenders. The HDFC bank education loan emi calculator may have a simple interface, however, when it comes to their repayment policies, this is not the case. In order to know the Credila education loan repayment policies in detail, watch episode 11 of the Loanflix web-series.
Auxilo Education Loan EMI Calculator
The Auxilo education loan EMI calculator is slightly different as compared to these calculators of most other lenders. Although the interface is similar, Auxilo has explained the relevance of each and every parameter mentioned in their EMI calculator. The Auxilo education loan EMI calculator consists of three very common parameters which are present in the education loan which calculators of most other lenders:
- Principal amount
- Education loan tenure
- Applicable interest rate
Auxilo has also listed a loan repayment calculator which helps borrowers to modify their current education loan repayment plan. The financial team of WeMakeScholars works closely with the Auxilo education loan team to facilitate an easy education loan process for borrowers. Request a callback with us today to understand the Auxilo education loan repayment policies.
Avanse Education Loan EMI Calculator
The Avanse education loan EMI calculator has a simple, easy to use interface. All that borrowers are required to do is to provide inputs such as the principal amount, the education loan tenure and the number of years of the education loan tenure.
It is important to understand that the education loan EMI calculators of most of the private education loan providers are based on the repayment policies which do not include a payment-free moratorium period and the calculation of the interest amount being made on the basis of compound interest .
The financial team of WeMakeScholars has been interacting with both public and private lenders on a much deeper level in order to facilitate an easy education loan process for most of its applicants. If you have any doubts regarding the same, feel free to reach out to our team for efficient guidance and counsel.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public / Pvt banks / NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others