How to Calculate EMI for Student Loan Abroad: Formula, Examples

The education loan calculator is a simpler and more transparent tool that you need to plan your study abroad journey before it actually starts. You can try the student loan EMI calculator by putting different information about your loan. It is a completely free instrument.

Education Loan Calculator is a popular and easy-to-use online financial tool that allows you to calculate the monthly instalments of your study loan. It gives you an overview of the amortisation schedule that shows the breakdown of EMI paid against the student loan you’ll borrow. This helps you understand an education loan's total cost by adding interest and outstanding amounts.

Almost every student who is planning to study abroad faces the issue of funds to pay the education expenses. An education loan EMI calculator is a simpler and more transparent tool that you need to plan your study abroad journey before you actually start. The student loan EMI calculator is a free instrument where you can customise the amount and tenure to get results according to your needs.

This article will help you to select the best education loan in India. By the end of this blog, we will cover the information related to the advantages of using an education loan calculator, including tips on how you can use this tool effectively. 

Related Articles

• How to Repay Student Loans Faster?
• What is Form A2

How to Calculate the Educational Loans EMI?

To calculate the education loan EMI, you need to use the following formula.

• Fomula to Calculate Education Loan EMI : [P*R*(1+R)^n]/[(1+R)^n-1]

Where P represents Principal Amount, R represents Rate of Interest, and n represents Time or Tenure. 

For Example, A student borrowed an education loan of INR 10 lakhs with an average interest rate of 9% for 2 years.

• P- 10,000,00
• R- 9/100/12 (You convert to months)
• N- 24 months

EMI= [10,00,000 x 9/100/12(1+9/100/12)^24] / [(1+9/100/12)^24-1]= 45,685

How to Calculate Interest on Education Loan?

You understood the process of calculating the EMI on an Education loan. Now, it is important that you know how much extra money you are paying than your education loan. 

• Principal Amount- INR 10,00,000
• EMI- INR 45,685
• Duration - 24 Months

• Calculation: 45,685 * 24 -10,00,000 = INR 96,440

What is An Education Loan Calculator?

There are many banks and financial institutions in the market that offer student loans to students. The interest rates of education loans and the offers of these institutions are different. It is tough and time-consuming to evaluate all offers to choose the ideal one. Here, an education loan calculator comes in the frame to make your work effortless.

You can find many websites that offer a free study loan EMI calculator. Here, you can put the amount and other details to find the actual cost of the study loan. You can customise the details and use this tool as many times as you want.

Related Articles

• Government Education Loan Schemes
• How to Choose Your Bank for Education Loan

How Does the Education Loan Calculator Help You?

Now, let us understand how a student loan calculator is helpful for you. The moment you decide to borrow a study loan, the first question that comes to your mind is the monthly EMI.

The education loan interest rate calculator helps you to get the EMI by changing the rate of interest and amount. It is easy to use, quick and free. It is easy to make a monthly budget by knowing EMI and interest rates.

Benefits of Using Education Loan Calculator

Below, we have mentioned the top advantages of the student loan EMI calculator;

1. Precise Estimation of EMIs: Students can get an accurate amount of EMI that they will repay. You can easily understand the total cost and total interest.
2. Easy to Use: These smart calculators are user-friendly. All you need to do is put all the required information there and get an EMI and a detailed amortisation schedule.
3. Loan Offer Comparison: With the help of an education loan calculator, you can compare different loan offers in just a few minutes.
4. Easily Budget Planning: Helps you to know your repayment schedule with your financial situation. So, you can select what fits your budget.
5. Improves Financial Awareness: Makes you more informed about student loan costs. It means you will be well aware of any hidden charges, and you can avoid them.

Also Read: Student Loan Vs Self Finance

Steps to Use the Educational Loan EMI Calculator?

To use this online tool, you need some information such as principal amount, Rate of Interest (ROI), and tenure. Below, we have mentioned a step-by-step process to let you know how to use the educational loan calculator.

• Figure out the Amount You Want: It is the first step that you should focus on. Know the total amount that you need to study abroad or in India.
• Keep Currency Conversion in Mind: As an Indian student, if you want to study abroad, then know the precise amount with the help of the exchange rate of Indian Rupees to the currency of any country.
• Enter Tenure: Tenure of the loan amount is the number of years for which you need to repay the student loan.
• Rate of Interest: Banks offer student loans at flexible or fixed rates of interest. For example, the SBI education loan interest rate is 9.45% per year(July 2025).

Also Read: Mistakes to Avoid While Applying for Student Loan

Top Banks to Offer Student Loans

Here are the top education loan providers that offer education loans for higher education in India or abroad. Keep in mind that the rate of interest and offers are different for studying in India and abroad.

• State Bank of India
• Axis Bank
• Union Bank of India
• ICICI Bank
• IDFC First Bank
• Credila Financial Services

 If you have any queries or want to ask anything related to this, feel free to connect with us. Also, you can mention your query in the comment box below. Also, you can Apply for education loan through Shiksha Study Abroad.