In search of the quality of education, a huge number of students are migrating to a foreign country for getting the best quality education. For pursuing higher education, overseas universities offer degree courses in various fields. To finance the same, some students have their savings, whereas some prefer to avail student loan for studying abroad.
Once the student has availed an overseas education loan, the repayment period begins, and it is when the EMI plays a crucial role. Students must pay the EMIs i.e., Equated Monthly Instalments during the repayment period of an education loan.
Advantages of Using an EMI Loan Calculator:
An EMI calculator is an easy tool that allows the applicants to visualize the amount required to be paid to the institution. Here are some of the benefits of using an EMI loan calculator:
- Simpler: Only put in your principal loan amount, tenure and education loan interest rate.
- Ensures good credit score: Gives clarity on EMI payments that helps in maintaining a good credit history.
- Finance planning: Easy to plan on the budget more efficiently and hence borrow the required amount.
- Easy comparison: This makes it convenient and easy to compare interest rates offered by different lenders.
Let us understand the term EMI:
Equated Monthly Instalments are called EMI. It is a monthly payment towards the repayment of an overseas education loan. It includes the monthly contribution towards both principal and interest on the loan amount.
In the beginning stages of an EMI, the interest component constitutes the huge portion and as the loan borrower progresses along with the tenure of an education loan, the portion of the interest payment reduces, and the contribution towards the principal repayment increases. Here is the formula to calculate EMI:
EMI = P × r × (1 + r)n/((1 + r)n – 1) where P denotes the loan amount, r denotes interest rate, n denotes loan tenure in number of months.
Calculate the EMI:
There are various tools available for calculating the EMIs on an overseas education loan. To calculate the loan EMI, the applicant simply has to insert the principal amount, ROI and the loan tenure in the EMI calculator that eventually helps the borrows in getting an idea of how much EMIs and the total amount are required to be paid to the financial institution.
A majority of the students use EMI Calculator for Overseas Education Loan to find out the exact loan amount that is required to be paid to the financial intuition. It is simple and easy-to-use that helps them in getting a clear idea about how much loan amount is required to be paid to the bank.
We at Elan Loans help students in all their financial needs, right from choosing the right financial institution to applying for an education loan, to getting it sanctioned. If you are someone willing to apply for an overseas education loan and require assistance for overseas education loan process, we will advise you to get in touch with us at ELAN Loans. Our loan experts shall assist you.
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