Education Loan EMI Calculator

Loan Amount

₹

50K

1Cr

Interest Rate (p.a)

8% 16%

Tenure (months)

12M240M

Equated Monthly Installments (EMI)
₹ 26,097

Apply Now

Total Amount Payable

₹₹ 1,37,621

Remember, the education loan interest rate and your loan tenure are the vital deciding factors that determine loan EMI.

The EMI of your loan consists of the principal portion and the interest. In the early stages of the loan's term, a larger portion of the EMI goes towards paying off the interest. Over time, as the loan balance decreases, more of the payment is applied to the principal amount.

Axis Bank India offers education loans at attractive interest rates for a loan amount ranging from ₹50,000 to ₹75 lakhs.

Apply for an education loan today and fuel your dreams!

How does an education loan EMI calculator help?

Instead of performing complex financial calculations manually, the student loan calculator simplifies the process and presents the result instantly. Here's how it helps you plan better:

1. Determines the required monthly instalment

First, the calculator helps determine the monthly instalment required to repay the loan over the chosen term. This helps families understand whether the repayment amount fits within their monthly budget.

2. Highlights total interest payable

Second, the tool shows the total interest payable over the entire repayment period. Many borrowers underestimate how much interest accumulates during long loan tenures, and this calculator helps make that cost visible.

3. Supports informed loan selection

Using an education loan interest rate calculator helps students and parents evaluate different loan options offered by banks and financial institutions before choosing the most suitable one.

How to use the student loan EMI calculator?

The education loan calculator processes the following details and instantly provides repayment estimates. Here's a simple way to use this calculator.

1. Enter the loan amount

Start by entering the total loan amount you plan to borrow for your education. This represents the principal amount, which typically includes tuition fees, accommodation costs, travel expenses, and other academic expenses.

2. Enter the interest rate

Next, input the applicable interest rate offered by the lender. Different banks offer varying rates depending on the institution, course type, and borrower profile. For instance, applicants can compare options such as the Axis Bank education loan interest rate offered for eligible students.

3. Choose the loan tenure

Select the repayment duration for the loan. The loan tenure usually ranges between 5 and 15 years, depending on the lender’s policies and the loan amount.

4. Calculate the EMI

After entering the required details, the calculator processes the information and displays the estimated monthly repayment amount along with the total interest payable.

5. Compare repayment scenarios

Borrowers can modify inputs such as tenure or interest rate to evaluate different repayment plans. This allows users to choose the most manageable repayment option.

Formula used by student education loan calculator

The formula used for calculating EMI is:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where:
P = Principal loan amount
r = Monthly interest rate
n = Number of monthly instalments

An education loan interest calculator automatically applies this formula and provides the final EMI result without requiring manual calculations.

For example, if a student borrows ₹10,00,000 at an annual interest rate of 13.70% for a period of 10 years, the calculator will estimate the monthly repayment amount and the total interest payable over the entire tenure.

Because the formula accounts for compounding interest, it provides a realistic estimate of the total loan cost. The student loan calculator simplifies this process and helps borrowers evaluate repayment commitments before finalising their loans.

Benefits of education loan calculator

Here are some key benefits of an education loan interest calculator for students and parents planning their finances for higher education:

1. Improves financial planning

Knowing the expected repayment amount in advance helps borrowers plan their budgets more effectively.

2. Encourages responsible borrowing

Many students borrow more than necessary without fully understanding repayment obligations. The calculator helps them determine an appropriate loan amount.

3. Allows exploration of repayment scenarios

Additionally, it allows borrowers to explore multiple repayment scenarios. By adjusting loan tenure and interest rate assumptions using an education loan interest rate calculator, users can select the most affordable repayment structure.

4. Provides transparency in loan decisions

The student loan EMI calculator provides clarity during the decision-making process, helping borrowers choose a loan that aligns with their financial capacity.

5. Decide whether to increase your down payment

Some borrowers choose to fund part of their education costs through savings or scholarships. By adjusting the loan amount in the calculator, students and parents can see how reducing the borrowed amount lowers the EMI and overall interest burden.

6. Supports better family financial discussions

Education loans often involve both students and parents in the decision-making process. Using a calculator provides clear numbers that help families discuss repayment responsibilities and plan finances together.

Frequently Asked Questions

The time required for loan approval depends on the bank and the documentation provided by the applicant. In most cases, banks take about 7 to 15 working days to process education loan applications.

Margin money requirements depend on the course location and loan amount. For domestic courses, many banks may not require a margin for smaller loans, while overseas education loans may require a margin contribution of around 10–20 per cent depending on the institution and lender.

The documents required for the first disbursement are:

Demand letter from the college or university
Disbursement Request Form (DRF) signed by the applicant and co-applicants
Signed copy of the loan agreement, including:
- Demand Promissory Note (DPN)
- DP Note Delivery-cum-Waiver Letter
- Standing Instruction Request
- PDC (post-dated cheque)
Sanction letter signed by the applicant and co-applicants
Form A2 signed by the applicant or co-applicants (required for purchase of foreign exchange in case of overseas institutions)
Proof of margin money payment made to the educational institution
Bank statements showing the margin money transactions
Additional documents may include collateral security documents if needed and Form A2 completed by the applicant or co-applicants for studies abroad.

For subsequent disbursements as well, many of the aforementioned documents will be needed, particularly the demand letter from the college or university, DRF, receipt of margin money paid, and any one of the exam progress report, mark sheet, bonafide certificate.

Yes, ₹500 + taxes per cheque bounce and a penal interest rate of 24% per annum i.e., @ 2% per month on the overdue instalment/s. So, as far as possible, keep your repayment track record clean.

Yes. The interest component of the EMI paid on an education loan is deductible under Section 80E of the Income Tax Act of 1961, which can provide tax relief.

Disclaimer

Axis Bank does not guarantee accuracy, completeness or correct sequence of any of the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness / accuracy. The use of any information set out is entirely at the User's own risk. User should exercise due care and caution (including if necessary, obtaining of advise of tax/ legal/ accounting/ financial/ other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained / data generated herein. Axis Bank does not undertake any liability or responsibility to update any data. No claim (whether in contract, tort (including negligence) or otherwise) shall arise out of or in connection with the services against Axis Bank. Neither Axis Bank nor any of its agents or licensors or group companies shall be liable to user/ any third party, for any direct, indirect, incidental, special or consequential loss or damages (including, without limitation for loss of profit, business opportunity or loss of goodwill) whatsoever, whether in contract, tort, misrepresentation or otherwise arising from the use of these tools/ information contained / data generated herein.