Education Loan EMI Calculator – Interest Rates 2025
Calculate monthly EMI, compare bank interest rates & estimate total repayment easily.
Loan Details
Adjust the values to calculate your EMI
Monthly EMI
₹25,000
Total Payable
₹3,00,000
Breakdown
Principal vs Interest
0%
InterestWhat is EMI?
EMI, or Equated Monthly Installment, is the fixed amount a person pays every month to repay a loan within a specific time period. It includes both the loan amount and interest, making repayment easier and more manageable. The EMI facility allows people to afford loans comfortably by paying in small monthly installments instead of paying the full amount at once.
EMIs and Educational Loans
Education loans are one of the most popular types of loans because they help many students continue their higher education every year. Banks provide education loans based on factors such as the student’s academic performance, the financial background of the co-borrower or parents, admission to a recognized college or university, and the repayment period of the loan.
An education loan offers many benefits to students, including easy repayment through monthly installments (EMIs), lower interest rates, and a longer repayment period after course completion. It also allows students to choose their preferred college or course without financial compromise while reducing the financial burden on parents or guardians.
Students can repay the loan through affordable EMI options over a fixed period, and in some cases, education loans may also come with very low or zero interest rates, making higher education more accessible and convenient.
Common Eligibility Criteria
Education loans in India can be applied for by any Indian resident student along with valid credentials and ID proofs. Specific factors include:
- Student’s Academic and Personal Details to ensure they meet the criteria.
- The Financial Background of the Co-Borrowers (parents/guardians).
- The Period of Course Completion.
- College/University of Admission.
Students can additionally benefit by researching government subsidies, scholarship facilities etc. to make education more affordable.
Education Loan Process
Here’s a step-by-step guide on the education loan process:
- Determine the Loan Amount: Research tuition rates and financial aid listings to calculate costs.
- Choose the Lender: Compare loan offerings from various banks and financial institutions.
- Check Eligibility: Review guidelines for age, nationality, and academic qualifications.
- Submit Loan Application: Fill out forms with admission letters, identity proof, etc.
- Loan Approval: The lender decides whether to approve or deny the request.
- Loan Disbursement: Funds are disbursed directly to the educational institution.
- Repayment: Repayment begins after finishing school or obtaining a job as per the schedule.
Education Loan Interest Rates in Different Banks
Interest rates change from bank to bank depending on the loan amount. Below is a list of interest rates in some Indian banks.
| Bank Name | Interest Rate (Approx) |
|---|---|
| State Bank of India (SBI) | 8.55% |
| HDFC Bank | 9.50% |
| ICICI Bank | 11.25% |
| Punjab National Bank (PNB) | 8.55% |
| Axis Bank | 13.70% to 15.20% |
| Bank of Baroda | 11.15% |
| Canara Bank | 9.25% |
| Kotak Mahindra Bank | 9.60% |
| Bank of India | 9.25% |
| IDFC Bank | 8.50% |
| HDFC Credila | 11.5% |
Interest Rates for EMIs and Education Loans
Education loans usually have a lower interest rate than other loans.The interest rates on education loans in India start from almost 8% p.a and extend upto 16% p.a depending on the bank you choose as well as the loan amount and moratorium period.
How does an EMI Calculator Work?
An EMI calculator works by quickly calculating your monthly EMI amount and the total payable amount with the help of the total loan amount (i.e., your Principal), the interest rate on the loan as well as the tenure of your loan in terms of months.
Education Loan EMI: FAQs
Simple answers about EMI meaning, education loan EMI calculation, interest rate, and total payable amount.
What is the full form of EMI?
How is EMI calculated for an education loan?
EMI = P x r x (1+r)^n / ((1+r)^n - 1)Here, P is the principal loan amount, r is the monthly interest rate, and n is the number of months.