Education loan calculator

Last updated

Interest during the course and grace period (moratorium), the amount owed when repayment starts, and the EMI after it.

The rate offered to you. Finobazaar does not fill in a lender's rate.

Numbers only; commas are fine. Tenure up to 40 years (480 months).

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The moratorium

Education loans usually start repayment after the course and a grace period (the moratorium). Interest is charged during that time. If you do not pay it, it is added to the loan when repayment starts; if you pay it every month, repayment starts on the original amount and costs less in total.

Moratorium interest = loan × rate × months ÷ 12 (simple interest)

Assumptions

  • The whole loan is assumed to be paid out at the start; in practice it is paid out term by term, so the real interest during the course is lower.
  • Unpaid moratorium interest is added once, when repayment starts; some lenders add it more often, which costs a little more.
  • Any interest subsidy you may receive is not included.

Results are worked out from the numbers you enter and are for planning only. They are not an offer, an approval or financial advice. Finobazaar does not assume any lender's rate or rules; the lender's loan agreement and its key fact statement decide the actual EMI and charges.

Frequently asked questions

Which formula does the education loan calculator use?

Moratorium interest = loan × rate × months ÷ 12 (simple interest)
The explanation below the calculator sets out each step and what the result leaves out.

What details do I need for the education loan calculator?

You need: loan amount, interest rate, moratorium: course plus grace period (months) and repayment period after the moratorium. Take the figures from the lender's offer or key fact statement where you have one.

Does the calculator use a bank's interest rate?

No. You enter the rate offered to you. Finobazaar does not fill in a lender's rate, because rates depend on the lender, your profile and the date.

Is the result a loan offer or an approval?

Results are worked out from the numbers you enter and are for planning only. They are not an offer, an approval or financial advice. Finobazaar does not assume any lender's rate or rules; the lender's loan agreement and its key fact statement decide the actual EMI and charges.

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