Education Loan EMI Calculator

Leap Finance’s education loan EMI calculator is a user-friendly online tool that helps you calculate the EMI to be accrued on the amount of money you borrow to fund the quality education you have always dreamt of. We employ a quick, simple, and transparent approach to providing you with all the information you need to assess whether you want to put in your energies into securing an education loan with us.

In fact, we send you all the details you need to know about the loan amount immediately after you submit your online application form (which takes only 10 mins)!

How does Leap Finance’s Education Loan EMI Calculator make life easier for you?

If you calculate EMIs manually, you must be ready for a complicated, time-consuming, and monotonous calculation process.

The equation to calculate the applicable EMI for an educational loan is:

EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]

Where,

P= Principal loan amount,

R= Applicable rate of interest, and

n= Number of monthly instalments.

Will you waste your time and energy to calculate it?

Leap Finance’s free education loan EMI calculator is a simple tool that quickly evaluates and presents the actual EMI amount you will pay after obtaining the loan for your MS education abroad.

All you need to do is provide the principal amount that you want to borrow and choose the rate of interest you are comfortable with and the tenure of the loan. You can play with the varying combinations of these three factors and see which one works best for you without putting pressure on your finances.

How to Use the Leap Finance Education loan EMI Calculator?

Step 1: Choose the principal amount between 15000USD and 100000 USD.

Step 2: Choose the Interest Rate between 8% and 15%.

Step 3: Choose the tenure of repayment of the loan between 7 years to 15 years.

Step 4: Select the duration of your course.

Step 5: Viola! You see the exact total amount you have to repay, and the EMI amount you can pay off every month.

Leap Finance allows you to start repaying with a token amount of 100USD per month which allows you to build a credit history in a new country.

What are EMIs for Education Loan and How Do They Work?

EMIs for education loans for abroad studies can be classified into two categories: Pre EMI and Full EMI.

Pre EMI

These are the payments made towards the interest aspect of the education loan disbursed in parts.

Let’s assume you borrowed 50,000 USD and the bank or NBFC is paying you 10,000USD each at every stage that you make the fee payment in your academic year. As a borrower, you can begin making interest payments on this amount as soon as it is disbursed to you. 

Pre EMIs provide an economic alternative to paying off the whole EMI - principal +interest. Since with Pre EMIs, you’re only required to pay off the interest amount. When you are a student and paying off EMIs, every penny counts! This way, when the actual EMIs begin, you will have to pay a lesser amount as the interest on the principal amount has already been paid off.

Full EMIs

Full EMIs are simple.

You pay the interest + principal every month only after the full loan amount has been sent to you. After you’ve finished studying and you have got a job, you can pay off your EMIs comfortably. However, because the EMI amount remains the same throughout the loan term, if you are just starting out, the payment can eat into your disposable income. Even if you are someone who has saved money from before, the pressure is less, but only slightly. 

How does Leap Finance EMIs work?

Leap Finance collects a monthly token payment of 100 USD during your academic session from the very first month itself. It reduces the overall cost of your loan as you pay off some of the interest while studying. When the full EMIs begin after thirty six month, you don't feel financially burdened. Plus, this helps you to build a credit history in the country making it easier for you to be eligible to access other financial products, get a house, etc in the country.

Lastly, Leap Finance is heavily invested in you. We want you to develop healthy financial habits for life.

How do I use EMIs to compare loan offers?

To compare loan offers by different lenders, an online EMI calculator can be indeed helpful. You can choose varying combinations on different platforms to compare the terms stated by the lender.

For example, if you want to borrow 50,000 USD for 10 years at a rate of interest that is comfortable for you: You’ll go to the banks, NBFC, or private lender’s website and input your desired combination. Then you will play around with the amount, to see which combination works for you. Then you will do the same process with other lenders, before finally comparing final loan offers from each.

You will choose the lender that has the most flexible terms, has the least rate of interest, allows you to develop good credit history in the new country, and makes you eligible for tax rebates.