Education loans from Buddy Loan come at low interest rate and easy repayment
options. You may choose your preferred tenure and amount to ensure the EMI amount
is as per your repayment capacity. EMI is short for equated monthly installments. It is
that amount which paid monthly for entire loan tenure repays the loan. Student loan EMI
starts after you complete your course. Before that, you have to pay simple interest on
loan amount from the date of getting a loan till you clear the program. Some banks may
extend EMI on student education loan by six months after course completion. The six months
extended time is allowed for a student to get placed.
Education loan EMI formula
EMI has two parts, the principal amount repayment part, and the interest payment part.
We can write it as E=p+i.
A simple expression of the education loan repayment can be understood through an
example. Suppose a student takes a loan of Rs 1, 20,000, at 10% annual interest rate
for 5 years. Then what can be simple way of calculating EMI? Just divide 1, 20,000 by
60, and we get 2000 per month. This will be p. Now we have to get i; this can be got
from simple interest formula. What will be per month interest on 1, 20,000 @
10%=1,20,000×(1/12)×10/100=Rs 1000. Thus EMI will be Rs 2000+Rs 1000=Rs 3000
per month. But banks may apply a more complex formula.
Suppose loan amount is P, the rate of interest is R, and tenure is T. With every month,
EMI repayment i decreases as P decreases as part of P gets paid every month and
i=PTR/100. But in EMI calculations, p is increased, such that (p+i) remains the same for
all the months. This way, EMI calculation is complex but truer and total EMI lesser as
the loan amortizes a little earlier than five years.
Student Education loan EMI for unpaid interest
If the simple interest on the loan has been paid on the principal loan amount for the
course duration, EMI is calculated on the principal amountborrowed from Buddy Loan.
The simple interest installments unpaid keep compounding at the rate of interest and
get added to the principal amount. So EMI is calculated in this case on principal loan
amount plus compounded unpaid simple interest installment amount.
Education loan EMI calculator
EMI calculator for student education loan is available online. You need to input the principal
amount, the applicable rate of interest, and tenure, and the calculator will return in
seconds the EMI amount. You may note that if you reduce tenure, EMI increases, and if
you increase tenure, EMI decreases. Education loan tenure can be maximum 5 or 7
years, and interest rates can be 9.1% to 11.99%
options. You may choose your preferred tenure and amount to ensure the EMI amount
is as per your repayment capacity. EMI is short for equated monthly installments. It is
that amount which paid monthly for entire loan tenure repays the loan. Student loan EMI
starts after you complete your course. Before that, you have to pay simple interest on
loan amount from the date of getting a loan till you clear the program. Some banks may
extend EMI on student education loan by six months after course completion. The six months
extended time is allowed for a student to get placed.
Education loan EMI formula
EMI has two parts, the principal amount repayment part, and the interest payment part.
We can write it as E=p+i.
A simple expression of the education loan repayment can be understood through an
example. Suppose a student takes a loan of Rs 1, 20,000, at 10% annual interest rate
for 5 years. Then what can be simple way of calculating EMI? Just divide 1, 20,000 by
60, and we get 2000 per month. This will be p. Now we have to get i; this can be got
from simple interest formula. What will be per month interest on 1, 20,000 @
10%=1,20,000×(1/12)×10/100=Rs 1000. Thus EMI will be Rs 2000+Rs 1000=Rs 3000
per month. But banks may apply a more complex formula.
Suppose loan amount is P, the rate of interest is R, and tenure is T. With every month,
EMI repayment i decreases as P decreases as part of P gets paid every month and
i=PTR/100. But in EMI calculations, p is increased, such that (p+i) remains the same for
all the months. This way, EMI calculation is complex but truer and total EMI lesser as
the loan amortizes a little earlier than five years.
Student Education loan EMI for unpaid interest
If the simple interest on the loan has been paid on the principal loan amount for the
course duration, EMI is calculated on the principal amountborrowed from Buddy Loan.
The simple interest installments unpaid keep compounding at the rate of interest and
get added to the principal amount. So EMI is calculated in this case on principal loan
amount plus compounded unpaid simple interest installment amount.
Education loan EMI calculator
EMI calculator for student education loan is available online. You need to input the principal
amount, the applicable rate of interest, and tenure, and the calculator will return in
seconds the EMI amount. You may note that if you reduce tenure, EMI increases, and if
you increase tenure, EMI decreases. Education loan tenure can be maximum 5 or 7
years, and interest rates can be 9.1% to 11.99%
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