Logo
Visual EMI Calculator
Loan
Home Car Business Gold Education Property Commercial Vehicle Personal Two-Wheeler
Ad

Education Loan EMI Calculator by Reducing Balance

EMI
Reducing Balance Interest First Deferred Payment
100 K
Copy
Share
1,903
37,045
100,000
137,045
37 K
100,000
29 K
Original
You are here -
Home » Education Loan » Reducing Balance
Ad

How to Reduce Interest/ Tenure?

Share
Loan Summary
Tenure reduced
Interest saved 7,811

Loan Payment Schedule

-
-
-
-
-
2024
2027
2029

Education Loan EMI by Reducing Balance

An Education Loan EMI by Reducing Balance calculates interest on the outstanding principal amount, which decreases as you make repayments. This means that the EMIs reduce over time, reflecting the lower principal balance. This method usually results in lower total interest costs compared to flat rate loans, as interest is charged only on the remaining balance. Calculate your education loan EMI effortlessly with our Education Loan EMI Calculator by Reducing Balance. Get precise details of your monthly payments, interest, and principal, so you can focus on your studies with peace of mind.

Calculate Education Loan EMI by Reducing Balance

  1. Enter loan details like loan amount, interest rate, tenure, and choose months or years to calculate education loan EMI by reducing balance.
  2. Click Calculate to view your initial breakdown and calculate education loan EMI by reducing balance based on the inputs.
  3. Customize payment options with three inputs to optimize your education loan EMI by reducing balance.
  4. Select extra EMIs per year to reduce your education loan EMI tenure.
  5. Increase EMIs by a percentage to manage your education loan EMI effectively.
  6. Select a lump sum payment in a specific year to lower your interest and calculate your education loan EMI.
  7. Adjust inputs and click Recalculate to update your tenure and interest dynamically.
ad

Reducing Balance EMI formula

To calculate Education Loan EMI, use the Reducing Balance EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
E M I = P × r × ( 1 + r ) n ( 1 + r ) n - 1
EMI = Equated Monthly Installments
P = Principal loan amount
r = Monthly interest rate
n = Number of monthly installments

Eligibility Criteria for Education Loan EMI by Reducing Balance

Applicant's Age: The student must typically be between 18 and 35 years old to qualify for an education loan EMI.
Academic Record: A strong academic background is often required, with proof of admission to a recognized institution for the education loan EMI by reducing balance.
Co-applicant: A co-applicant, usually a parent or guardian, with a stable income source is required to support the loan application for education loan EMI.
Repayment Capability: The co-applicant's income and financial stability are assessed to ensure the ability to repay the education loan EMI.

Education Loan EMI Calculator by Reducing Balance FAQ

How does Reducing Balance EMI differ from Flat Rate EMI?
Reducing balance EMI charges interest on the decreasing principal, leading to gradually lower payments and lower total interest. Flat Rate EMI charges interest on the full principal throughout the term, resulting in fixed payments and generally higher total interest costs.
What are the advantages of an Education Loan EMI by Reducing Balance?
Education loan EMI by reducing balance offers lower overall interest costs and faster payoff, as interest is based on the decreasing principal. The clear amortization schedule shows how each payment reduces both principal and interest.
What are the disadvantages of an Education Loan EMI by Reducing Balance?
Education loan EMI by reducing balance may have slightly higher initial payments due to interest being calculated on the original loan amount. Though it offers cost savings, the method is more complex and requires borrowers to understand how reducing interest affects their repayments.
Ad
Percentage calculator Fraction calculator EMI Calculator Average Calculator Trigonometry Calculator LCM HCF Calculator
© 2024. Developed & Maintained by softUsvista Inc.
Copied!