Visual EMI Calculator
Loan
Home
Car
Business
Gold
Education
Property
Commercial Vehicle
Personal
Two-Wheeler
Education Loan EMI Calculator by Reducing Balance
EMI
Reducing Balance
Interest First
Deferred Payment
Loan Amount
Loan Tenure
Year
Month
Rate of Interest
%
Copy
Share
EMI
1903
Interest
37045
Principal
100000
Total
137045
37 K
6
Year
100,000
29 K
Year
Original
Reduced
𝒊
1903
will be
EMI
for
100000
(100 K)
Loan Amount
for
6
Year
Loan Tenure
at
11.00%
Rate of Interest
.
How to Reduce Interest/ Tenure?
Pay
0
1
2
3
4
5
Extra EMI every year.
𝒊
Increase EMI by
0
2
3
5
7
10
15
20
% every year.
𝒊
Pay Lump-Sum
0
(1 K)
(2 K)
(3 K)
(4 K)
(5 K)
(6 K)
(7 K)
(8 K)
(9 K)
(10 K)
in
0
1
2
3
year.
𝒊
Recalculate
Share
Loan
Tenure
Interest
Original
6 year
37045
Reduced
4 year
8 months
29234
Saved
1 year
4 months
7811
Loan Payment Schedule
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Original
Reduced
Balloon Payment
31 K
23 K
15 K
7 K
0
-
-
-
-
-
2024
2027
2029
You are here
-
Home
»
Education Loan
»
Reducing Balance
Percentage calculator
Fraction calculator
LCM HCF Calculator
Average Calculator
Trigonometry Calculator
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
Enter loan details like loan amount, interest rate, tenure, and choose months or years to calculate education loan EMI by reducing balance.
Click Calculate to view your initial breakdown and calculate education loan EMI by reducing balance based on the inputs.
Customize payment options with three inputs to optimize your education loan EMI by reducing balance.
Select extra EMIs per year to reduce your education loan EMI tenure.
Increase EMIs by a percentage to manage your education loan EMI effectively.
Select a lump sum payment in a specific year to lower your interest and calculate your education loan EMI.
Adjust inputs and click Recalculate to update your tenure and interest dynamically.
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.
×
How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
6 year
37045
1 Extra EMI/ year
6 year
▶ 0 year
33540
▶ 3505
2 Extra EMI/ year
5 year
▶ 1 year
30796
▶ 6249
3 Extra EMI/ year
5 year
▶ 1 year
28464
▶ 8581
How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
6 year
37045
Increase EMI by 1%
6 year
▶ 0 year
36277
▶ 768
Increase EMI by 3%
6 year
▶ 0 year
34917
▶ 2128
Increase EMI by 5%
6 year
▶ 0 year
33749
▶ 3296
How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
6 year
37045
Pay 10% in 2nd year
6 year
▶ 0 year
32033
▶ 5012
Pay 20% in 3rd year
5 year
▶ 1 year
30857
▶ 6188
Pay 30% in 4th year
5 year
▶ 1 year
32547
▶ 4498
How to Reduce Interest/ Tenure?
Making early payments towards Principal amount can reduce your Interest and/ or Tenure.
1. How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
2. How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
3. How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
Let Others Know
✖
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!