How to Calculate EMI for Student Loan Abroad: Step-by-Step Guide

Planning to study in another country is a dream come true for many Indian students. But let’s be honest, studying abroad can be expensive. You’ll have to manage tuition fees, living costs, travel, books, and more. That’s where Student Loans for overseas study come in. These loans can help you take care of all your costs while you focus on learning.

Before you apply for a loan, you should know how much you’ll be paying every month after your studies. That’s called your EMI, or Equated Monthly Instalment. Knowing your EMI in advance helps you plan your budget better. It also helps you compare loan offers from different banks and lenders.

In this post, we’ll explain how to calculate your education loan EMI, why an abroad education loan EMI calculator is useful, and how you can use it step by step.

What Is EMI in a Student Loan?

EMI stands for Equated Monthly Instalment. This is the fixed amount you’ll pay every month to repay your education loan. Your EMI includes two things:

1. A part of the original loan amount (called the principal)
2. Interest charged by the lender

EMIs usually begin after your course ends and your moratorium period (job search period) is over. For most banks, this is 6 to 12 months after your studies finish.

Why Should You Calculate EMI in Advance?

• Before you borrow a Student Loan, it’s smart to check how much you’ll need to repay every month. Here’s why:
• It helps you plan your future expenses.
• You’ll know if the loan is affordable.
• You can compare EMIs from different banks.
• You’ll avoid any surprise payments later.

This is where an abroad education loan EMI calculator makes things super simple.

What Is an Abroad Education Loan EMI Calculator?

An EMI calculator is an online tool that tells you how much your EMI will be. You just have to enter a few basic things:

• Loan amount
• Interest rate
• Repayment period (loan tenure)

In seconds, the calculator shows you your monthly EMI and the total interest you’ll be paying. It’s quick, easy, and 100% free.

You can find many free EMI calculators online, including one on Spoctree’s platform, just one of the ways they help you compare education loans easily.

Formula to Calculate EMI 

Here’s the formula used to calculate EMI:

EMI = [P × R × (1+R)^n] / [(1+R)^n – 1]

Where:

P = Principal Loan Amount

R = Interest Rate per Month

n = Number of Months

Let’s break it down with an example.

Say you take a loan of ₹10,00,000

Interest Rate = 9% per year (which is 0.75% per month)

Loan Tenure = 2 years = 24 months

So,

P = 10,00,000

 R = 9 / 100 / 12 = 0.0075

 n = 24

Put these in the formula, and you get:

EMI = ₹45,685 approx.

This is the amount you’ll pay every month for 2 years.

How to Use an Education Loan EMI Calculator (Step-by-Step)

You don’t have to do any manual calculation if you use a loan calculator. Here’s how to use one:

Step 1: Go to any trusted education loan EMI calculator page

Search online or go to a trusted site like Spoctree.

Step 2: Enter your loan amount

Put in the total loan amount you want to borrow. For example, ₹20,00,000.

Step 3: Add the interest rate

Enter the interest rate offered by the lender. For example, 10%.

Step 4: Choose your loan tenure

This is the number of years you plan to repay the loan. It’s usually between 5 to 15 years.

Step 5: View your EMI

The calculator will instantly show your monthly EMI, total interest, and total amount to be paid.

Step 6: Try different combinations

You can adjust the loan amount, interest rate, or tenure to see what works best for your budget.

Quick Example Using an EMI Calculator

Let’s say:

Loan Amount = ₹15,00,000

Interest Rate = 10%

Loan Tenure = 10 years

The calculator will show:

EMI = ₹19,812

Total Interest = ₹8,77,489

Total Repayment = ₹23,77,489

Now you know exactly how much you’ll be paying, and for how long.

Final Thoughts

Taking a Student Loan for overseas study is a big step. But with the right tools and planning, it doesn’t have to be confusing. An abroad education loan EMI calculator helps you stay in control of your future by showing you what to expect.

Before you take the loan abroad education loan, make sure to Check the EMI, Compare lenders and Choose what fits your budget. If you ever feel stuck, there are platforms like SpocTree that can guide you to the best education loan options for studying abroad. Just remember, planning well today means no surprises tomorrow.