How Parul Used an EMI Calculator to Plan Her ₹12 Lakh Education Loan?

When planning to study abroad, one of the biggest questions that comes to your mind is funding the education. For Parul, this meant exploring the possibility of taking an education loan to cover her tuition and living expenses. She turned to an EMI calculator, which helped her in making an informed decision. EMI Calculator is a simple but powerful tool that helped her understand the financial obligations, which are involved in borrowing ₹12 lakh for her studies. 

Scenario: Parul is planning to study abroad and needs a ₹12 lakh loan.  

• Loan Amount: ₹12,00,000 
• Tenure: 8 Years 
• Rate: 8%
• Interest Amount: ₹4,28,545 
• Total Payable: ₹ 16,28,545 

Parul considered taking an education loan of ₹12,00,000 with a tenure of 8 years at an interest rate of 8% per annum. Using an EMI calculator, she determined that over the loan period, she would end up paying a total interest of ₹4,28,545. This means that the total repayment amount over 8 years would be ₹16,28,545.  

The calculator also gave her a breakdown of her monthly EMI, which helped her plan her future finances more accurately and assess whether she could manage the repayments comfortably after completing her studies. 

Also Read: What’s Better for Paying Off A ₹80 Lakh Home Loan: Shorter Tenure or Higher EMI? 

Conclusion 

With the help of the EMI Calculator, Parul took a clearer picture of her financial obligations and was able to evaluate whether the loan was manageable in the long term. It is important for every student to take this planning in consideration before securing an education loan, as it ensures they are financially prepared for repayment without unexpected uncertainties. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.