EMI stands for "Equated Monthly Installment." It is a fixed amount of money that you need to pay to your lender each month to pay off a loan. The EMI includes both the interest and the principal amount of the loan. The amount of the EMI is determined by the loan amount, the interest rate, and the loan tenure (the number of months you have to repay the loan). Your lender will provide you with a schedule of EMIs that you need to pay each month until the loan is fully paid off.
To calculate your applicable EMIs without using an education loan calculator, you can use the following formula:
EMI = P x r x (1+r)^n/((1+r)^n-1)
Where: P = Principal loan amount r = Interest rate (annual interest rate divided by 12) n = Number of months for repayment.For example, if you have a loan amount of Rs. 5,00,000 with an interest rate of 12% p.a. and a repayment period of 60 months, your EMI would be:EMI = 500,000 x 0.01 x (1+0.01)^60/((1+0.01)^60-1) = Rs. 11,289.
Please note that this is a rough calculation, and the actual EMI may differ slightly depending on the lender's terms and conditions.
All institutions typically ask for documents like proof of address, proof of age, and proof of income. However, every institution may also request a few documents in accordance with the student loan eligibility criterion.
Your co-applicant can be your parents, siblings, parent-in-law, or spouse.
The different factors that are considered when lenders provide an education loan are the student's academic background, the co-borrowers job profile, the type of collateral that is being provided, and the university where the individual has secured admission.