Use
Andhra Bank Education Loan EMI Calculator to calculate your monthly
installments & plan your future and have a proper financial plan monthly
EMI’s
In
a knowledge economy that we live in today in India, education plays a pivotal
role. Education empowers us to reach new heights in our career, enables to live
a respectable life, elevates our standard of living, aids accomplish financial
goals, and much more!
Education
is a long-term personal investment that has the potential to generate returns
like none other.
With
an Andhra Bank Education Loan EMI, you can make your dreams come true. The loan
for education is available for career-oriented courses like medicine,
engineering, management, etc. either at a graduate or post-graduate level in
prime institutes in India and abroad. The loan covers tuition fees, examination
fees, library subscription, cost of books, needed lab tools/equipment,
laptop/computer, hostel charges (if any), and so on.
Students
can directly apply for an Andhra Bank Education Loan. However, their parent(s)
or guardian will be treated as co-applicants, and their role will be akin to a
primary debtor (a person who owes money).
But
before you apply for an Andhra Bank Education Loan, as a prudent loan planning
exercise, assess how much the Equated Monthly Instalment (EMI) will be.
When
one takes a Andhra Bank Education Loan, a natural question that comes to mind
is how much the EMI would (Equated Monthly Installment) be that one has to pay
back to the bank every month.
Hope
the following FAQ’s about Andhra Bank Education Loan EMI will answer all your
questions
What is Andhra
Bank Education Loan EMI Calculator?
A
Andhra Bank Education Loan calculator helps you know the amount of the EMIs
that you will need to pay towards your Andhra Bank Education Loan and helps
make an informed decision. The EMI-Calculators.com’s Andhra Bank Education Loan
EMI calculator also functions as a Andhra Bank Education Loan interest
calculator, as you will be able to know the interest amount due on your Andhra
Bank Education Loan, in addition to the overall EMI amount, in just 3 simple
steps. First, enter the loan amount that you wish to take. Then, select your
preferred tenor. Finally, put in the Andhra Bank Education Loan interest rate
advertised on the website. That’s all!
Our
EMI-Calculators.com’s Andhra Bank Education Loan EMI calculator has been
designed to offer utmost efficiency with maximum simplicity. This EMI
calculator is user friendly, saves time and is highly scalable.
What is Andhra Bank Education Loan EMI?
EMI
stands for Equated Monthly Instalment. EMI is the monthly repayment that a Andhra
Bank Education Loan borrower must make to repay the Andhra Bank Education Loan
within the specified loan tenor.
The
following table illustrates the EMI on several Andhra Bank Education Loan
amounts with different tenures.
Factors that
Affect Andhra Bank Education Loan EMI
- Principal– The principal is the loan amount that you avail from the
lender. It is directly proportional to your EMIs – lower principal will
lower your monthly instalments and vice versa.
- Rate of interest– The rate of interest is the rate at which the lender offers
you the loan. It is also directly proportional to the value of your loan
EMIs.
- Tenure– The tenure is the time within which you repay your loan. The
tenure is inversely proportional to your loan EMIs – longer tenure makes
the monthly instalments cheaper and vice versa.
Andhra Bank
Education Loan EMI for Different Loan Amounts
Following
table shows the EMIs for various loan amount based on different tenures at
11.00%* onwards
· The
EMI that you can avail with Andhra Bank Education Loan of 10 Lakh is 10,024
with 15-years tenure. The EMI increases when you opt for tenure of 5 years.
· The
EMI for a loan of 15 Lakh is higher – 30,992, when you opt for 5-years. It
decreases to 15,036 if you opt for tenure of 15 years.
· For
a loan of 25 Lakh, the cheapest EMI you can avail with 15-year tenure – 25,060.
Decreasing the tenure to 5 years increases the EMI to 51,654.
· The
EMI is 72,315 when you avail loan of 35 Lakh for 5 years. The same will
decrease to 35,084 if you increase the tenure to 15 years.
· The
cheapest EMI comes with 15-years tenure with loan of 50 Lakh – 50,120. The EMIs
double when you opt for 5 years tenure.
How is Andhra
Bank Education Loan EMI Calculated?
Equated Monthly
Installment – EMI for short – is the amount payable every month to the bank or
any other financial institution until the loan amount is fully paid off. It
consists of the interest on loan as well as part of the principal amount to be
repaid. The sum of principal amount and interest is divided by the tenure,
i.e., number of months, in which the loan must be repaid. This amount has to be
paid monthly.
E = P x r x
(1+r)^n/((1+r)^n – 1)
- E
is the amount that you will have to pay every month; basically, the EMI.
- P
is the amount that you want to borrow.
- r
is the rate of interest that is applicable but calculated on a monthly
basis instead of the annual rate of interest. It is obtained by using the
formula r = (annual interest/12) x 100.
- n
is the duration of the loan in terms of months. So, if you select a term
of 5 years, n will be 60.
EMI is just
the amount you (borrower) repay to the bank, each calendar month, to clear your
outstanding loan. You have to repay the EMI each month, on a particular fixed
date, for the entire duration (tenure) of the loan, till you repay the entire
outstanding amount. (amount borrowed + interest).
For Example, if you borrow
10,000,000 units of a currency from the bank at 10.5% annual interest for a
period of 10 years (i.e., 120 months), then EMI = Units of currency 10,000,000
* 0.00875 * (1 + 0.00875)^120 / ((1 + 0.00875)^120 – 1) = Units of currency
134,935. i.e., you will have to pay total currency units 134,935 for 120 months
to repay the entire loan amount. The total amount payable will be 134,935 * 120
= 16,192,200 currency units that includes currency units 6,192,200 as interest
toward the loan.
How to
Calculate EMI for Andhra Bank Education Loan?
Calculating the
EMI amount on your Andhra Bank Education Loan is quite easy. Simply enter the
loan amount you wish to take, the tenor (in months, and not years) and the rate
of interest, in the required fields.
Once you find the
EMI calculator for Andhra Bank Education Loan, to calculate the amount of
EMI, you need to put the following inputs in the EMI calculator:
- Loan
Amount –
The principal amount borrowed from the bank or financial institution is
known as the loan amount.
- Interest
Rate –
Interest rate can be either fixed or floating.
- Loan
tenure – Is
the time over which you choose to repay the loan.
The result will be
your EMI, the total interest you’ll be paying and the total amount you’ll be
paying by the end.
Who can apply
for an Andhra Bank Education Loan EMI?
The eligibility
criteria are as follows:
§ · The applicant and
co-applicant should be over 18 years of age and citizen of India(Identity Proof
– Aadhaar, Passport / Driving License / Voter ID / PAN)
§ · The student needs
to have secured at least 50% marks during HSC and graduation
§ · The student needs
to have obtained admission to career-oriented courses viz. Medicine,
Engineering, Management, etc., either at the graduate or post-graduate level
§ · Secured admission
in India or abroad from a recognized college/ education institutions in India through
entrance test/merit based selection process post completion of HSC (10+2), is a
must
§ · The co-applicant,
i.e. parent(s) or guardian, need to have a regular source of income
What are the
documents required to avail an Andhra Bank Education Loan EMI?
The following need
to be submitted along with the Andhra Bank Education Loan EMI application form:
§ · Income Tax statements (Salary slip, Form 16,
Income-Tax Returns of the last 2 years, and Computation of income of last 2
years certified by a Chartered Accountant)
§ · Bank
Statement/Pass Book of the last 6 months along with PAN
§ · Copy of the
admission letter of the Institute along with the ‘fee schedule’
§ · Mark sheets and/or
pass certificates of SSC, HSC, Degree Courses, National level entrance test
§ · Age proof (Aadhaar, Passport / Driving License / Voter ID / PAN, driving license)
§ · Address proof (Aadhaar, Passport / Driving License / Voter ID / PAN, latest electricity bill, latest telephone bill, ration card,
existing house lease agreement, bank account statement)
§ · Photo
identification proofs (Aadhaar, Passport / Driving License / Voter ID / PAN)
§ · Passport size
photos of the applicant and co-applicants
§ · Guarantor form
(optional)
How much time
does the bank take to convey its decision of sanctioning or rejecting the loan
application?
The bank sanctions
the Andhra Bank Education Loan only after thorough due diligence. Any Bank
usually disburses loans within 15 days from the date of receipt of the complete
application along with all documents required for a full appraisal.
How much is
the margin money required to avail an Andhra Bank Education Loan EMI?
There is no margin
for Andhra Bank Education Loans up to Rs 4 Lakhs. For loans above Rs 4 Lakh,
the margin for studies within India is 5% and for studies overseas is 15%.
What are the
documents required at the time of disbursement of Andhra Bank Education Loan
EMI?
The documents
required for the first disbursement are:
§ · Demand Letter from
college or university
§ · Disbursement
Request Form (DRF) signed by the applicant, co-applicants
§ · A signed copy of
Loan Agreement (which includes Demand Promissory Note, DP Note
Delivery-cum-Waiver Letter, Standing Instruction Request, PDC (Post-dated
Cheque)
§ · Sanction Letter
signed by the applicant, co-applicants
§ · Form A2 signed
(for the purchase of foreign exchange) by applicant or co-applicants in case
abroad Institute cases
§ · Receipts of Margin
Money paid to the college/university along with bank statement reflecting the
transaction
§ · Documents for
collateral security ( if applicable)
§ · Form A2 signed by
the applicant or co-applicants in case of overseas institute
§ · For subsequent
disbursements as well, many of the aforementioned documents will be needed,
particularly the demand letter from the college or university, DRF, receipt of
margin money paid, and one any from the exam progress report, mark sheet,
bonafide certificate.
What if I
miss my Andhra Bank Education Loan EMI or pay late? Are there any charges?
Yes, Rs 500 +
taxes per cheque bounce and a penal interest @24% per annum i.e. @ 2% per month
on the overdue instalment/s. So, as far as possible, keep your repayment track
record clean.
Is an Andhra
Bank Education Loan EMI eligible for tax deduction?
Yes. When you
avail an Andhra Bank Education Loan, the interest paid (which is a component of
your EMI) on the Andhra Bank Education Loan is allowed as a deduction under
Section 80E of the Income Tax Act, 1961. The deduction is available for a
maximum of 8 years or till the interest is paid, whichever is earlier.
What are the
Advantages of Knowing Andhra Bank Education Loan EMI in Advance?
Good planning
always ensures stable finances. Calculating the Andhra Bank Education Loan EMI
in advance gives a better understanding of the amount of money you would have
to spend every month. Hence, you can plan well and decide whether you are able
to spare that much money or not.
Components of
a Andhra Bank Education Loan EMI Calculator?
- Amount
of loan to calculate EMI
- Loan
term (months or years) to calculate EMI
- Rate
of interest (percentage) to calculate EMI
How to use Andhra
Bank Education Loan EMI Calculator?
Using the EMI
Calculator is a very simple process. All you need to do is follow these steps–
§ · Go the Andhra Bank
Education Loan EMI Calculator page
§ · Choose the loan
amount, rate of interest, and tenor (in months)
- That’s
all! You will instantly get your Andhra Bank Education Loan EMI amount
along with the interest amount payable on the loan.
What are the
Advantages of a Andhra Bank Education Loan EMI Calculator?
A Andhra Bank
Education Loan EMI Calculator helps you to decide whether you can afford the
financial commitment of a Andhra Bank Education Loan in the long term. If you
want, you can increase or decrease your EMI amount depending on the amount of
loan you are taking and the time period for which you’ll be paying the EMIs.
Quick Results – Applicants
can easily use this calculator to calculate the EMIs that they will be liable
to pay for the pre-determined tenure and interest rate that the Andhra Bank
Education Loans are offered, in mere seconds.
Simplicity – The
calculations using this EMI calculator for Andhra Bank Education Loan are based
on the applicant providing three key bits of information i.e. the principal
amount of the loan, the applicable rate of interest and the loan tenure.
Varying
Combinations – With the Andhra Bank Education Loan EMI calculator, you
can easily input different interest rates and tenures to look for a combination
that will allow you to easily repay the principal amount, without putting undue
pressure on your finances.
Free Usage –
The EMI-Calculators.com’s Andhra Bank
Education Loan EMI calculator is a user-friendly Andhra Bank Education Loan
calculator that is available to everyone free of charge and is easy to use
What Is a Andhra
Bank Education Loan EMI Amortization Schedule?
A Andhra Bank
Education Loan amortization schedule is the table or record which details all
the periodic payments on your loan. This is generated through an amortization
calculator.
Amortization is
basically the procedure of repaying a loan through regular payments over a
specified period. An amortization schedule is the total tally of loan payments
showing the amount of interest and principal contained in each payment, until
the loan is repaid in full.
What are the
factors that impact monthly Andhra Bank Education Loan EMI?
The estimated
monthly investment (EMI) depends on several factors such the amount, the tenure
of the loan, and the interest rate. The estimated monthly investment (EMI)
differs according to the loan type and the amount. If the interest rate of the
loan is fixed, the estimated monthly investment remains fixed as well for the
entire time the loan is active. The borrower can also opt for a pre-payment
wherein the estimated monthly investment (EMI) gets reduced. If the interest
rate is floating, the EMI is also floating.
What is
Flat/Fixed Rate of Interest? And Flat/Fixed Rate of Interest Effect your EMI
for Andhra Bank Education Loan?
A fixed rate of
interest is one where the interest rate on a loan remains fixed throughout the
loan repayment period (loan tenure). This type of interest rate is
comparatively higher than a floating rate of interest. Fixed rate of interest
is better for those who don’t prefer the risk of fluctuation that is an
integral part of a variable interest rate. In the case of a fixed rate of
interest, the loan EMI remains the same throughout the loan tenure.
The online loan
EMI calculator can be used to calculate loan EMIs with a fixed rate of
interest. The different Interests Rates that can be implied in a Loan
contract are Fixed Interest Rate and Floating Interest Rate.
Fixed Interest
Rate means interest payment on loan will be in fixed equal installments over
the entire period of the loan. The interest rate will not change regardless of
any market fluctuations.
Benefits
of Fixed Interest Rate:
- Interest
Rate does not change as per the market fluctuations
- Having
a fixed interest rate brings a sense of safety and security for the
borrower
- Since
it entails a fixed monthly repayment schedule, it helps in easy budgeting
Drawbacks
of Fixed Interest Rate:
- Generally,
Fixed Interest Rates are 1%-2.5% higher than Floating Interest Rate
- Fixed
Interest Rates are subject to change as per the market fluctuations, hence
if by chance the interest rate decreases, the fixed rate Andhra Bank
Education Loan won’t be benefited as the borrower will have to pay the
same fixed amount every month.
What is
Floating Rate of Interest? And Floating Rate of Interest Effect your EMI for Andhra
Bank Education Loan?
Floating rate of
interest changes depending on the market-lending rate. It is also known as
variable rate of interest. If the lending rate increases, the floating interest
rate will also increase. Due to the risk of fluctuation, the floating rate of
interest is usually lower than the fixed rate of interest. With a floating rate
of interest for a specified loan tenure, you can either expect your EMI to
reduce or increase depending on the rise in the interest rate.
The online loan
EMI calculator for Andhra Bank Education Loan can be used to calculate loan
EMIs with a Floating rate of interest.
Floating Interest
Rate is the rate which changes as per the market conditions. Loans on floating
interest rates are tied to a base rate PLUS a floating element thereof.
Benefits
of Floating Interest Rate:
· Floating Interest
Rates are cheaper than Fixed Interest Rate
· During the long
term, even if the floating interest rate rises the fixed interest rate, they
will eventually fall. Hence ensuring a lot of savings.
Drawbacks
of Floating Interest Rate:
Due to frequent
fluctuations in interest rate, the nature of monthly installments is quite
uneven.
Hence it is
necessary that you conduct a proper cost and benefit analysis before choosing
among Fixed and Floating Rate of Interests.
Why should I
use an Andhra Bank Education Loan EMI calculator?
The simplest
answer is that it’s fast and it’s convenient. This means that you can do
multiple calculations in minutes where such calculations many take longer were
you to sit down with a pen and paper. These calculators are also super
accurate, so it eliminates the possibility of errors in calculations, provided
you provide accurate data.
Will banks
provide the Andhra Bank Education Loan EMI calculator?
Yes. These days most,
if not all, banks have Andhra Bank Education Loan EMI calculator, specific to
various loans, available on their websites.
How much
should I pay as monthly EMI for Andhra Bank Education Loan?
Monthly EMI for Andhra
Bank Education Loan depends upon your income and expenses. Generally, banks
advise you to limit your EMI to 35% to 45% of your net income so that you can
pay your EMI without any burden or difficulty. You can calculate your EMI
online which will help you to know your repayment capacity.
What if I
miss EMI payment for Andhra Bank Education Loan or there is an ECS bounce?
If you miss your
EMI payment on your Andhra Bank Education Loan or if there is an ECS bounce
then bank may charge a penalty. In addition, it will also be reflected in
your CIBIL report and
your CIBIL score may
get impacted.
What if I get
delay in paying the Andhra Bank Education Loan EMI?
Banks charges
penalty for delaying EMI payment for Andhra Bank Education Loan. The amount of
penalty varies from bank to bank. This also impacts your CIBIL Score.
Why it is
necessary to calculate Andhra Bank Education Loan EMI beforehand?
It is important to
calculate your EMI in advance to maintain stability in future payments. When
you avail loan for your Andhra Bank Education Loan, you promise the bank to pay
a fixed amount at fixed date every month. So, before availing the Andhra Bank Education
Loan you should consider the stability of your income, monthly expenses and the
existing loan obligations to avoid any discrepancies in future payments.
Does the loan
tenure affect my EMI for Andhra Bank Education Loan?
Andhra Bank
Education Loan can be availed for maximum tenure of 20 years. Tenure affects
your monthly EMI. Longer the tenure of Andhra Bank Education Loan, lower will
be your EMI.
Must Know
things before you have Andhra Bank Education Loan EMI:
What
happens if you don’t pay Andhra Bank Education Loan EMI?
What happens if I
miss my EMI payment? You can only miss your EMI if you have insufficient funds
in your bank account. Few days grace period will be given to you to pay your
EMIs. Further delay in payments will be reported to CIBIL and will
have financial charges.
Should
I pay my Andhra Bank Education Loan EMI/ bill early?
At a minimum, you
should pay your Andhra Bank Education Loan bill or EMI before its statement due
date. You can never pay your Andhra Bank Education Loan too early but be sure
to check the statement period to which your early payment will be credited.
What
happens if I only pay the minimum payment on my Andhra Bank Education Loan?
What Happens If I
Make Only the Minimum Payment on My Andhra Bank Education Loan? Paying only the
minimum keeps you in debt longer, costs you money in interest and could hurt
your credit score. … If you pay the minimum toward your balance each month,
here’s what you can expect to happen: Paying down your debt will take much
longer.
Can
I foreclose my Andhra Bank Education Loan EMI?
Yes, you can clear
the future EMI of your Andhra Bank Education Loan by paying the total
outstanding in one go. But you should first ask the concerned bank regarding
the same. And, if your lender does not charge on the foreclosure, it would be
better going with your impending move of paying the entire outstanding.
How
can I avoid paying interest on my Andhra Bank Education Loan?
The best way to
avoid paying interest on your Andhra Bank Education Loan is to pay off the
balance in full every month. You can also avoid other fees, such as late
charges, by paying your Andhra Bank Education Loan bill on time.
Is
Andhra Bank Education Loan EMI better option?
Although a good
EMI scheme is easy on your wallet, you must try to avoid it as the first
option. You may not only be spending more than the actual worth of the product,
but also splurging first and then relying on EMI payments is not healthy for
your finances.
Is
Andhra Bank Education Loan EMI good?
The best form of
the EMI option is where there is no interest charged on the payment. … So, an
expense of Rs 12,000 spread over 12 months will lead to an EMI of Rs 1,000 a
month, that will come in each month’s Andhra Bank Education Loan bill.
What
is Andhra Bank Education Loan EMI scheme?
To facilitate Andhra
Bank Education Loan EMI option, banks charge a loan processing fee upfront. The
loan processing fee varies from bank to bank and is usually 0.5% to 1% of the
amount of your purchase. Interest.
Step by step
guide before having Andhra Bank Education Loan EMI:
Step
1 : Check Andhra Bank Education Loan EMI and calculate Andhra Bank Education
Loan eligibility – Andhra Bank Education Loan EMI Calculator
As you decide to
take a Andhra Bank Education Loan, always estimate your loan amount eligibility
to know the loan amount you will be eligible for and can apply for. Also
calculate the monthly EMI that you can comfortably service given your net take
personal salary and other existing fixed obligations including rent and EMIs on
other existing loans, if any. Your Andhra Bank Education Loan eligibility is
calculated based on your age, net income, existing obligations, property type,
LTV ratio and other factors. EMI is dependent on the loan amount, interest rate
and tenure. Once you understand your minimum loan requirement, your eligibility
and monthly EMI you can comfortably service, shortlist the banks which offer
you maximum loan amount to meet your requirements.
Step
2 : Check loan approval status and legal documents – Andhra Bank Education Loan
EMI Calculator
If you are buying
a property from builder, then check for the banks which have approved the
projects you have shortlisted. For resale property, check the approved map
plans and ensure that all property registration papers for the complete chain
from the first owner to current owner are in place. Shortlist the banks which
lend on your chosen property.
Step
3 : Decide on type of Andhra Bank Education Loan interest rate offers – Andhra
Bank Education Loan EMI Calculator
As you narrow down
the list of banks in Step 2 and 3, you need to conduct an interest rate on Andhra
Bank Education Loan comparison of the loan offers of various banks. Some of the
interest rate offers that needs to be checked are:
Choice between
fixed and floating rates – Fixed rates come at a slightly higher rate of
interest compared to floating rate loans and interest rate remains constant
during the tenure of Andhra Bank Education Loan. In floating rate loan,
interest rates are reset at periodic intervals in response to changes in MCLR
and PLR rates of banks or NBFCs. Majority of Andhra Bank Education Loans in
India today are floating rate loans as it allows the borrowers to get Andhra
Bank Education Loan interest rate in line with the current interest rates.
Decide if you need
a home saver loan – This is a loan with overdraft facility which allows you to
deposit surplus amount in your Andhra Bank Education Loan overdraft account as
and when available, allowing you to reduce your overall interest amount. This
loan is highly recommended for salaried individuals with high bonuses and
self-employed business which is seasonal and has fluctuating cash flows. The
interest rates on overdraft loan is slightly higher than that of a regular Andhra
Bank Education Loan interest rate.
You can also
evaluate a mortgage guarantee Andhra Bank Education Loan as it covers any
default risk and allows the lender to give you loan at low rate of interest.
You will however need to pay a mortgage guarantee fee to the bank.
Check and compare
the current Andhra Bank Education Loan interest rates of the banks on various
types of loan products and take an informed decision.
Step
4 : Compare shortlisted banks | Andhra Bank Education Loan EMI Calculator
In addition to
interest rates, banks also charge many other fees on Andhra Bank Education Loans.
Along with interest rates, you should check other associated costs with your
loan which include prepayment charges, processing fee, insurance premium and
other charges offered by the shortlisted banks. You should calculate
all-inclusive costs on Andhra Bank Education Loan to be able to further
shortlist the banks and reduce your choice to 2-3 banks.
You can take the
help of loan advisors of online on various websites listed below.
- · https://studentloanhero.com/
- · https://www.avanse.com
- · https://www.myloancare.in/
- · https://www.paisabazaar.com/
- · https://www.bankbazaar.com/
- · https://indianmoney.com/
- · https://www.deal4loans.com/
- · https://www.wishfin.com/
- · https://indialends.com/
- · https://www.bajajcapital.com/
- · https://www.apnapaisa.com/
- · https://www.rubique.com/
- · https://www.bajajfinserv.in
Step
5: Select the bank based on other service related parameters | Andhra Bank
Education Loan EMI Calculator
Finally, as you
decide to take the loan, also consider other service and transparency related
parameters of the chosen banks. Some of these factors are turnaround time
offered by the banks, quick loan delivery, doorstep services, transparency in
the loan process. You also need to understand the trends and changes in MCLR
rates over a period. Last but not the least, read reviews of existing customers
on banks on their services, interest rates and transparency to take your
decision to borrow from a bank.
Bank specific
Andhra Bank Education Loan EMI Calculator FAQs
1. What
benefits do I get by calculating my EMI before taking an Andhra Bank Education
Loan?
Calculating your
EMI before taking a loan can help you in the following ways:
You can manage
your monthly expenses better. Once you know how much you have to pay towards
your loan each month, you can then budget the other expenses accordingly. You
will be able to determine what tenure to choose depending on how much you can
afford to repay every month. Planning prepayments and pre-closures can be done
easily, helping you pay off your loan faster.
2. Will my
EMIs change in case of prepayment?
When you prepay a
part of your loan, the outstanding principal will reduce. This allows you to
opt for a lower EMI while keeping the loan tenure the same. Or, you can
maintain the same monthly instalment as before and reduce the tenure of the
loan. It is advisable to maintain the same EMI and reduce the tenure since this
will reduce the amount of interest you pay in the long run.
3. Can I use
the same Andhra Bank Education Loan EMI calculator for all banks?
Yes. An EMI
calculator is a common tool and is not tied to any bank or financial
institution. If you know your principal, interest rate, processing charges, and
tenure, you should be able to generate your EMI. BankBazaar’s calculator also
allows you to factor in prepayment details.
4.How
accurate is an Andhra Bank Education Loan EMI calculator?
An EMI calculator estimates your loan repayment details based on
the data you give it. But the EMI that your bank gives you may be a little
different due to other charges involved in the calculation. Also, if your Andhra
Bank Education Loan is subject to a floating rate, then the interest rate
changes every year based on the MCLR or base rate change. Even a slight change
in interest rate will make a difference to the total loan amount you repay,
depending on the duration of the loan. These variables limit the accuracy of an
EMI calculator.
5. Why are
the interest charges in the repayment table slightly higher during the initial
months of the loan?
The interest rate
of your loan is applied based on “reducing balance principle”. Because of this,
the interest will be slightly higher during the initial phase since the
principal outstanding is higher. As this amount reduces, the incidence of interest
will also come down proportionately.
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