Education and Career Forum

Respected Sir/Madam, I am interested to study BSc(Agriculture) by taking an education loan from Shamrao Vitthal Co-operative Bank. I don’t know how they calculate the interest rates. So, I just want to know about the calculation of education loan. Please tell me asap.

So, if you take an education loan of Rs 10 lakh with an average interest rate of 12%, for 2 years the EMI will be: P = 10 lakh, R = 12/100/12 (You convert to months), N = 2 years or 24 months EMI = [10,00,000 x 12/100/12 x (1+12/100/12)^24] / [(1+12/100/12)^24-1] EMI = Rs 47,073.
Step 1: To calculate your interest rate, you need to know the interest formula 1- I/Pt = r to get your rate. ...
2- I = Interest amount paid in a specific time period (month, year etc.)
3- P = Principle amount (the money before interest)
4- t = Time period involved.
5- r = Interest rate in decimal.