Education Loan EMI Calculator

Model an education loan properly — including the moratorium, where interest keeps accruing while you are still studying.

EMI after moratorium
₹40,998
10 yr of repayment
Amount borrowed₹20,00,000
Interest added during moratorium₹10,38,367
Balance when EMIs start₹30,38,367
Total interest₹18,81,418
Total repaid₹49,19,785

About the Education Loan EMI Calculator

An education loan is the one product where the moratorium — the period during the course plus six to twelve months afterwards — dominates the total cost. During that window you make no EMI, but interest does not stop. It accrues and, unless you service it, gets added to your principal.

The difference is stark. On a ₹20 lakh loan at 10.5% with a four-year moratorium, letting interest capitalise adds roughly ₹10 lakh to what you eventually repay. Paying just the interest each month while studying, usually a few thousand rupees, avoids nearly all of it — and most banks also give a rate concession for doing so.

The formula

Balance at EMI start = P × (1 + R)^M, then the standard EMI formula runs on that balance
MMoratorium in months
PAmount disbursed
RMonthly rate

If simple interest is paid during the moratorium the principal stays at P, and the calculator adds those payments to your total cost separately.

Things worth knowing

1
Loans up to ₹7.5 lakh are covered by the Credit Guarantee Fund Scheme, so banks cannot insist on collateral.
2
Interest paid on an education loan is fully deductible under Section 80E for eight years — with no upper limit, under the old tax regime.
3
Ask for the rate concession for female students and for servicing interest during the course. Both are commonly available and rarely offered unprompted.

Frequently asked questions

It is the repayment holiday covering the course duration plus a grace period of six to twelve months after it ends. No EMI is due during that time, but interest continues to accrue on the amount disbursed.

If you can, yes. It stops the interest from being capitalised into your principal and most lenders give a 0.5–1% rate concession for servicing it. On a ₹20 lakh loan the saving typically runs into lakhs.

Not for loans up to ₹7.5 lakh under the CGFSEL guarantee scheme. Above that, banks generally ask for tangible security, and for large overseas loans they will want property or a fixed deposit lien.

Yes — Section 80E allows the entire interest paid to be deducted for up to eight years, with no cap on the amount. The deduction is available under the old regime and applies to loans for higher education for yourself, your spouse or your children.

Explore every calculator

55 free tools across loans, tax and investments — all with the full working shown.

Browse all tools