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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
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
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.
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