| Year | Principal Paid | Interest Paid | Balance |
|---|
Use this free education loan calculator to find your monthly EMI, total interest payable, complete repayment schedule and the impact of the moratorium period on your total loan cost. Built specifically for Indian students, it covers loans for studies in India and abroad, supports moratorium periods up to 36 months, and shows year-wise principal and interest breakdowns instantly. No login required.
What This Education Loan Calculator Shows
Most education loan calculators online show you just one number: your monthly EMI. This calculator answers every question a student or parent actually needs answered before taking a loan.
10 things this calculator covers:
- Monthly EMI after the moratorium period ends The EMI you will actually pay once repayment starts, calculated on the correct post-moratorium principal.
- Interest accumulated during the moratorium period One of the most underestimated costs of an education loan. If you borrow 10 lakh at 10.5 per cent and have a 24-month moratorium, approximately 2.1 lakh in interest gets added to your principal before a single EMI is paid. This calculator shows you exactly how much.
- Effective loan amount after moratorium capitalisation The inflated principal on which your EMI is actually based, not the original loan amount you borrowed.
- Total interest payable over the full loan term The complete interest burden from day one to the final EMI. This is the number most calculators hide or do not show prominently.
- Total amount payable to the lender Original loan amount plus total interest, giving you the true cost of borrowing.
- Year-wise repayment schedule Every year broken down into principal repaid, interest paid and outstanding balance. You can see exactly when interest stops dominating your EMI and principal repayment takes over.
- Section 80E tax benefit estimate Education loan interest is 100 per cent tax-deductible under Section 80E with no upper limit, for up to 8 years. The calculator highlights this benefit so you understand the effective post-tax cost of your loan.
- Quick course-specific presets Four ready-made scenarios are built in: MBA in India (10 lakh at 10.5 per cent for 10 years), MS Abroad (40 lakh at 11.5 per cent for 15 years), Engineering (4 lakh at 9.5 per cent for 7 years) and Medical (25 lakh at 9 per cent for 12 years). One click loads any of these for instant comparison.
- Shareable plan and CSV download Share your loan plan with parents or a financial advisor via a personalised link, or download the full repayment schedule as a CSV file.
- Completely free, no login, no data stored No registration, no email, no data stored on any server. Your financial calculations stay on your device.
What Is an Education Loan?
An education loan is a financial product that helps students fund higher education expenses when family savings are not sufficient. It covers costs including tuition fees, hostel and accommodation, books, laptops, travel (including international flights for studies abroad) and other course-related expenses.
Education loans in India are available from public sector banks, private banks, and non-banking financial companies (NBFCs). They are fundamentally different from other loans in one key way: they come with a moratorium period, which means repayment does not begin while you are still studying.
This moratorium feature makes education loans accessible to students who have no income during their course. However, it also means interest accrues during the study period, which increases the effective loan amount you will need to repay. Understanding this is essential before borrowing, which is exactly why this calculator exists.
The Moratorium Period: The Most Important Feature to Understand
The moratorium period is the time during which you are not required to pay any EMIs on your education loan. It typically covers the duration of your course plus an additional 6 to 12 months after completion to allow time for job placement.
For example, if you take a 2-year MBA loan, your moratorium period is typically 2 years (course duration) plus 6 to 12 months (job search period) = 2.5 to 3 years during which no EMI is required.
What happens to interest during the moratorium?
Interest does not stop during the moratorium period. It continues to accrue on your outstanding loan balance every month. Most Indian public sector banks charge simple interest during the moratorium period, which is then added to the principal when the repayment phase begins. Private banks and NBFCs often compound the interest, which results in a higher effective principal.
This is why the EMI you pay after your moratorium ends is higher than the EMI would have been if you had started repaying immediately. The longer the moratorium, the higher the effective principal and the higher your future EMI.
Three moratorium payment options explained
Most Indian banks offer three approaches to the moratorium period:
Option 1: No payments during moratorium (full moratorium) The most common choice for students who have no income during their course. Interest accumulates for the full moratorium period and is added to the principal at the end. Results in the highest EMI and highest total interest paid.
Option 2: Pay only simple interest during moratorium (partial moratorium) You pay a small monthly amount during the course period covering the interest as it accrues. This prevents interest from being added to the principal. Results in a meaningfully lower EMI after the moratorium ends and significant savings in total interest.
Option 3: Full EMI from month 1 (no moratorium) You start paying the full EMI immediately, even during the course. Results in the lowest total interest paid but requires income or parental support from day one. Not chosen by most students.
The PlanMyReturns education loan calculator supports all moratorium configurations. Enter your moratorium period in months to see the full impact of each option on your total repayment.
How much does the moratorium actually cost you?
Loan amount: 20 lakh
Interest rate: 10.5 per cent per annum
Repayment tenure: 10 years
Moratorium period: 24 months
Without a moratorium (repayment starts immediately)
Monthly EMI: approximately 27,000 rupees
Total interest: approximately 12.4 lakh
Total payable: approximately 32.4 lakh
With 24-month moratorium (interest capitalised):
Interest accrued during moratorium: approximately 4.41 lakh
Effective principal at start of repayment: approximately 24.41 lakh Monthly
EMI: approximately 33,000 rupees
Total interest: approximately 15.2 lakh
Total payable: approximately 35.2 lakh
The 24-month moratorium on a 20 lakh loan at 10.5 per cent costs approximately 2.8 lakh extra in total repayment compared to starting repayment immediately. Paying even partial interest during the moratorium period significantly reduces this additional cost.
Use the moratorium field in the calculator above to see exactly how this plays out for your specific loan amount and interest rate.
How to Calculate Education Loan EMI
Education loan EMI calculation uses the standard reducing balance method, with one key modification: the moratorium period increases the effective principal before EMI calculation begins.
Step 1: Calculate interest during moratorium
If you choose the full moratorium (no payments during the course), interest accrues on the original loan amount for the duration of the moratorium period.
For public sector banks using simple interest during moratorium: Interest during moratorium = Loan Amount x (Annual Rate / 100) x (Moratorium Months / 12)
Example: 10 lakh loan at 10.5 per cent for 24 months moratorium Interest = 10,00,000 x 0.105 x 2 = 2,10,000 rupees
Effective principal at start of repayment = 10 lakh + 2.1 lakh = 12.1 lakh
Step 2: Apply the standard EMI formula
EMI = P x r x (1 + r) raised to n, divided by [(1 + r) raised to n minus 1]
Where: P = Effective principal after moratorium capitalisation r = Monthly interest rate = Annual interest rate divided by (12 x 100) n = Repayment tenure in months (years x 12)
For the above example with 10-year repayment: P = 12,10,000 rupees r = 10.5 divided by 1200 = 0.00875 n = 120 months
EMI = approximately 16,400 rupees per month
Step 3: Build the repayment schedule
Each month: Interest component = Outstanding balance x Monthly interest rate Principal component = EMI minus interest component New outstanding balance = Previous balance minus principal component
Over time, the interest component of each EMI reduces and the principal component increases. The year-wise table in the PlanMyReturns calculator shows this breakdown for every year of your loan tenure.
How to calculate education loan interest per month
Monthly interest on outstanding balance = (Outstanding Principal x Annual Interest Rate) divided by (12 x 100)
Example: If your outstanding principal is 8 lakh and rate is 10.5 per cent: Monthly interest = (8,00,000 x 10.5) divided by 1200 = 7,000 rupees per month
This is the portion of your EMI that goes to the lender as interest. The rest reduces your principal.
How to calculate student loan interest for a specific period
For a specific period of n months, the total interest paid can be read from the year-wise repayment schedule the calculator generates. Add up the “Interest Paid” column for the months you want to analyse.
How to Use the PlanMyReturns Education Loan Calculator
Step 1: Enter your loan amount
Type the total education loan amount you plan to borrow. Include all costs you will fund through the loan: tuition fees, hostel, books, travel and other course expenses.
Step 2: Set repayment tenure
Enter the repayment tenure in years or months. Standard education loan tenures in India are: 5 to 7 years for smaller domestic loans (under 4 lakh) 7 to 10 years for medium loans (4 to 15 lakh) 12 to 15 years for larger loans (above 15 lakh, especially for studies abroad) Up to 20 years for very high-value loans from select banks
Use the quick tenure pills (5, 7, 10, 15 years) to compare EMI across different repayment horizons instantly.
Step 3: Enter your interest rate
Enter the annual interest rate offered by your bank or NBFC. Current education loan interest rates in India (as of early 2026):
| Lender type | Typical interest rate range |
|---|---|
| Public sector banks (SBI, Canara, Bank of Baroda) with collateral | 8.5 to 9.5 per cent |
| Public sector banks without collateral (up to 7.5 lakh) | 10 to 11 per cent |
| Private banks (HDFC, ICICI, Axis) | 10.5 to 13 per cent |
| NBFCs (Credila, Avanse, Auxilo) | 11 to 14 per cent |
Note: Women borrowers typically receive a 0.5 per cent concession from most public sector banks. Students admitted to IITs, IIMs or top-ranked foreign universities often receive preferential rates from select lenders.
Step 4: Add moratorium period (optional but important)
Open the Advanced Options section and enter your moratorium period in months. This is typically: Course duration in months plus 6 months for most government banks Course duration in months plus 12 months for many private banks and NBFCs
For a 2-year MBA: moratorium = 24 plus 6 = 30 months For a 4-year BE/BTech: moratorium = 48 plus 6 = 54 months For a 1-year MS abroad: moratorium = 12 plus 6 = 18 months
Step 5: Click Calculate
Your results appear instantly: Monthly EMI amount after repayment starts Interest accrued during moratorium Total interest payable over the full tenure Total amount payable to the lender Year-wise repayment breakdown table
Education Loan Repayment Schedule: What It Shows and Why It Matters
The repayment schedule (also called an amortisation schedule) is the year-by-year breakdown of every rupee you pay over the life of your loan. The PlanMyReturns education loan calculator generates a full year-wise repayment schedule showing:
For each year: Total principal repaid during that year Total interest paid during that year Outstanding balance at year end
Why the repayment schedule matters more than just the EMI:
In the early years of repayment, the majority of your EMI goes toward interest, not principal. For a typical 10-year education loan at 10.5 per cent, in year 1 of repayment, approximately 60 to 70 per cent of each EMI is interest. By year 8 or 9, this reverses and the majority goes toward principal.
Understanding this schedule helps you decide: When to make prepayments for maximum impact (early in the tenure) How much of your total income will go to loan repayment each year after graduation Whether a shorter tenure with higher EMI saves meaningfully over a longer tenure
Sample repayment schedule (10 lakh at 10.5% for 10 years, no moratorium)
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 1 | approximately 64,000 | approximately 97,000 | approximately 9.36 lakh |
| 2 | approximately 71,000 | approximately 90,000 | approximately 8.65 lakh |
| 3 | approximately 78,000 | approximately 83,000 | approximately 7.87 lakh |
| 5 | approximately 95,000 | approximately 66,000 | approximately 6.17 lakh |
| 8 | approximately 1.28 lakh | approximately 33,000 | approximately 2.58 lakh |
| 10 | approximately 1.42 lakh | approximately 12,000 | 0 |
Notice how the principal repaid each year increases while interest reduces. This is the natural structure of a reducing balance loan.
For the exact schedule with your specific loan amount, rate and tenure, use the calculator above and view the year-wise table in the results section.
How to Calculate Student Loan Repayment: Step by Step
Whether you are estimating future repayment before borrowing or tracking an existing loan, here is the step-by-step method.
For future repayment planning (before taking the loan):
Step 1: Decide your loan amount based on your course cost
Step 2: Check current interest rates from 3 to 4 lenders
Step 3: Estimate your moratorium period (course duration plus 6 to 12 months)
Step 4: Enter all three inputs in the PlanMyReturns calculator
Step 5: Compare the EMI against your expected first-year salary after graduation
Step 6: As a rule of thumb, your education loan EMI should not exceed 15 to 20 per cent of your expected monthly take-home salary
For tracking an existing loan:
Step 1: Note your current outstanding principal from your bank statement
Step 2: Check your loan statement for the current interest rate
Step 3: Count the remaining months on your tenure
Step 4: Enter these figures in the calculator to see your remaining schedule
Step 5: Check if making a prepayment this month would meaningfully reduce total interest
How to calculate student loan interest per month manually:
Monthly interest = (Outstanding Principal x Annual Interest Rate) divided by 1200
Example: Outstanding balance 12 lakh, rate 10.5 per cent Monthly interest = (12,00,000 x 10.5) divided by 1200 = 10,500 rupees
If your EMI is 16,000 rupees per month, the principal component of that EMI is 16,000 minus 10,500 = 5,500 rupees.
Education Loan Eligibility in India
Understanding basic eligibility helps you plan the loan application alongside using this calculator.
Basic eligibility criteria (most Indian banks):
Student: Indian citizen with confirmed admission to a recognised institution.
For domestic loans: UGC, AICTE or equivalent approved institutions.
For international loans: institutions in the QS World Rankings, Times Higher Education rankings or OECD countries.
Co-applicant: Parent or guardian with stable income is mandatory for most lenders. The co-applicant’s income and creditworthiness determine the maximum loan amount eligible.
Academic record: Minimum 50 to 60 per cent marks in the previous qualifying examination (12th grade for undergraduate loans, graduation for postgraduate loans).
Admission proof: Valid offer letter or admission confirmation from the institution.
Collateral requirements:
Up to 4 lakh: No collateral or co-applicant required for loans under the IBA model scheme
4 lakh to 7.5 lakh: No collateral required but co-applicant is mandatory
Above 7.5 lakh: Collateral security required equal to 100 to 150 per cent of the loan amount. Acceptable collateral includes immovable property, LIC policies, FD receipts and NSC certificates.
Maximum loan amounts (approximate, varies by bank and lender):
Studies in India: Up to 10 to 15 lakh without collateral from select banks; up to 1.5 crore with collateral from NBFCs
Studies abroad: Up to 20 lakh without collateral from some private banks; up to 2 crore with collateral from NBFCs and private banks
The PlanMyReturns education loan eligibility calculator can help you check preliminary eligibility. Once you know the approximate loan amount you qualify for, return to this page to calculate your EMI and repayment schedule.
Section 80E Tax Benefit on Education Loan Interest
The Section 80E deduction is one of the most valuable and least understood tax benefits available to education loan borrowers in India.
What Section 80E allows:
You can claim a 100 per cent deduction on the interest paid on your education loan. There is no upper limit on the amount that can be deducted. The deduction is available for 8 consecutive years starting from the year you begin repaying the loan.
Who qualifies:
The loan must have been taken from a recognised financial institution (bank or approved charitable institution). The loan must be for higher education of the taxpayer, spouse, children or a student for whom the taxpayer is the legal guardian. The deduction is only for the interest component, not the principal component.
Available only under the old tax regime:
Section 80E deductions are not available if you have opted for the new tax regime introduced from FY 2023-24. If you have a significant education loan, the interest deduction under 80E may make the old tax regime more beneficial for you. Use the Income Tax Calculator at PlanMyReturns to compare your tax liability under both regimes.
How much can Section 80E save you?
Example: Annual interest paid in year 2 of repayment = 1.1 lakh rupees.
If you are in the 30 per cent tax bracket: Tax saving = 1,10,000 x 30 per cent = 33,000 rupees saved on that year’s tax bill.
Effective interest rate after tax saving = approximately 7.35 per cent (instead of 10.5 per cent headline rate).
Over 8 years of deduction, a borrower in the 30 per cent bracket can save anywhere from 1.5 to 4 lakh in total taxes depending on the loan amount and interest rate. This makes education loans one of the most tax-efficient forms of borrowing in India, second only to home loans.
Central Sector Interest Subsidy Scheme (CSIS)
For students from families with annual income up to 4.5 lakh rupees, the Government of India provides a full interest subsidy during the moratorium period for education loans up to 10 lakh. This means qualifying students pay zero interest during their course, dramatically reducing the effective loan cost.
Eligible institutions: NAAC, NBA accredited colleges and Centrally Funded Technical Institutions (CFTIs) including IITs, NITs and IIITs.
Education Loan Tips: How to Reduce Your Total Repayment
Tip 1: Pay interest during the moratorium period
Even paying only the interest as it accrues during your course prevents capitalisation. On a 15 lakh loan at 11 per cent with a 30-month moratorium, this saves approximately 2.7 to 3.5 lakh in total repayment compared to the full moratorium option. Test this in the calculator by setting the moratorium to zero and comparing total interest.
Tip 2: Compare interest rates from at least 3 lenders
A difference of 1 per cent per annum on a 15 lakh loan over 12 years represents approximately 1.8 to 2.2 lakh in total interest. Public sector banks generally offer lower rates for domestic studies, while specialist NBFCs are more competitive for international studies above 30 lakh.
Tip 3: Choose the shortest tenure you can afford
Longer tenures reduce your monthly EMI but significantly increase total interest paid. On a 10 lakh loan at 10.5 per cent: a 7-year tenure means you pay approximately 3.9 lakh in total interest; a 15-year tenure means approximately 9.6 lakh in total interest. The calculator shows this difference instantly.
Tip 4: Make prepayments in the first 3 years of repayment
Since the early years of your loan are interest-heavy, prepaying even one extra EMI equivalent in year 1 or 2 of repayment reduces both the outstanding principal and the future interest burden disproportionately. Use the PlanMyReturns Loan Prepayment Calculator to quantify the exact savings from a prepayment.
Tip 5: Claim Section 80E every year without fail
Many borrowers forget to claim this deduction or are unaware there is no upper limit. Ensure you collect the interest certificate from your bank every March and include it in your income tax return under the old tax regime.
Education Loan vs Personal Loan for Education Funding
Some students consider taking a personal loan to fund education when education loan approval takes time. Here is why a dedicated education loan is almost always better:
| Feature | Education Loan | Personal Loan for Education |
|---|---|---|
| Interest rate | 8.5 to 14 per cent | 11 to 24 per cent |
| Moratorium period | Yes, typically 1 to 5 years | No, EMI starts next month |
| Section 80E tax benefit | Yes, 100 per cent on interest, 8 years | No tax benefit |
| Collateral | Optional for amounts under 7.5 lakh | Usually not required |
| Loan tenure | Up to 15 to 20 years | Maximum 5 years typically |
| Approval basis | Admission proof plus co-applicant income | Applicant’s current income |
The combination of lower interest rates, moratorium period, longer tenure and the Section 80E tax benefit makes a dedicated education loan significantly cheaper than a personal loan for funding higher education.
RELATED CALCULATORS
Plan Your Education Finances Completely
| Goal | Calculator to use |
|---|---|
| Check if you can afford the EMI on your expected salary | Loan Eligibility Calculator |
| See how much a prepayment saves in total interest | Loan Prepayment Calculator |
| Plan how much to save before taking a smaller loan | Education Planning Calculator |
| Check if old or new tax regime is better with Section 80E | Income Tax Calculator |
| Calculate home loan EMI for post-graduation property purchase | Home Loan EMI Calculator |
| Build an emergency fund before starting repayment | Emergency Fund Calculator |
Frequently Asked Questions
An education loan EMI calculator with moratorium period is a tool that accounts for the interest that accumulates during the moratorium (grace) period before adding it to the principal, then calculates the correct EMI on the inflated principal. Without moratorium support, a standard EMI calculator shows a lower EMI than you will actually pay, because it does not account for the capitalised interest. The PlanMyReturns calculator includes a moratorium field so you see your actual post-moratorium EMI and total repayment cost.
For public sector banks that use simple interest during moratorium:
Interest during moratorium = Loan Amount x (Annual Rate divided by 100) x (Moratorium Months divided by 12)
Example: 15 lakh loan at 10 per cent for 30 months moratorium = 15,00,000 x 0.10 x 2.5 = 3,75,000 rupees accumulated during the moratorium period.
This amount is added to the original principal, and your EMI is calculated on the combined total.
Monthly interest = (Outstanding Principal x Annual Interest Rate) divided by 1200
Example: Outstanding balance 10 lakh, interest rate 11 per cent.
Monthly interest = (10,00,000 x 11) divided by 1200 = 9,167 rupees per month.
If your EMI is 13,700 rupees, your principal repaid in that month is 13,700 minus 9,167 = 4,533 rupees.
Most Indian banks offer education loan repayment tenures of 5 to 15 years after the moratorium period ends. For high-value loans above 20 lakh (typically for overseas studies), some banks and NBFCs extend this to 20 years. The moratorium period (course duration plus 6 to 12 months) is separate and comes before the repayment tenure begins.
The moratorium period increases your total repayment in two ways. First, interest accumulates during the moratorium and is added to your principal, increasing the base on which future EMIs are calculated. Second, a longer overall loan period (moratorium plus repayment tenure) means more months of interest accumulation. A 24-month moratorium on a 15 lakh loan at 11 per cent adds approximately 3 to 4 lakh to the total amount repaid compared to starting repayment immediately.
Section 80E of the Income Tax Act allows a 100 per cent deduction on the interest paid on education loans with no upper limit on the deduction amount. The benefit is available for 8 consecutive years starting from the year you begin repaying the loan. It applies only under the old tax regime. It covers loans taken for the borrower’s own education or for a spouse, children or a student for whom the borrower is a legal guardian.
No. Section 80E is not available if you opt for the new tax regime. If your education loan interest deduction is significant (for example 1 lakh or more per year), staying on the old tax regime specifically to claim Section 80E may save you more in tax than the new regime’s lower slab rates. Use the PlanMyReturns Income Tax Calculator to compare both regimes for your income.
For studies in India, most public sector banks offer up to 10 lakh without collateral. With collateral, amounts up to 50 lakh or more are available from select banks. For international studies, banks like SBI and Bank of Baroda offer up to 1 to 1.5 crore with adequate collateral. Private NBFCs specialising in education loans can sanction up to 2 crore for studies at top-ranked foreign universities.
Paying at least the simple interest as it accrues during the moratorium period is almost always financially beneficial. It prevents capitalisation of interest and keeps your effective principal lower, reducing your post-moratorium EMI and total interest paid significantly. On a 20 lakh loan at 11 per cent with a 30-month moratorium, paying simple interest during the moratorium saves approximately 3.5 to 4.5 lakh in total repayment compared to the full moratorium option. If your family can manage it, paying interest during the course period is one of the best financial decisions an education loan borrower can make.
Step 1: Calculate interest accrued during moratorium = Loan Amount x (Rate/100) x (Moratorium Months/12)
Step 2: Add to original principal to get effective principal P
Step 3: Apply standard EMI formula: EMI = P x r x (1+r) raised to n, divided by [(1+r) raised to n minus 1]
Where r = monthly interest rate (annual rate divided by 1200) and n = repayment tenure in months.
The PlanMyReturns calculator does all three steps automatically when you enter the moratorium period.
Basic eligibility requires the student to be an Indian citizen with confirmed admission to a recognised institution. A co-applicant (parent or guardian) with stable income is mandatory for most lenders. Academic requirements are typically 50 to 60 per cent in the previous qualifying examination. For loans above 7.5 lakh, collateral security is required from most banks. Private NBFCs specialising in education loans may sanction unsecured loans above 7.5 lakh for admissions at top-ranked institutions.