Education Loan EMI Calculator with Moratorium Period
This education loan EMI calculator shows your monthly EMI, the interest that builds up during the moratorium (study) period, your total interest, and total amount payable. Enter your loan amount, interest rate, tenure and course duration to see a full year by year repayment schedule and your estimated Section 80E tax benefit. All calculations run privately in your browser.
Key Takeaways
Quick Education Loan Scenarios
Education Loan Payment Breakdown
Disbursement
Education Loan Repayment Schedule (Year Wise)
| Year | Principal Paid | Interest Paid | Balance |
|---|
Use this free education loan calculator to find your monthly EMI, the interest that builds up during your moratorium period, your total interest cost, and a complete year wise repayment schedule. Built for Indian students and parents, it works for courses in India and abroad, supports any moratorium length, and estimates your Section 80E tax saving. No login, no data stored, everything runs in your browser.
What This Education Loan Calculator Does
An education loan calculator estimates your Equated Monthly Instalment (EMI) using your loan amount, interest rate and repayment tenure. This calculator goes further than a standard EMI tool. It also accounts for the moratorium period, the study phase during which you pay no EMI but interest keeps growing on your loan.
Here is everything this calculator shows you:
Monthly EMI after moratorium. The actual EMI you will pay once repayment begins, calculated on the correct post moratorium principal, not the original loan amount.
Interest accrued during moratorium. The most underestimated cost of an education loan. On a 10 lakh loan at 10.5 percent with a 24 month moratorium, roughly 2.1 lakh in interest gets added to your principal before you pay a single EMI.
Total interest and total payable. Your complete borrowing cost from disbursement to the final EMI.
Year wise repayment schedule. Principal repaid, interest paid and outstanding balance for every year of the loan.
Section 80E tax saving estimate. Education loan interest is fully deductible under Section 80E of the Income Tax Act with no upper limit. The calculator highlights this in your results.
Quick course presets. One click scenarios for MBA in India, MS abroad, Engineering and Medical courses.
Shareable plan and CSV download. Send your repayment plan to parents or an advisor via a personalised link, or download the full schedule as a CSV file.
What Is an Education Loan?
An education loan funds higher education costs when family savings fall short. It covers tuition fees, hostel and accommodation, books, laptops, exam fees and travel, including international flights for studies abroad.
In India, education loans are offered by public sector banks, private banks and NBFCs. What makes them different from every other loan is the moratorium period. Repayment does not start while you are studying. This makes borrowing possible for students with no income, but it also means interest quietly accumulates during your course. Understanding that trade-off is exactly why this calculator exists.
The Moratorium Period Explained
The moratorium period is the time during which no EMI is due on your education loan. It typically equals your course duration plus 6 to 12 months for job placement. For a 2 year MBA, the moratorium is usually 30 to 36 months in total.
What happens to interest during the moratorium?
Interest never stops. It keeps accruing on your outstanding balance every month of the moratorium. Most public sector banks charge simple interest during this phase and add it to your principal when repayment begins. Many private banks and NBFCs compound it, which inflates the principal further.
This is why your post moratorium EMI is always higher than a plain EMI calculator suggests. The longer the moratorium, the bigger the effective principal, the bigger the EMI.
Three ways to handle the moratorium
Full moratorium (pay nothing). The default choice for students with no income. Interest capitalises fully. Highest EMI and highest total cost.
Partial moratorium (pay simple interest only). You pay a small monthly amount covering interest as it accrues. Nothing gets added to principal. Meaningfully lower EMI later and large savings in total interest.
No moratorium (full EMI from month one). Lowest total cost, but needs income or family support from day one.
This calculator supports all three. Set the moratorium field to zero to model immediate repayment, or enter your course duration in months to see the full capitalisation effect.
What the moratorium actually costs: a worked example
Loan of 20 lakh at 10.5 percent for 10 years.
| Scenario | EMI | Total Interest | Total Payable |
|---|---|---|---|
| No moratorium | About 27,000 | About 12.4 lakh | About 32.4 lakh |
| 24 month full moratorium | About 33,000 | About 15.2 lakh | About 35.2 lakh |
The 24 month moratorium adds roughly 2.8 lakh to your total repayment. Paying even simple interest during the course removes most of that extra cost. Test your own numbers in the moratorium field above.
Education Loan EMI Formula
Education loan EMI uses the standard reducing balance formula, with one extra step for the moratorium.
Step 1: Interest during moratorium
Interest = Loan Amount x (Annual Rate / 100) x (Moratorium Months / 12)
Example: 10 lakh at 10.5 percent with a 24 month moratorium accrues 2,10,000 rupees. Effective principal becomes 12.1 lakh.
Step 2: EMI formula
EMI = P x r x (1 + r)^n / [(1 + r)^n – 1]
Where P is the effective principal after capitalisation, r is the monthly rate (annual rate divided by 1200), and n is the repayment tenure in months.
For the example above with a 10 year tenure: P = 12,10,000, r = 0.00875, n = 120. EMI works out to roughly 16,400 rupees per month.
Step 3: Monthly interest on any outstanding balance
Monthly interest = (Outstanding Principal x Annual Rate) / 1200
If your balance is 8 lakh at 10.5 percent, the interest portion of that month’s EMI is 7,000 rupees. The rest reduces principal. The year wise table above applies this logic to every month of your loan automatically.
How to Use This Calculator
Enter your loan amount. Include everything the loan will fund: tuition, hostel, books, travel and course expenses.
Set your repayment tenure. Typical Indian tenures: 5 to 7 years for loans under 4 lakh, 7 to 10 years for 4 to 15 lakh, 12 to 15 years above 15 lakh, and up to 20 years for high value overseas loans. Use the quick tenure pills to compare instantly.
Enter the interest rate. Current education loan rates in India (early 2026):
| Lender type | Typical rate range |
|---|---|
| Public sector banks with collateral | 8.5 to 9.5 percent |
| Public sector banks without collateral (up to 7.5 lakh) | 10 to 11 percent |
| Private banks (HDFC, ICICI, Axis) | 10.5 to 13 percent |
| Education loan NBFCs (Credila, Avanse, Auxilo) | 11 to 14 percent |
Most public sector banks offer women borrowers a 0.5 percent concession. Students admitted to IITs, IIMs and top ranked foreign universities often get preferential rates.
Add your moratorium period. Course duration plus 6 months for most government banks, plus 12 months for many private lenders. A 4 year BTech typically means 54 months. A 2 year MBA means about 30 months.
Click Calculate. Your EMI, moratorium interest, total interest, total payable and full year wise schedule appear instantly.
Why the Repayment Schedule Matters More Than the EMI
In the early years of repayment, most of your EMI goes to interest, not principal. On a typical 10 year education loan at 10.5 percent, about 60 to 70 percent of each first year EMI is pure interest. The balance only starts falling fast around year 7 or 8.
Sample schedule for 10 lakh at 10.5 percent over 10 years, no moratorium:
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 1 | About 64,000 | About 97,000 | About 9.36 lakh |
| 3 | About 78,000 | About 83,000 | About 7.87 lakh |
| 5 | About 95,000 | About 66,000 | About 6.17 lakh |
| 8 | About 1.28 lakh | About 33,000 | About 2.58 lakh |
| 10 | About 1.42 lakh | About 12,000 | 0 |
Reading this schedule tells you three things: when prepayments hurt the bank most (early years), what share of your post graduation salary the loan will consume, and whether a shorter tenure is worth the higher EMI.
How Much EMI Can You Afford?
A useful rule: your education loan EMI should not exceed 15 to 20 percent of your expected monthly take home salary after graduation.
If your course typically leads to a 60,000 rupee monthly take home, keep your EMI under 9,000 to 12,000 rupees. Work backwards from that number in the calculator to find the loan amount and tenure combination that stays affordable. Estimate your post graduation take home with the Take Home Salary Calculator.
Education Loan Eligibility in India
Student. Indian citizen with confirmed admission to a recognised institution. For India: UGC, AICTE or equivalent approved. For abroad: institutions in recognised global rankings.
Co-applicant. A parent or guardian with stable income is mandatory for most lenders. Their income decides your maximum eligible amount.
Academics. Typically 50 to 60 percent in the previous qualifying exam.
Collateral. Up to 4 lakh: no collateral under the IBA model scheme. 4 to 7.5 lakh: no collateral, but co-applicant mandatory. Above 7.5 lakh: collateral worth 100 to 150 percent of the loan, such as property, FDs, LIC policies or NSC certificates. Some NBFCs sanction unsecured loans above 7.5 lakh for top ranked institutions.
Check your borrowing capacity first with the Loan Eligibility Calculator, then return here to model the EMI.
Section 80E: The Tax Benefit Most Borrowers Underuse
Section 80E of the Income Tax Act allows a 100 percent deduction on education loan interest with no upper limit, for 8 consecutive years starting from the year repayment begins.
Who qualifies. The loan must come from a recognised financial institution and fund higher education of yourself, your spouse, your children or a student you are legal guardian to. Only the interest component qualifies, never the principal.
Old regime only. Section 80E is not available under the new tax regime. If your annual education loan interest is large, say 1 lakh or more, the old regime may beat the new regime’s lower slabs. Compare both with the Old vs New Tax Regime Calculator.
How much it saves. If you pay 1.1 lakh interest in a year and sit in the 30 percent bracket, you save 33,000 rupees in tax. Your effective interest rate drops from 10.5 percent to roughly 7.35 percent. Over 8 years, borrowers in the top bracket commonly save 1.5 to 4 lakh in total tax.
CSIS: Zero interest during moratorium for eligible students
Under the Central Sector Interest Subsidy Scheme, families with annual income up to 4.5 lakh get a full government interest subsidy during the moratorium for loans up to 10 lakh, at NAAC or NBA accredited institutions and CFTIs including IITs and NITs. Eligible students effectively pay zero interest during their course. Ask your bank about CSIS at application, not after.
Five Ways to Cut Your Total Repayment
Pay interest during the moratorium. On a 15 lakh loan at 11 percent with a 30 month moratorium, paying simple interest as it accrues saves roughly 2.7 to 3.5 lakh in total repayment. Compare by setting the moratorium field to zero.
Compare at least 3 lenders. A 1 percent rate difference on a 15 lakh loan over 12 years is roughly 1.8 to 2.2 lakh in interest. Public sector banks usually win for domestic study, NBFCs for large overseas loans.
Pick the shortest tenure you can afford. On 10 lakh at 10.5 percent, a 7 year tenure costs about 3.9 lakh in total interest while 15 years costs about 9.6 lakh. The calculator shows this gap instantly.
Prepay in the first 3 years. Early years are interest heavy, so early prepayments cut future interest disproportionately. Quantify exact savings with the Loan Prepayment Calculator.
Claim Section 80E every single year. Collect the interest certificate from your bank each March and file it under the old regime. There is no cap. Missing it is leaving money on the table.
Education Loan vs Personal Loan for Education
| Feature | Education Loan | Personal Loan |
|---|---|---|
| Interest rate | 8.5 to 14 percent | 11 to 24 percent |
| Moratorium | Yes, 1 to 5 years | No, EMI starts next month |
| Section 80E benefit | Yes, full interest for 8 years | None |
| Tenure | Up to 15 to 20 years | Usually 5 years max |
| Approval basis | Admission plus co-applicant income | Your current income |
Lower rates, the moratorium, longer tenure and 80E together make a dedicated education loan far cheaper. Compare your numbers using the Personal Loan Calculator if you are still weighing both.
Planning Before Borrowing? Start Earlier
If your child’s admission is still years away, saving beats borrowing. A monthly SIP started early can shrink or eliminate the loan you need later. Model your target corpus with the Education Planning Calculator and see what a monthly investment grows into with the SIP Calculator. Factor rising course fees using the Inflation Calculator, since education costs in India rise faster than general inflation.
Key Takeaways
Interest never pauses during the moratorium. It gets added to your principal and raises your EMI. Paying simple interest during your course is the single highest impact decision most borrowers can make. Section 80E makes education loan interest fully deductible for 8 years under the old regime with no cap. Keep your EMI under 15 to 20 percent of expected take home salary. And always compare 3 lenders before signing, because 1 percent matters over a decade.
Rates, eligibility norms and tax rules referenced here follow RBI lending guidelines, the IBA model education loan scheme and the Income Tax Act. Verify final terms with your lender since moratorium interest treatment varies between banks.
Frequently Asked Questions
It is a calculator that first adds the interest accrued during your study period to the principal, then computes EMI on that inflated amount. A standard EMI calculator ignores this and shows a lower EMI than you will actually pay. This calculator includes a moratorium field so your EMI reflects reality.
For public sector banks using simple interest: Interest = Loan Amount x (Annual Rate / 100) x (Moratorium Months / 12). A 15 lakh loan at 10 percent with a 30 month moratorium accrues 3.75 lakh, which is added to principal before EMI calculation. Private lenders often compound it, which costs more.
Monthly interest = (Outstanding Principal x Annual Rate) / 1200. On a 10 lakh balance at 11 percent, that is 9,167 rupees. If your EMI is 13,700 rupees, the remaining 4,533 rupees reduces your principal that month.
Most banks offer 5 to 15 years after the moratorium ends. For loans above 20 lakh, typically for overseas study, some lenders extend to 20 years. The moratorium is separate and comes before the repayment tenure starts.
Pay it if your family can manage. On a 20 lakh loan at 11 percent with a 30 month moratorium, paying simple interest during the course saves roughly 3.5 to 4.5 lakh in total repayment versus full moratorium. It is usually the best financial decision an education loan borrower can make.
No. Section 80E works only under the old regime. If your annual loan interest is around 1 lakh or more, staying on the old regime for the 80E deduction may save more tax than the new regime’s lower slabs. Compare both regimes before filing.
For studies in India, most public sector banks lend up to 10 to 15 lakh without collateral and 50 lakh or more with collateral. For studies abroad, banks like SBI offer up to 1.5 crore with collateral, and specialist NBFCs sanction up to 2 crore for top ranked universities.
Yes, in two ways. Accrued interest gets added to principal, raising the base for all future EMIs, and the longer overall loan life means more months of interest. A 24 month moratorium on a 15 lakh loan at 11 percent adds roughly 3 to 4 lakh to total repayment versus immediate repayment.
The Central Sector Interest Subsidy Scheme gives a full government interest subsidy during the moratorium for students from families earning up to 4.5 lakh annually, on loans up to 10 lakh at accredited institutions including IITs and NITs. Eligible students pay zero interest during their course.
Yes. Enter your loan amount, the rate quoted by your lender and your moratorium period. The MS Abroad preset (40 lakh at 11.5 percent for 15 years with a 24 month moratorium) gives a realistic starting point for overseas education loans.