With this education loan EMI calculator you can see the instalment due once repayment begins and the interest over the loan. Education loans have a twist: repayment usually begins after the course ends plus a grace period, called the moratorium, and interest keeps running during that time. This page shows how to include that interest so the EMI you plan for is the real one.
The calculator opens with ₹10 lakh at 10% for 7 years. Change the amount to the balance you expect at the end of the moratorium.
At a glance
- MoratoriumCourse period plus a grace period, often 6 to 12 months
- Interest during studyUsually simple interest, added to the loan if unpaid
- Example₹10 lakh at 10%, unpaid interest for 2.5 years
- Balance at repaymentAbout ₹12.5 lakh
- EMI over 10 years₹16,519 instead of ₹13,215
- Repayment periodOften up to 10 to 15 years
How to use the education loan EMI calculator
- Find your balance on the day repayment starts: the amount disbursed plus any interest you did not pay during the course and grace period.
- Enter that figure in the amount box.
- See all loan types on the EMI hub if you also carry other loans.
- Type the rate and the repayment years.
From there the student loan calculator gives the instalment, the remaining interest and the yearly balances. Term by term disbursal means less study period interest than a single upfront payout; your lender can estimate the starting balance for you.
Worked example: paying or skipping interest during study
Picture ₹10 lakh borrowed at 10% for a two year course, followed by six months of grace. Assume the full amount is paid out at the start.
| Choice during study | Balance when EMIs start | EMI for 10 years | Interest after study |
|---|---|---|---|
| Pay interest monthly while studying | ₹10,00,000 | ₹13,215 | ₹5,85,809 |
| Pay nothing until the course ends | about ₹12,50,000 | ₹16,519 | ₹7,32,261 |
Paying about ₹8,300 a month in interest during study keeps the later EMI ₹3,300 lower and saves well over ₹1 lakh overall. Many families pay at least part of the interest during the course; some lenders reward that with a small rate concession.
Education loan interest: what affects the rate
- Course and institution: premier institutes often get lower rates and higher limits without collateral.
- Collateral: secured loans cost less. Smaller loans can be given without collateral under a government credit guarantee scheme.
- Co borrower: a parent or guardian is usually a co borrower; their income and credit score matter.
- Floating vs fixed: most education loans float with a benchmark.
- Women students sometimes get a small concession.
Government schemes for interest subsidy on education loans have income and course conditions. Check the Vidya Lakshmi portal for the current schemes and to apply to several banks at once.
Study abroad loans
Loans for study abroad are larger and often need collateral. Same formula, different costs:
- Loans may be taken in rupees while fees are paid in foreign currency, so a weaker rupee raises the loan needed.
- Processing fees and loan insurance can be higher.
- Money sent abroad for education may attract tax collected at source above a threshold, which is adjustable against your tax.
Plan the EMI against a realistic starting salary, not the best case. If repayment will be from a foreign salary, also think about currency moves over 10 years.
Repaying an education loan faster
Floating rate student loans have no part payment penalty, so extra money can go in whenever you have it. A bonus in the first year of work cuts interest the most. The prepayment calculator works for education loans too. To see what share of income the EMI will take, run the loan eligibility calculator with your expected pay.
Tax on education loan interest
The old regime has long allowed a deduction, with no cap, for interest on a higher studies loan for yourself, your spouse or children, for up to 8 years from when repayment begins. Principal does not qualify. With the tax law now rewritten as the new Income-tax Act, confirm the current position and whether it applies under your chosen regime with a tax adviser. All figures here ignore tax savings.
Frequently asked questions
When does the education loan EMI start?
Usually after the course ends plus a grace period, often 6 to 12 months or until you get a job, whichever is earlier. Check your loan agreement.
Is interest charged during the moratorium?
Yes. Plain interest usually runs from each disbursement; the simple interest calculator can estimate it. If unpaid, it is added to the loan when repayment starts.
How much will I repay monthly on ₹10 lakh borrowed for studies?
At 10% for 10 years, ₹13,215 if no interest was added during study, or about ₹16,519 if 2.5 years of unpaid interest was added.
Can I prepay an education loan?
Yes. Floating rate education loans to individuals carry no prepayment charge under RBI rules.
Do I need collateral for an education loan?
Not for smaller amounts covered by the government credit guarantee scheme. Larger loans, especially for study abroad, often need collateral.
Who repays if the student cannot?
The co borrower, usually a parent, is equally responsible for repayment.