Education loan planning
Education Loan EMI Calculator.
Estimate your monthly installment for a domestic or overseas study loan, and see exactly how much interest builds up during your moratorium period before repayment even begins.
- Principal amount
- ₹15,00,000
- Total interest
- ₹10,81,344
- Total amount
- ₹25,81,344
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹68,182 | ₹1,46,930 | ₹14,31,819 |
| 2 | ₹75,319 | ₹1,39,793 | ₹13,56,499 |
| 3 | ₹83,207 | ₹1,31,905 | ₹12,73,292 |
| 4 | ₹91,920 | ₹1,23,192 | ₹11,81,372 |
| 5 | ₹1,01,546 | ₹1,13,566 | ₹10,79,826 |
| 6 | ₹1,12,178 | ₹1,02,934 | ₹9,67,648 |
| 7 | ₹1,23,924 | ₹91,188 | ₹8,43,723 |
| 8 | ₹1,36,903 | ₹78,209 | ₹7,06,821 |
| 9 | ₹1,51,236 | ₹63,876 | ₹5,55,585 |
| 10 | ₹1,67,073 | ₹48,039 | ₹3,88,511 |
| 11 | ₹1,84,567 | ₹30,545 | ₹2,03,943 |
| 12 | ₹2,03,895 | ₹11,217 | ₹48 |
Understanding the moratorium period
Most education loans don't require EMI payments during your course plus a 6-12 month grace period after you finish — but interest usually still accrues during this time. If you can pay even the interest portion during the moratorium, it prevents that interest from being added to your principal, which meaningfully lowers your eventual EMI. This calculator shows your EMI once regular repayment begins.
Frequently asked questions
How is education loan EMI calculated, and when does repayment start?
EMI uses the standard formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1). Most education loans offer a moratorium period — no EMI required during the course plus a 6–12 month grace period after — though simple interest often still accrues during this time and, if unpaid, gets added to the principal once EMIs begin.
Do education loans for overseas study cost more than domestic study loans?
Yes, typically. Overseas education loans usually carry higher rates (often 10–13%) than domestic study loans (8–11%), partly because they're more often unsecured or require a collateral-light structure, and loan amounts are larger.
Is collateral required for an education loan?
Loans up to ₹7.5 lakh are usually collateral-free under IBA model guidelines (with a third-party guarantor). Above that, most banks require collateral — property, fixed deposits, or other security — though several NBFCs and new-age lenders offer larger unsecured loans at a higher rate.
Are there tax benefits on education loan interest?
Yes — under Section 80E, the entire interest paid on an education loan (no upper limit) is deductible from taxable income for up to 8 years from the start of repayment, or until the interest is fully repaid, whichever comes first. This applies only to interest, not principal, and only under the old tax regime.
Can I prepay my education loan during the moratorium period?
Yes, and it's usually a good idea if you can — paying even simple interest during the moratorium (course + grace period) prevents it from being capitalized into the principal once EMIs start, which can meaningfully reduce your total repayment.