Financial Calculators
Education Loan EMI Calculator
Education loans are quiet during the course and real afterwards. See the EMI that actually begins, moratorium included.
EMI after the moratorium
₹35,714
- Interest accrued during moratorium
- ₹7,60,000
- Principal when EMIs begin
- ₹27,60,000
- Total interest over the loan
- ₹22,85,647
Simple interest accrues during the moratorium and is added to principal when repayment begins, the common bank treatment. Paying the interest during the course, if possible, cuts the EMI meaningfully.
Why the EMI is higher than you expect
Most education loans allow a moratorium: the course period plus a grace period, during which no EMI is due. But simple interest accrues throughout and is added to the principal when repayment starts, so the EMI is computed on a larger amount than you borrowed.
Paying just the interest during the course, which many banks incentivise with a small rate concession, keeps the principal from growing and cuts the EMI meaningfully.
How the loan is modelled
Accrued = P x rate x moratorium months / 1200\nNew principal = P + accrued\nEMI = EMI(new principal, rate, tenure)Worked example: a Rs 20,00,000 loan at 9.5% with a 48-month moratorium accrues Rs 7,60,000 of interest, so EMIs begin on Rs 27,60,000; over a 10-year repayment the EMI is Rs 35,714 and total interest over the loan is about Rs 22,85,647.
Frequently asked questions
Is interest really charged during the moratorium?
Yes, simple interest accrues from each disbursement even though no EMI is due. It capitalises into the principal when repayment begins, which is why the EMI feels high.
Should the student or parents pay interest during the course?
If cash flow allows, yes. Servicing the interest keeps the principal unchanged and many banks offer a 0.5-1% concession for doing so.
Are there tax benefits on education loans?
Interest paid on an education loan qualifies for deduction under Section 80E for up to 8 years from the start of repayment, with no upper limit; conditions apply, so confirm current rules.
Does the calculator handle partial disbursements?
It assumes the full amount from day one, which slightly overstates moratorium interest. Real loans disburse semester-wise, so treat the figure as a conservative estimate.
Fund the dream, plan the repayment.
A clear repayment plan lets the graduate start their career free, not burdened.