Student Finance

Education Loan EMI Calculator

Education loans are different. Calculate your true EMI by factoring in the "Moratorium Period" where interest silently piles up while you study.

Loan & Study Details

e.g. 2 for MBA, 4 for B.Tech.

Time after graduation before EMI starts.

Number of years you will pay EMIs.

Repayment Plan

Monthly EMI

₹44,770

For 84 months.

Base Loan Amount₹20,00,000
Moratorium Interest Accrued+₹5,75,000
Actual Principal for EMI₹25,75,000

The "Moratorium" Trap

  • What is the Moratorium? It is the holiday period during your course plus a grace period (usually 6-12 months after graduation) where you don't have to pay EMIs. However, the bank still charges interest during this time.
  • Simple Interest, Not Compound: By law, Indian banks can only charge simple interest during the moratorium. However, once the moratorium ends, this accrued interest is added to your base loan (capitalized), and your EMIs are calculated on this new, much larger principal.
  • How to save lakhs: If you or your parents pay off the simple interest during the study period (before the moratorium ends), it will not be added to your principal. This simple hack can reduce your final EMI significantly.
  • Section 80E Tax Benefit: The interest you pay on an education loan is 100% tax-deductible under Section 80E for up to 8 years once repayment begins. There is no upper limit on this deduction!