Education Loan EMI Calculator
Enter your loan, rate, and study period to see what you actually owe when EMIs begin — moratorium interest included.
Runs entirely in your browser — your numbers never leave this page.
How it works
Education loans have a moratorium — no EMIs during the course plus 6–12 months after. But interest accrues the whole time:
- The silent cost: Rs 20L at 10.5% with a 3-year deferment grows to ~Rs 27.3L before your first EMI — Rs 7.3L of interest you never "paid".
- Beat it: servicing just the interest during the course (many banks allow it) keeps the principal frozen at Rs 20L.
- 80E deduction: the entire interest — no cap — is deductible for 8 years from when repayment starts. Big tax saver for working graduates.
- Rate concessions: 0.5% off for girl students at most public banks; another ~0.5–1% off if you service interest during the moratorium.
- Tenure: up to 15 years. Longer tenure = smaller EMI but much more total interest — pick the shortest EMI your starting salary survives.
- Collateral: loans above Rs 7.5L typically need collateral; below that, a co-applicant usually suffices.
Frequently asked questions
What is the moratorium period in education loans?
Course duration plus 6–12 months after. No EMIs are due, but interest accrues (simple or compounding per the bank) and gets added to the principal.
Should I pay interest during the moratorium?
If you can — it stops the principal from ballooning. Paying ~Rs 17,500/month interest on a Rs 20L loan during the course saves lakhs later.
Is education loan interest tax deductible?
Yes — section 80E allows deduction of the entire interest paid, with no cap, for 8 years from the start of repayment.
What is the interest rate on education loans in India?
Roughly 9–13% at public banks (lower for premier institutes and girl students), higher at NBFCs and private lenders.
Do I need collateral for an education loan?
Up to Rs 7.5L: usually just a co-applicant. Above that, banks typically ask for collateral (property, FD).
What is the maximum repayment tenure?
Up to 15 years at most banks. Longer tenure lowers the EMI but raises total interest significantly.
Can I prepay an education loan?
Yes — most banks allow prepayment without penalty. Bonuses in your first job years are perfect for this.
What happens if I don't get a job after the course?
Talk to the bank early — extensions and restructuring are possible. Ignoring it damages your CIBIL right as your career starts.
Are there subsidies for education loans?
The CSIS interest subsidy covers moratorium-period interest for economically weaker sections (family income under Rs 4.5L) — check eligibility.
Education loan vs personal loan for studies?
Education loans win: lower rates, moratorium, 80E deduction, and no prepayment penalty. Personal loans have none of these.