How Education Loan Repayment Works
Most education loans in India have two phases. During the moratorium — usually the course duration plus 6 to 12 months — you may not have to pay EMIs, but interest can still build up. After that, the loan is repaid in EMIs like any other loan.
This calculator models the repayment phase. Enter the amount you expect to owe when EMIs begin — including any interest added during the moratorium.
How is the EMI Calculated?
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
For ₹15,00,000 at 10.5% repaid over 10 years, the EMI is about ₹20,240 and the total interest about ₹9,28,830. Choosing 7 years instead raises the EMI to about ₹25,291 but cuts the interest to about ₹6,24,445.
Paying Interest Early and Prepaying
If you or your family can pay the interest during the moratorium, the balance does not grow and your later EMIs are smaller. Once you start working, part payments help too: on the 10-year example, ₹2,00,000 paid after the 24th EMI (keeping the EMI the same) ends the loan 20 months sooner and saves about ₹2,22,695 in interest.
Tax Benefit Under Section 80E
Under the old tax regime, interest paid on an education loan for higher studies can be deducted under Section 80E for up to eight years from the year repayment starts. There is no upper limit on the interest deduction, but it applies to interest only — not principal. Tax rules change, so confirm with a tax professional.
Frequently Asked Questions
Does this calculator include the moratorium period?
Not yet. Most education loans have a moratorium (course period plus a few months) during which interest may accrue. This calculator starts from the point repayment begins, so enter the balance you expect to owe then — including any interest that will have been added during the moratorium.
Is education loan interest tax-deductible?
In India, Section 80E of the Income Tax Act allows a deduction for the interest (not the principal) paid on an education loan for higher studies, for up to eight years, under the old tax regime. Check the current rules or speak to a tax adviser for your situation.
Is the EMI calculated by this tool the same as my bank’s EMI?
It uses the standard monthly reducing-balance formula that most Indian banks and NBFCs use, so it should be very close. Your lender’s exact figure can differ slightly because of rounding, the date your first EMI falls on (broken-period interest), processing fees, insurance or a different interest-calculation method. Always confirm with your loan sanction letter.
Does the calculator store my numbers?
No. All calculations run inside your browser. The amounts you enter are not sent to our server or saved anywhere.