Education Loan EMI Calculator
EMI after the moratorium, with interest added while studying
| Year | Phase | Interest | Principal repaid | You paid | Owed at year end |
|---|---|---|---|---|---|
| 1 | Study + grace | ā¹1,00,000 | ā¹0 | ā¹0 | ā¹11,00,000 |
| 2 | Study + grace | ā¹1,00,000 | ā¹0 | ā¹0 | ā¹12,00,000 |
| 3 | Study + grace | ā¹1,00,000 | ā¹0 | ā¹0 | ā¹13,00,000 |
| 4 | Repayment | ā¹1,26,411 | ā¹79,744 | ā¹2,06,155 | ā¹12,20,256 |
| 5 | Repayment | ā¹1,18,060 | ā¹88,095 | ā¹2,06,155 | ā¹11,32,161 |
| 6 | Repayment | ā¹1,08,836 | ā¹97,319 | ā¹2,06,155 | ā¹10,34,842 |
| 7 | Repayment | ā¹98,645 | ā¹1,07,510 | ā¹2,06,155 | ā¹9,27,332 |
| 8 | Repayment | ā¹87,388 | ā¹1,18,768 | ā¹2,06,155 | ā¹8,08,564 |
| 9 | Repayment | ā¹74,951 | ā¹1,31,204 | ā¹2,06,155 | ā¹6,77,360 |
| 10 | Repayment | ā¹61,212 | ā¹1,44,943 | ā¹2,06,155 | ā¹5,32,417 |
| 11 | Repayment | ā¹46,035 | ā¹1,60,120 | ā¹2,06,155 | ā¹3,72,297 |
| 12 | Repayment | ā¹29,268 | ā¹1,76,887 | ā¹2,06,155 | ā¹1,95,409 |
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Results are estimates, not financial advice. Rates, charges and rules change, so confirm with your bank, post office or a financial adviser before you decide. Terms of use
How to Use
- Enter the Loan amount and the Interest rate (per year) the bank has offered.
- Enter the Course duration in years and the Grace period after the course in months (usually 6 or 12 months). Together they make the moratorium, when no EMI is due.
- Enter the Repayment tenure in years. Under The bank pays out the loan, choose All at the start or Year by year as fees fall due.
- Under Interest while studying, choose Added to the loan (the usual case) or I pay it monthly.
- Your monthly EMI, the Loan when EMIs start, total interest and total paid update as you type. Scroll down for the charts and the year-wise schedule.
How an education loan EMI works
An education loan doesn't start with an EMI. While you study, and for a grace period after the course (often 6 or 12 months, or until you get a job if that's sooner), you don't have to repay anything. This is the moratorium. Interest is still charged during it, and what happens to that interest decides how big your EMI will be. This education loan EMI calculator works out both phases.
Interest during the moratorium
Banks normally charge simple interest on the amount actually paid out during the moratorium. If you don't pay it, it is added to the loan when repayment starts, and your EMI is calculated on the bigger amount. That's the common practice under the IBA model education loan scheme followed by most public sector banks, and it's what the "added to the loan" option does.
Loan when EMIs start = amount disbursed + unpaid moratorium interest
EMI = L Ć r Ć (1 + r)n Ć· [(1 + r)n ā 1]
Here L is the loan when EMIs start, r the monthly rate (annual rate Ć· 12 Ć· 100) and n the number of EMIs. Some lenders compound the moratorium interest or offer a small rate cut if you pay it while studying; ask yours.
Example: ā¹10 lakh for a 2-year master's
A ā¹10 lakh loan at 10%, paid out at the start of a 2-year course, with a 12-month grace period and 10 years to repay:
| Interest added to loan | Interest paid while studying | |
|---|---|---|
| Interest in the 36-month moratorium | ā¹3,00,000 (added) | ā¹3,00,000 (ā¹8,333 a month) |
| Loan when EMIs start | ā¹13,00,000 | ā¹10,00,000 |
| EMI for 10 years | ā¹17,180 | ā¹13,215 |
| Total interest | ā¹10,61,551 | ā¹8,85,809 |
Paying the interest as it falls due saves about ā¹1.76 lakh here, because the added interest itself earns interest for 10 years. If a parent can pay ā¹8,000 to ā¹9,000 a month during the course, it's usually worth it. If the bank pays the fees year by year, interest builds up more slowly, which you can see with the "Year by year" option.
Tax deduction on the interest (section 80E)
The interest you pay on a loan for higher education is fully deductible from your taxable income, with no upper limit. Principal repayments get nothing. Points to know:
- The loan must be from a bank, financial institution or approved charitable institution, for your own studies or those of your spouse, children, or a student you are the legal guardian of.
- The deduction runs for the year you start paying interest and the 7 years after it (8 years in all), or until the interest is fully paid, if sooner.
- It is available only in the old tax regime. From tax year 2026-27 the same deduction is section 129 of the Income-tax Act, 2025.
Applying for the loan
Education loans to Indian banks are applied for through the government's PM-Vidyalaxmi portal (pmvidyalaxmi.co.in), launched in November 2024, where you can compare and apply to several banks with one form. Students admitted to eligible institutions can get collateral-free loans, and those with a family income up to ā¹8 lakh a year can get a 3% interest subsidy on loans up to ā¹10 lakh. Check the current terms on the portal before you rely on them.