Education Loan EMI Calculator

The moratorium is a repayment holiday that runs through your course plus a grace period of typically 6 to 12 months after you finish or land a job. During it you usually pay nothing, or only the interest. If you skip payments entirely, the interest that accrues is added to your principal, so your EMI is higher afterwards. Paying at least the interest during the moratorium keeps the loan from ballooning.

Education loan rates in India are generally around 8% to 13% a year, lower than unsecured personal loans because they are often backed by collateral or a co-applicant and sometimes subsidised. Loans for premier institutes, female students or those with a guarantor can attract lower rates. Enter the rate your bank quotes into the education loan EMI calculator to see the monthly EMI it produces.

Yes. Under Section 80E of the Income Tax Act, the entire interest you pay on an education loan for higher studies is deductible from your taxable income, with no upper limit on the amount. The benefit is available for up to 8 years starting from the year you begin repayment, which effectively lowers the real cost of the loan below the headline interest rate.

Education loans are usually repaid over 5 to 15 years after the moratorium ends, longer than car or personal loans so that a new graduate's EMI stays manageable. A longer tenure lowers the monthly EMI but raises the total interest paid over the life of the loan. Once you are earning, prepaying or shortening the tenure is an effective way to cut the total interest on your student loan.