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Education Loan EMI Calculator (with Moratorium)

Education loans usually start EMIs after the course plus a grace period. Interest keeps building in that gap — see what it adds, and what paying it while studying saves.

During the moratorium

Assumes simple interest during the moratorium, as most Indian banks charge. Runs in your browser; nothing is stored.

Monthly EMI —
Interest during moratorium
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Amount you start repaying
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Total interest (all-in)
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Total you pay
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Monthly interest while studying
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Key facts

  • EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), with r = monthly rate and n = months.
  • Moratorium interest = loan × annual rate × moratorium years (simple interest), added to what you repay.
  • Paying just the interest while studying keeps the principal at the original amount.
  • Interest on an education loan is deductible under Section 80E for up to 8 years, under the old tax regime.
  • Rates vary by bank, course and collateral — use the rate on your sanction letter.

Worked example

₹10,00,000 at 10%, 5-year moratorium, 10-year tenure:

Moratorium interest ₹5,00,000 → repay ₹15,00,000 → EMI ≈ ₹19,823

Pay ₹8,333 a month while studying and the EMI drops to about ₹13,215.

FAQs

Is the moratorium interest simple or compound?

Most Indian banks charge simple interest during the moratorium, then add it to the principal. Some compound monthly — check your sanction letter.

Does Section 80E cover the principal?

No — only the interest, for up to 8 years from when you start repaying, and only under the old tax regime.

Should I pay interest during the course?

If anyone in the family can, it usually saves a lot: the interest doesn't pile onto the principal.

Official sources

RuleFormulaSourceAs per
Section 80E deduction Interest deductible for up to 8 years (old tax regime) Income-tax Act, 1961 — Section 80E verification pending —