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FinCalc India

Education Loan EMI Calculator

An education loan funds tuition, living costs and related expenses for higher studies in India or abroad. Repayment usually begins after a moratorium that covers the course plus six months to a year.

This calculator estimates the EMI once repayment starts. Enter the sanctioned amount, the rate and the repayment tenure.

Assumptions used
  • EMI is for the repayment phase only; the moratorium is not simulated month by month.
  • Enter the post-moratorium principal (including capitalised interest) for an accurate EMI.

Enter your details

₹
50,0005,00,00,000

Total sanctioned amount, including any interest capitalised during study.

%
616
years
115
%
03

Results

Monthly EMI

₹26,987

Total Interest
₹12,38,440
Total Repayment
₹32,38,440
Processing Fee
₹10,000
Total Cost of Loan
₹32,48,440
  • Principal₹20.00 L(62%)
  • Interest₹12.38 L(38%)
Year-wise amortisation schedule (10 rows)
YearPrincipal PaidInterest PaidTotal PaidBalance
1₹1,19,486₹2,04,358₹3,23,844₹18,80,514
2₹1,32,653₹1,91,191₹3,23,844₹17,47,861
3₹1,47,272₹1,76,572₹3,23,844₹16,00,588
4₹1,63,502₹1,60,342₹3,23,844₹14,37,086
5₹1,81,521₹1,42,323₹3,23,844₹12,55,565
6₹2,01,525₹1,22,319₹3,23,844₹10,54,041
7₹2,23,734₹1,00,110₹3,23,844₹8,30,307
8₹2,48,390₹75,454₹3,23,844₹5,81,917
9₹2,75,763₹48,081₹3,23,844₹3,06,153
10₹3,06,153₹17,691₹3,23,844₹0

Values are aggregated per year; the final row may be a partial year.

How education loan repayment works

During the moratorium (course duration plus a grace period), the borrower may pay only simple interest, or nothing at all. Unpaid interest is added to the principal, so the amount on which EMIs are later computed is larger.

EMI = P × r × (1 + r)^n ÷ [ (1 + r)^n − 1 ]

  • P = principal at the end of the moratorium (sanctioned amount + capitalised interest)
  • r = annual rate ÷ 1200
  • n = repayment tenure in months

Paying the simple interest during the study period, even partly, keeps the principal from ballooning and noticeably lowers the eventual EMI.

Section 80E tax benefit

  • Under the old tax regime, the entire interest paid on an education loan for higher studies is deductible under Section 80E.
  • The deduction runs for up to 8 years from the year repayment starts, or until the interest is fully paid, whichever is earlier.
  • There is no cap on the interest amount, but there is no benefit on the principal. Confirm current rules for your assessment year.

Collateral and co-borrower

Loans above a threshold (often around ₹7.5 lakh) usually need tangible collateral and a co-borrower, typically a parent. Smaller loans may be unsecured against the co-borrower's income.

This calculator is for education and illustration only. Results are estimates based on the inputs and assumptions shown and are not financial, investment, tax or legal advice. Verify figures with your bank, a registered adviser or the relevant government department before acting.

Frequently asked questions

What is the moratorium period on an education loan?

It is the pause before EMIs begin, covering the course duration plus six months to one year. Interest still accrues during this time and is usually added to the principal if unpaid.

Should I pay interest during the study period?

If you can, yes. Paying the simple interest during the moratorium stops it from being added to the principal, which lowers the EMI and total cost once repayment starts.

Is education loan interest tax deductible?

Under the old regime, interest on a loan for higher education is fully deductible under Section 80E for up to 8 years from the start of repayment. The principal is not deductible.

Can the repayment tenure be extended?

Many lenders allow tenures up to 15 years and offer step-up EMIs that start low and rise as your income grows. Ask the lender about restructuring if you face difficulty.

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