Education Loan EMI Calculator

Repayment usually starts after a moratorium: the course duration plus 6–12 months. You don't have to pay during this time, but interest keeps accruing, typically as simple interest, and it's added to your principal when EMIs begin.

On a ₹15 lakh loan at 10% with a 4.5-year moratorium, about ₹6.75 lakh of interest builds up before your first EMI. Set the moratorium above to see it for your numbers.

If your family can pay just the interest during the course, the loan you start repaying stays at the original amount. Some banks also offer a concession (often 0.5–1%) for servicing interest during study.

• Interest deduction: under the old regime, the entire interest paid (no upper limit) has been deductible for up to 8 years from when repayment starts (Section 80E of the Income-tax Act, 1961). The Income-tax Act, 2025 renumbered this from April 2026, so check the current rules.
• Many banks offer loans up to about ₹7.5 lakh without collateral (often under the CGFSEL guarantee scheme). Higher amounts usually need collateral or a co-borrower.
• Rates are often linked to EBLR (floating), so the Rate change tab applies here too.

Your EMI stays the same, but its make-up changes every month. Early on, most of it is interest, because interest is charged on a large balance. Later, most of it repays principal.

On a typical ₹15 lakh, 10-year education loan at 10%, about 61% of what you pay in the first year goes to interest. The insights show this for your numbers, along with the month when principal first overtakes interest.

• One extra EMI a year: on a typical ₹15 lakh, 10-year education loan at 10%, it closes the loan 1 yr 1 mo early and saves about ₹1.08 L in interest.
• Raise your EMI by 5% each year as your income grows: on the same loan that saves about ₹1.52 L and finishes 2 yrs 1 mo early.
• Keep your credit score high (750+). It decides the spread your lender adds on top of the benchmark rate.
• Re-check your rate every year or two. If new customers get a better rate, ask your lender for a reset or move to a lower spread.

The EMI is ₹19,823 a month for 120 months. You would pay ₹8,78,713 in interest, ₹23,78,713 in total. Change the amount, rate or tenure above to see your own figures.

Reducing the tenure saves more interest. On this loan, prepaying ₹1,50,000 after 12 EMIs saves ₹1,93,196 if you keep the EMI and shorten the tenure, but only ₹78,075 if you keep the tenure and lower the EMI.

On a repo-linked (EBLR) floating loan your rate rises by the same amount at the next reset, which happens at least every 3 months. On this loan, a 0.25% rise after one year would either extend the tenure by 2 mos at the same EMI, or raise the EMI by ₹191 to keep the same end date. Lenders must let you choose.

A 0.5% fee on this education loan means you receive ₹14,92,500 but repay the same EMIs, so the true annual rate is 10.12% instead of 10%. Use the true rate to compare offers.

At 10% simple interest, ₹15 lakh builds up ₹6,75,000 of interest over a 54-month moratorium. If it is added to the loan, your EMIs are calculated on ₹21,75,000. Paying the interest while studying keeps the loan at ₹15,00,000.

RBI does not allow prepayment or foreclosure charges on floating-rate loans taken by individuals for personal (non-business) purposes. For loans sanctioned from 1 January 2026, most banks and larger NBFCs also cannot charge them on floating-rate business loans to individuals and small businesses.