Plan your education loan repayment schedule once your moratorium period ends.
EMI = P × r × (1 + r)n / [(1 + r)n − 1]
Remember that interest typically accrues during your moratorium (study + grace) period even before EMIs begin — the actual amount you'll repay may be higher than your original sanctioned amount if that accrued interest gets added to the principal.
Most education loans offer a moratorium period — repayment typically begins 6-12 months after course completion or upon securing a job, whichever is earlier. This calculator shows your EMI once regular repayment begins.
Yes, interest usually continues to accrue during the moratorium period even though you are not required to pay EMIs yet. Some lenders allow you to pay just the interest during this period to reduce the total cost.
Yes, under Section 80E of the Income Tax Act, the interest paid on an education loan is fully deductible from taxable income for up to 8 years, with no upper limit on the deduction amount.
For loan amounts up to roughly ₹7.5 lakh, many banks offer education loans without collateral under government-backed schemes. Larger amounts, especially for studying abroad, often require collateral or a co-applicant.
Yes, most education loans allow prepayment without penalty once the moratorium period ends, and doing so can meaningfully reduce your total interest cost, especially if you prepay early in the repayment period.
An education loan helps fund tuition, accommodation, and other study-related costs, with repayment usually starting only after you complete your course and find employment. This calculator shows what your EMI will look like once regular repayment begins.
Since interest often accrues during your moratorium period, it's worth paying at least the interest portion during your studies if you can — this prevents the unpaid interest from being added to your principal, which would otherwise increase your EMI once repayment starts.
