An education loan EMI (Equated Monthly Installment) is the fixed amount you pay every month to your lender until the loan is fully repaid. Education loans are unique as they typically include a moratorium period (study period + 6 months grace period) during which you don't need to pay EMIs, but interest continues to accrue. This makes education loans one of the most accessible financing options for higher studies in India and abroad.
Most education loans offer a moratorium period that covers the course duration plus 6 months after course completion. During this period, only interest (typically compound) accrues, which gets added to the principal when repayment begins. This increases your loan amount and EMI. Use this calculator to understand your monthly obligations and total cost. For comprehensive loan planning, check our general EMI calculator, home loan eligibility calculator, or loan refinancing calculator if you're considering transferring your loan.
The EMI amount remains constant throughout the repayment tenure, but the principal and interest components change each month. Initially, a larger portion goes towards interest, and as you progress, more goes towards principal repayment. Longer tenure reduces EMI but increases total interest paid. Understanding this amortization schedule helps you plan prepayments effectively. If you're considering prepaying your loan, use our prepayment calculator to see the savings.
Education loans also offer tax benefits under Section 80E of the Income Tax Act. You can claim deduction on the interest paid (not principal) for up to 8 years from the start of repayment. The deduction is available for education loans taken for higher education (graduate or post-graduate) for yourself, spouse, or children. This makes education loans tax-efficient. Interest rates vary based on course, institution ranking, loan amount, and lender policies. Always compare offers from multiple lenders. For more information on education loan regulations, refer to the Reserve Bank of India guidelines.
Input the total education loan amount you need or have borrowed. This includes tuition fees, living expenses, and other approved costs.
Enter the interest rate offered by your lender. Education loan rates typically range from 8% to 12% p.a. Lower rates are available for premier institutions and courses.
Specify the total loan tenure (typically 5-15 years). This includes both moratorium period and repayment period.
Enter the moratorium period (course duration + 6 months grace period). Interest accrues during this period and gets added to principal.
Click "Calculate EMI" to see your monthly EMI, total interest (including moratorium interest), and total payment amount.
Review the detailed breakdown showing moratorium interest, repayment interest, and total cost to understand the complete loan picture.
Education loan EMI is calculated after the moratorium period ends. During moratorium (course duration + 6 months), interest accrues (typically compound) and gets added to the principal. The EMI is then calculated using the formula: EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is principal (original + moratorium interest), R is monthly interest rate, and N is number of repayment months. The EMI remains constant during repayment, but principal and interest components change each month.
Education loan interest rates typically range from 8% to 12% p.a. Rates vary based on course type, institution ranking, loan amount, lender policies, and special schemes. Premier institutions (IITs, IIMs) typically get 0.5-1% lower rates. Always compare rates from multiple lenders and negotiate for the best deal.
Moratorium period is the time during which you don't need to pay EMIs. It typically includes course duration plus 6 months grace period after course completion. During moratorium, interest accrues (usually compound) and gets added to principal. Some lenders allow paying only interest during moratorium to reduce total cost. Total moratorium can range from 1-5 years depending on course duration.
Section 80E allows deduction on interest paid (not principal) for up to 8 years from repayment start. Available for graduate/post-graduate courses for self, spouse, or children. No maximum limit on deduction amount. This significantly reduces your tax liability. Claim this when filing income tax returns.