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Education Loan EMI Calculator (with Moratorium Interest)

This education loan EMI calculator shows what you will repay on a student loan for study in India or abroad. Pick a lender or type a rate, enter the course length and grace period, and choose how interest is charged while you study, to see what you will owe, the EMI after the moratorium and the total interest.

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Calculator and results

Borrowing ₹15,00,000 at 10.5% with a moratorium of 3 years, ₹4,72,500 of interest is added to the loan before EMIs start. You then owe ₹19,72,500, an EMI of ₹26,616 for 10 years, and ₹16,93,905 in total interest.

Picking a lender fills in its lowest published figure for that scheme. Your rate depends on your profile, course or vehicle, and can be higher. Compare all education loan rates

₹

The amount disbursed. Interest during the moratorium is worked out for you.

%
months
months

Check your sanction letter for the exact repayment holiday.

Interest during the moratorium

Assumption: Many lenders charge simple interest during the moratorium, but check your sanction letter. If interest compounds monthly instead, the moratorium interest would be ₹5,52,575.

Your tax slab (old regime)

Plus 4% cess. Surcharge is not included.

EMI after moratorium

₹26,616

for 10 years, from month 37

Moratorium interest

₹4,72,500

over 3 years, added to the loan

Owed when EMIs start

₹19,72,500

Total interest

₹16,93,905

₹12,21,405 in EMIs + ₹4,72,500 moratorium

Total payment

₹31,93,905

Est. 80E tax saving

₹3,60,842

old regime, 30% slab + cess, 8 years

Amount borrowed vs interest

Total₹31.94 L
Principal
47%
₹15,00,000
Total interest
53%
₹16,93,905

Section 80E estimate by year

Interest paid each year from the first disbursement, and the estimated tax saving
YearInterest paidTax saved
Year 4₹2,01,548₹62,883
Year 5₹1,88,562₹58,831
Year 6₹1,74,144₹54,333
Year 7₹1,58,137₹49,339
Year 8₹1,40,366₹43,794
Year 9₹1,20,636₹37,639
Year 10₹98,733₹30,805
Year 11₹74,416₹23,218
Year 12₹47,418Outside limit
Year 13₹17,446Outside limit

Years are 12-month periods from the first disbursement, not financial years. Interest added to the loan during the moratorium is repaid inside the principal part of later EMIs; this estimate counts only interest you pay as interest, which is what your lender’s interest certificate shows. The saving also needs enough taxable income to absorb the deduction. ₹64,864 of interest falls after the 8-year window.

Compare repayment tenures

EMI and interest on the amount owed when EMIs start
TenureEMIInterest in EMIs
5 years₹42,397₹5,71,298
7 years₹33,258₹8,21,132
10 years₹26,616₹12,21,405
15 years₹21,804₹19,52,217

Amortisation Schedule

How each instalment splits between interest and principal over time.

Saved scenarios stay in this browser only. No sign-up.

EMI

₹26,616

Moratorium interest ₹4,72,500

PM-Vidyalaxmi: interest subvention

  • 3% interest subvention during the moratorium on loans up to ₹10,00,000, for students with annual family income up to ₹8,00,000 who get no other government scholarship or subvention. It goes to one lakh students a year, and from the second year it depends on satisfactory academic performance.
  • Collateral-free and guarantor-free loans for admission to qualifying institutions (top 100 in NIRF rankings, state government institutions ranked 101-200, and central government institutions) through merit-based admission.
  • A 75% credit guarantee for loans up to ₹7,50,000.
  • Rates are capped at the bank’s external benchmark lending rate (EBLR) + 0.5%. Repayment up to 15 years after the moratorium (course period + 1 year).
  • Under the related CSIS scheme, students with family income up to ₹4,50,000 on technical or professional courses get full interest subvention during the moratorium on loans up to ₹10,00,000.

The calculator does not deduct the subvention, because the official pages do not say how it is worked out. Apply and check eligibility on the official PM-Vidyalaxmi portal. Figures from PIB: Cabinet release, 6 Nov 2024, Lok Sabha reply, 27 Jul 2026 and press note, 29 Jul 2026; checked 21 Oct 2026.

Section 80E: what we confirmed

  • The deduction is the interest paid on a loan for higher education of yourself or a relative, with no rupee limit. Principal repayment does not count.
  • Available only under the old tax regime. It is not in the income tax portal’s new regime list.
  • The loan must come from a financial institution or an approved charitable institution.
  • Individuals only; HUFs cannot claim it.
  • The 8-year limit is in the Act itself. We could not open the Act text on an official site, so it is shown as unverified and you can switch it off above.

The Income-tax Act, 1961 was repealed on 1 April 2026 and replaced by the Income-tax Act, 2025; the AY 2026-27 return pages still use the 80E name. Sources: income tax portal, deductions for AY 2026-27, ITR-4 instructions, ITR-2 instructions and new Act FAQ; checked 21 Oct 2026.

What it is:
An education loan calculator covering the moratorium, the EMI after it, and the Section 80E deduction.
What it calculates:
Interest during the course and grace period, the amount owed when EMIs start, the EMI, total interest, and an estimated 80E tax saving.

Key Assumptions

  • The whole loan is disbursed at the start; banks that release it year by year charge less moratorium interest.
  • The rate stays the same through the moratorium and repayment.
  • The 80E estimate uses your old-regime slab plus 4% cess, ignores surcharge, and assumes enough taxable income to use the deduction.

How does the Education Loan EMI Calculator work?

Moratorium = course length + grace period. Interest runs from the first disbursement, even though EMIs have not started.

With simple interest, the interest is worked out on the amount borrowed only and added to the loan when EMIs start. With monthly compounding, interest is added to the balance every month, so it grows faster. If you pay the interest every month while studying, the loan does not grow at all and the later EMI is lowest.

Where a lender's own page says it charges simple interest during the moratorium, the calculator quotes it. For other lenders, simple interest is shown as an assumption, with the compounded figure next to it.

The EMI is the standard reducing-balance EMI on what you owe when the moratorium ends, over the repayment tenure you enter.

The Section 80E estimate multiplies the interest you pay each year by your old-regime slab rate plus cess. It counts interest paid as interest, and can stop after the 8-year limit set in the Act (which we could not confirm on an official page, so it can be switched off).

Worked example: a ₹10,00,000 loan at an assumed 9.5% for a 2-year course with a 6-month grace period builds up ₹2,37,500 of simple interest before EMIs start. If that is added to the loan, you owe ₹12,37,500 and the EMI over 10 years is ₹16,013. If you pay the interest while studying, the EMI on ₹10,00,000 is ₹12,940, and you save about ₹1,31,000 in total.

Compare lenders on the education loan interest rates page, which ranks banks and NBFCs for study in India and abroad. Public sector banks are usually cheapest, especially with collateral or for listed institutes; NBFCs often lend more without collateral at a higher rate.

Education loan EMI at 9.5% (interest paid during study)

Loan amount7 years10 years15 years
₹5,00,000₹8,172₹6,470₹5,221
₹10,00,000₹16,344₹12,940₹10,442
₹20,00,000₹32,688₹25,880₹20,884
₹40,00,000₹65,376₹51,759₹41,769

Monthly EMI after the moratorium on a reducing balance at an assumed 9.5%. If moratorium interest is added to the loan instead, the EMI is higher: ₹16,013 instead of ₹12,940 on ₹10 lakh over 10 years after a 30-month moratorium.

Education Loan EMI Calculator formula

Simple: I = P x r x m. Compounded: I = P x ((1 + r)^m - 1). Then EMI = B x r x (1 + r)^n / ((1 + r)^n - 1), with B = P + I

P
= amount borrowed
r
= monthly interest rate = annual rate / 12 / 100
m
= moratorium in months = course length + grace period
I
= interest that builds up during the moratorium
B
= amount owed when EMIs start (B = P if you pay the interest while studying)
n
= repayment tenure in months

80E saving = interest paid in the year x (slab rate + 4% cess), old regime only.

Education Loan EMI Calculator: worked example

A ₹15,00,000 loan at 10.5%, a 2-year course plus 12 months' grace (3 years moratorium), repaid over 10 years

Simple interest during the moratorium
₹4,72,500
Owed when EMIs start (simple interest)
₹19,72,500
EMI (simple interest)
₹26,616
Total interest (simple interest)
₹16,93,905
Moratorium interest if compounded monthly
₹5,52,575
EMI if compounded monthly
₹27,696
Interest paid while studying, per month
₹13,125
EMI if interest is paid while studying
₹20,240
Est. 80E tax saving, 30% slab + cess, first 8 years of interest (old regime)
₹3,60,842

Education Loan EMI Calculator: frequently asked questions

What is a moratorium period?
A gap before EMIs begin, usually the course length plus a grace period. Interest normally runs during this time even though you are not paying EMIs, and unless you pay it, it is added to the loan when repayment starts.
Is interest during the moratorium simple or compound?
It depends on the lender. Some lenders' pages say they charge simple interest during the study period and add it to the loan when EMIs start; the calculator quotes those pages. For others it shows simple interest as an assumption, with the compounded figure for comparison. Your sanction letter is the final word.
Should I pay the interest while I study?
If you can, yes. It stops the interest being added to the loan, which lowers the EMI and the total cost. Some lenders also offer a rate concession for paying interest during the moratorium; check your lender's terms.
How much tax can I save under Section 80E?
Under the old tax regime, the whole interest you pay in the year on a loan for your own or a relative's higher education is deductible, with no rupee limit. The deduction is not available under the new regime, and principal repayment does not count. The Act limits the claim to 8 years; we could not confirm that on an official page, so the calculator lets you switch the limit off.
What is PM-Vidyalaxmi?
A central government scheme for students admitted to qualifying institutions. It offers collateral-free, guarantor-free loans, a credit guarantee on smaller loans, and a 3% interest subvention during the moratorium for students from families earning up to ₹8 lakh a year, on loans up to ₹10 lakh. The details and sources are below the calculator.
Where do the lender rates come from?
Each lender's own rate page or rate document, linked next to the figure with the date we last checked it. Rows marked "rates actually charged" are the lowest rate the lender charged in a past period, not a starting rate. Finance companies (NBFCs) are labelled as such.
What is the EMI on a ₹10 lakh education loan?
About ₹12,940 a month over 10 years at 9.5%, if you pay the interest while studying. If 30 months of moratorium interest is added to the loan instead, the EMI rises to about ₹16,013.
Can I get an education loan without collateral?
Yes, usually up to ₹7.5 lakh at banks under the government's credit guarantee scheme, and higher at some NBFCs at a higher rate. Students at institutions covered by PM-Vidyalaxmi can get collateral-free, guarantor-free loans.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated