Education Loan EMI Calculator — Study Loan Repayment Planner
Calculate education loan EMI after moratorium period, total interest payable, and repayment scenarios. Understand Section 80E deduction and government interest subsidies.
Education loans work differently from most loans. You borrow during college, but repayment starts only after you graduate — or sometimes 6–12 months after getting a job. This "moratorium period" is the defining feature, and it's also where most students lose track of the real cost.
The CalcHub Education Loan EMI Calculator shows your actual EMI after the moratorium, along with how much interest piles up while you're still in college.
How the Moratorium Works
During the study period plus 6–12 months (the moratorium), interest continues to accrue on the loan — but you're not required to pay EMIs. At the end of the moratorium, this accrued interest is either:
- Added to principal (most common) → you pay EMI on a larger amount
- Paid separately during the moratorium → keeps the principal clean, reduces total cost
Example — ₹10 lakh loan at 10.5% for a 2-year MBA:
- Interest during 2-year course: ~₹2,10,000
- Interest during 1-year moratorium: ~₹1,26,000
- Total added to principal: ~₹3,36,000
- Effective loan at repayment start: ~₹13,36,000
Now you're paying EMI on ₹13.36L, not ₹10L.
EMI After Moratorium
Repayment tenures post-moratorium (loan principal ₹10 lakh, 10.5% p.a.):| Effective Loan (with accrued interest) | 5-Year Repayment EMI | 7-Year EMI | 10-Year EMI |
|---|---|---|---|
| ₹10,00,000 (no moratorium) | ₹21,495 | ₹16,601 | ₹13,493 |
| ₹12,00,000 (2-year course) | ₹25,794 | ₹19,921 | ₹16,192 |
| ₹13,36,000 (2-year course + 1-year grace) | ₹28,733 | ₹22,181 | ₹18,030 |
Different Loan Amounts — Education Loan EMI Table
Post-moratorium, 7-year repayment at 10.5%:| Loan Amount | Monthly EMI | Total Interest | Total Repaid |
|---|---|---|---|
| ₹5,00,000 | ₹8,301 | ₹1,97,284 | ₹6,97,284 |
| ₹10,00,000 | ₹16,601 | ₹3,94,484 | ₹13,94,484 |
| ₹20,00,000 | ₹33,202 | ₹7,88,968 | ₹27,88,968 |
| ₹40,00,000 | ₹66,404 | ₹15,77,936 | ₹55,77,936 |
Section 80E — Unlimited Interest Deduction
Education loan interest is deductible under Section 80E with no upper limit. This is one of the most underutilised tax benefits.
- Available for 8 consecutive years from the year you start repaying
- Applies to loans taken for yourself, your spouse, children, or a student you're the legal guardian of
- Only the interest component is deductible (not principal)
- Available under both old and new tax regimes (80E is one of the rare deductions allowed in the new regime)
Government Interest Subsidy Schemes
| Scheme | Coverage | Benefit |
|---|---|---|
| Central Sector Interest Subsidy (CSIS) | Income ≤ ₹4.5 lakh/year, first degree courses | 100% subsidy during moratorium |
| Dr. Ambedkar Interest Subsidy | OBC/EBC students, abroad studies | 100% subsidy during moratorium |
| Padho Pardesh | Minority community, abroad studies | 100% subsidy during moratorium |
Education Loan Interest Rates (2026)
| Lender | Rate | Collateral Required |
|---|---|---|
| SBI Scholar Loan | 8.65–11% | None up to ₹7.5L; required above |
| Axis Bank | 13.70–15.20% | None up to ₹4L |
| HDFC Credila | 11–12% | Varies |
| NBFC (Avanse, Incred) | 11–16% | Varies |
Should I pay interest during the moratorium or let it accumulate?
If you can afford it, pay the interest during your study years (or ask parents to). It reduces the principal significantly at repayment start. If your family can pay just ₹5,000–₹8,000/month during a 2-year course, you save ₹2–3 lakh in total repayment. Run both scenarios in the calculator.
Does an education loan affect my future CIBIL score?
Yes. If you repay on time, it's a positive — it builds your credit history early. If you default or delay, it damages your score significantly. The moratorium period is reported to credit bureaus — banks usually don't report it as "overdue" during moratorium, but always confirm with your lender.
Can education loans be repaid early without penalty?
Most public sector banks don't charge prepayment penalties. Private lenders and NBFCs may charge 2–4% on the prepaid amount. If you land a good job and want to close the loan fast, check this clause before signing.
Related Calculators
- Home Loan EMI Calculator — housing loan planning
- Personal Loan EMI Calculator — unsecured loan comparison
- Income Tax Calculator India — plan 80E savings
- SIP Calculator — build repayment fund with SIP