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Education Loan EMI Calculator — Calculations & Slabs for FY 2026-27

Enter your education loan amount, interest rate, and repayment tenure to compute your monthly EMI under the reducing-balance method.

1. Loan Specifications

Frequently Asked Questions (FAQ)

What is a moratorium period in an education loan?

A moratorium period is a holiday/grace period offered to student borrowers during which they do not have to pay any EMIs. Typically, this lasts for the duration of the study program plus 6 to 12 months, or until the student gets a job, whichever is earlier.

Does interest accrue during the moratorium period?

Yes, interest continues to accrue (usually as simple interest) during the moratorium period. This accrued interest is added to the principal amount when the repayment starts, resulting in a higher loan amount on which EMIs are calculated.

Is there any tax benefit on education loans in India?

Yes, under Section 80E of the Income Tax Act, the interest paid on an education loan is fully tax-deductible for up to 8 consecutive years starting from the year you begin repaying the loan. There is no upper limit on the deduction amount, but only the interest component is eligible, not the principal.

Can I pay interest during the moratorium period?

Yes, banks allow you to pay the accrued simple interest during the moratorium period. Doing so is highly recommended because it prevents the interest from compounding and being added to your principal, significantly lowering your future EMIs.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

💡 What Does This Calculator Do?

This calculator estimates the monthly EMI, total interest, and total payable amount for an education loan. Unlike normal loans, it accounts for a moratorium period (usually the study period plus a grace period of 6–12 months) during which interest accrues but no EMIs are paid.

engine_type: compiled | format: inr

📋 How to Use It

  1. 1
    Loan Amount (₹): Enter the total tuition and living expenses fee borrowed from the bank.
  2. 2
    Interest Rate (%): Enter the annual interest rate offered by the lender.
  3. 3
    Tenure (Years): Enter the repayment duration after the moratorium period ends (max 15 years).
  4. 4
    Moratorium Period (Months): Enter the study period plus the grace period when you do not pay EMIs.

🧬 The Logic Explained Simply

  • The Concept: During the moratorium period, simple interest accumulates on the borrowed amount. This accumulated interest is added to your original principal once the moratorium ends. Your EMIs are then calculated based on this new consolidated principal over the remaining repayment tenure.
  • The Formula:
  • Moratorium Interest = Principal × (Annual Rate / 12 / 100) × Moratorium Period (Months)
  • Principal at Repayment = Principal + Moratorium Interest
  • EMI = [Principal at Repayment × r × (1+r)^n] / [(1+r)^n - 1]

where r = Annual Rate / 12 / 100 and n = Tenure (Years) × 12.

💡 Real-World Calculation Breakdown

For example, you take a ₹10,00,000 education loan at a 10.5% interest rate, with a 10-year tenure and an 18-month moratorium period.

  • Moratorium Interest = ₹10,00,000 × (10.5% / 12) × 18 = ₹1,57,500
  • Principal at Repayment = ₹10,00,000 + ₹1,57,500 = ₹11,57,500
  • Monthly EMI = [₹11,57,500 × 0.00875 × (1.00875)^120] / [(1.00875)^120 - 1] = ₹15,618 per month
  • Total Amount Paid = ₹15,618 × 120 = ₹18,74,186
  • Total Interest Paid = ₹18,74,186 - ₹10,00,000 = ₹8,74,186

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