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

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.

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. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

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.

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. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

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