Plan repayments for studying in India or abroad.
Education loans have a distinctive structure: most lenders offer a moratorium period covering your course duration plus 6-12 months after graduation, during which you're not required to pay the full EMI (though interest usually still accrues, and many students choose to pay simple interest during this period to reduce the burden later). Once the moratorium ends, EMIs on the full principal — plus any accrued interest — begin.
This calculator models the repayment phase using the standard reducing-balance formula: enter the loan amount, the interest rate, and the repayment tenure (typically 5-15 years after the moratorium) to see your EMI, total interest, and full year-by-year schedule once repayment starts.
Loans for studying abroad are usually larger (covering tuition, living costs, and sometimes travel) and can carry either fixed or floating rates depending on the lender and whether the loan is in INR or a foreign currency. Government-backed schemes and public sector banks often offer relatively lower rates for India-based courses, especially for premier institutions, while NBFCs and dedicated education-loan lenders tend to move faster for overseas admissions but at a higher rate.
A collateral-backed education loan (secured against property or a fixed deposit) usually gets a meaningfully lower rate than an unsecured loan, so it's worth comparing both if you have the option — the difference compounds significantly over a 10-15 year repayment tenure.
For example, a ₹15,00,000 education loan at 10% annual interest repaid over 10 years works out to an EMI of about ₹19,823 a month, with total interest of roughly ₹8,78,713 — a total repayment of about ₹23,78,713.
$19,823
$878,713
$2,378,713
Principal · 63%
$1,500,000
Total Interest · 37%
$878,713
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| 1 | $92,013 | $145,859 | $1,407,987 |
| 2 | $101,648 | $136,224 | $1,306,340 |
| 3 | $112,292 | $125,580 | $1,194,048 |
| 4 | $124,050 | $113,821 | $1,069,998 |
| 5 | $137,040 | $100,832 | $932,958 |
| 6 | $151,389 | $86,482 | $781,569 |
| 7 | $167,242 | $70,629 | $614,327 |
| 8 | $184,754 | $53,117 | $429,573 |
| 9 | $204,100 | $33,771 | $225,472 |
| 10 | $225,472 | $12,399 | $0 |
What is a moratorium period on an education loan?
It's the period — typically your course duration plus 6 to 12 months — during which lenders don't require full EMI payments, giving you time to find employment. Interest usually continues to accrue during this period unless you choose to service it, which is why many students pay simple interest during their studies to avoid it compounding into the principal.
Is education loan interest tax deductible in India?
Yes — under Section 80E of the Income Tax Act, the interest paid on an education loan (for yourself, spouse, or children) is fully deductible from taxable income for up to 8 years, with no upper limit on the amount. This calculator models the loan mechanics only; consult a tax advisor for your specific deduction.
Do I need collateral for an education loan?
Loans up to roughly ₹7.5-10 lakh (limits vary by lender and scheme) are often available without collateral, especially for recognized institutions. Larger loan amounts, particularly for overseas study, typically require collateral such as property or a fixed deposit to secure a lower interest rate.
What happens if I don't get a job right after graduation?
Most lenders build in the moratorium precisely for this reason, and some offer a further grace period or restructuring if you're still job-hunting. Contact your lender before you miss a payment — proactively discussing your situation almost always gets a better outcome than defaulting silently.
How much education loan EMI should I expect after graduation?
Enter your expected loan amount, the rate your lender quoted, and your intended repayment tenure into the calculator above — it will show the EMI you should budget for once your moratorium ends and full repayment begins.