Calculate your monthly EMI, total interest payable, and complete repayment schedule for any education loan — with moratorium period and prepayment support.
Currency:
Loan Details
₹
₹10K₹50L
Total education loan amount
% p.a.
1%24%
Most Indian banks: 8.5% – 13%
years
1yr30yr
Defaults to next month
₹
One-time lump sum after moratorium
Moratorium Period
Course duration + 6 months grace period — no EMI during this time
months
months
Usually 6–12 months after course ends
⚠️ Please fill in all required fields.
Monthly EMI
₹0
over 84 months
Principal
Interest
0%
interest
Loan Summary
Principal: —
Interest: —
▼ View Year-by-Year Amortisation Schedule
Year
Opening Balance
Principal Paid
Interest Paid
Total Paid
Closing Balance
How to Use This Student Loan EMI Calculator
Enter your loan amount (principal), the annual interest rate quoted by your bank, and the loan tenure in years. You can use the sliders for quick adjustments or type exact values directly. Optionally, set the repayment start month, add a one-time prepayment amount, and toggle the moratorium period if your loan includes a course duration + grace period before EMIs begin.
Click Calculate EMI to instantly see your monthly instalment, total interest payable, and a complete year-by-year amortisation schedule. The donut chart shows you visually what fraction of your total repayment goes toward interest — a number that often surprises first-time borrowers.
EMI Formula — How Education Loan EMI is Calculated
EMI stands for Equated Monthly Instalment. It is a fixed amount paid every month to repay both the principal and the interest on a loan. The standard EMI formula used by all banks and financial institutions is:
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
P = Principal loan amountr = Monthly interest rate (Annual rate ÷ 12 ÷ 100)n = Total number of monthly instalments (Years × 12)
For example, if you borrow ₹10,00,000 at 10% per annum for 7 years: P = 10,00,000; r = 10/(12×100) = 0.00833; n = 84. The EMI works out to approximately ₹16,601 per month, with a total repayment of ₹13,94,484 and total interest of ₹3,94,484.
What Happens During the Moratorium Period?
Most education loans include a moratorium — a period during which you are not required to make EMI payments. This typically covers your course duration plus 6–12 months after completion (giving you time to get a job). However, interest continues to accrue during this period. Some banks require you to pay the simple interest each month during moratorium (called “simple interest payment”), while others add the accrued interest to the principal — a process called interest capitalisation — which effectively increases your loan amount before repayments begin.
Education Loan Interest Rates — Indian Banks (2025)
Interest rates on education loans in India vary significantly based on the lender, loan amount, course type, institution, and collateral offered. Here is a reference table of rates from major lenders:
Bank / Lender
Interest Rate (p.a.)
Max Loan
Collateral Required
SBI Student Loan
10.15% – 11.15%
₹1.5 Cr
Above ₹7.5L
Bank of Baroda Baroda Scholar
9.70% – 10.60%
₹1.5 Cr
Above ₹7.5L
Axis Bank Education Loan
13.70% – 15.20%
₹75L
Case-by-case
HDFC Credila
11.00% – 13.50%
No cap
Property / co-borrower
Avanse Financial
11.00% – 15.00%
₹1 Cr
Flexible
ICICI Bank
10.50% – 12.50%
₹1 Cr
Above ₹40L
PNB Saraswati
10.65% – 11.15%
₹1 Cr
Above ₹7.5L
Union Bank (Union Education)
10.30% – 11.80%
₹1.5 Cr
Case-by-case
Rates are indicative and subject to change. Concession of 0.5% is available for female students from most PSU banks. A further 1% concession may apply if you service the interest during the moratorium period. Always confirm the exact rate with your lender before signing.
Smart Strategies to Repay Your Education Loan Faster
💡
Pay Interest During Moratorium
Even small monthly interest payments during your course can save lakhs. Preventing interest capitalisation is the single biggest lever you have on total cost.
📈
Step-Up EMIs
Some banks allow EMIs that increase each year as your salary grows. This can cut years off your loan tenure without burdening your early career cash flow.
🏦
Prepay Whenever Possible
Annual bonuses, increments, and windfalls used for prepayment reduce your principal directly. Even one extra EMI per year can cut 1–2 years from a 7-year loan.
🔁
Refinance at Lower Rates
Once you are employed and have a good credit score, you may qualify for a balance transfer to a lender with lower rates — sometimes saving 1–2% annually.
Tax Benefit on Education Loan Interest — Section 80E
Under Section 80E of the Income Tax Act, the interest paid on an education loan taken for higher education is fully deductible from your taxable income. There is no upper limit on the deduction amount. The benefit is available for a maximum of 8 years starting from the year you begin repayment or until the interest is fully repaid, whichever is earlier. This effectively reduces the real cost of your loan significantly, especially in the early years when interest payments are highest.
To claim this deduction, the loan must be taken from a financial institution or an approved charitable institution — not from family members or friends. You will receive a certificate from your bank each financial year showing the split between principal and interest paid, which you can submit while filing your income tax return.
Frequently Asked Questions
What is the moratorium period in an education loan? +
The moratorium period is the time during which you are not required to pay EMIs on your education loan. It typically covers your course duration (e.g., 2 years for an MBA) plus a grace period of 6–12 months after the course ends, giving you time to secure employment. During this period, most banks continue to charge interest on the outstanding principal. Depending on your loan agreement, this interest is either collected monthly (simple interest) or added to your loan principal at the end of the moratorium (capitalisation), which increases your total repayment amount.
How much education loan can I get without collateral? +
Under the Indian Banks’ Association (IBA) model education loan scheme, loans up to ₹7.5 lakh are available without any collateral security — only a co-borrower (parent or guardian) is required. For loans above ₹7.5 lakh, most public sector banks require tangible collateral such as property, fixed deposits, or government securities. Some private lenders and NBFCs offer higher collateral-free limits based on the institution’s ranking and the borrower’s profile, but usually at higher interest rates.
Does paying EMI during the moratorium period reduce my loan? +
Yes, and it makes a significant difference. If you pay the simple interest during the moratorium period, your principal remains unchanged and you avoid interest capitalisation. This means your EMI amount when regular repayment starts will be lower, and your total interest outgo will be substantially reduced. For example, on a ₹15 lakh loan at 10% for 2 years of moratorium, paying monthly interest of approximately ₹12,500 during the course prevents around ₹3+ lakh from being added to your principal before EMIs begin.
Can I prepay my education loan? Are there any prepayment charges? +
Yes, you can prepay your education loan, and it is strongly recommended when you have surplus funds. Most public sector banks (SBI, Bank of Baroda, PNB, etc.) do not charge any prepayment penalty on floating-rate education loans. Private banks and NBFCs may charge 1–4% of the prepaid amount — check your loan agreement. When making a prepayment, specifically instruct your bank to reduce the principal outstanding rather than the number of EMIs, and request a revised amortisation schedule to see the impact.
What happens if I can’t repay my education loan EMI? +
Missing EMIs has several consequences: late payment charges (usually 2% of the overdue amount per month), a negative impact on your CIBIL credit score, and eventual classification of the loan as a Non-Performing Asset (NPA) if you miss 3 consecutive EMIs. If you are facing difficulty, contact your bank proactively — most lenders have restructuring options, EMI deferments, or income-linked repayment alternatives, especially for recent graduates. The Central Sector Interest Subsidy Scheme (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL) also provide government support for eligible borrowers.
Is the interest rate on education loans fixed or floating? +
Most education loans in India are offered at floating interest rates, which are linked to the bank’s Marginal Cost of Funds-based Lending Rate (MCLR) or the External Benchmark Lending Rate (EBLR), typically the RBI repo rate. This means your EMI can change when the benchmark rate changes. Some lenders offer fixed-rate education loans — these provide predictability but may start at a higher rate. For long-tenure loans (7–15 years), floating rates have historically worked out cheaper in India, but your individual preference for certainty vs. savings should guide your choice.
