Education Loan + Moratorium
Last updated: September 2026.
Balance when EMI starts
₹14,31,405
Accrued in moratorium ₹4,31,405
Monthly EMI after
₹23,030
× 84 months · total interest ₹9,34,519
If you serviced interest
₹5,83,037 saved
EMI would be ₹16,089
This table provides a year-by-year breakdown of your loan amortization schedule over the loan tenure.
How to use this calculator
- Enter loan amount, rate, course (moratorium) months and repayment tenure.
- See interest accrued during study, EMI after, and total cost.
- Compare paying interest during moratorium vs letting it compound.
What is this tool?
An education loan funds your course with a moratorium — no EMI during study. This calculator shows how interest grows during the moratorium, your EMI after, and how much paying interest early saves. Use it before accepting any study loan offer.
What lenders don't tell you (education loans)
Moratorium interest usually compounds — a 4-year course can add ~35–40% to what you repay on. Paying just the interest during study kills most of that growth.
Section 80E lets you deduct the full interest (no upper limit) for 8 years — only interest, not principal. EWS families under Rs. 4.5L income should also ask about the CSIS full-interest subsidy during moratorium.
Floating education loans carry zero prepayment charges since January 2026. No collateral needed up to Rs. 7.5 lakh in most bank schemes.
Read the full Real Loan & EMI Guide →
This tool gives an estimate for guidance only. It is not financial advice. Confirm rates with your bank or RBI before deciding.
Common education-loan questions
What is a moratorium period?
Course duration plus 6–12 months after, during which you may skip EMI. Interest still accrues — usually compounded — unless you service it.
Is education loan interest tax-free?
Interest paid is fully deductible under Section 80E for 8 assessment years, with no cap. Principal repayment gets no deduction.
What if I can't get a job after the course?
Talk to the bank before defaulting — restructuring and extended moratorium exist. Defaults destroy the CIBIL you'll need for every future loan.