Education Loan EMI Calculator
Know what the degree really costs per month — EMI, total interest and the year-wise balance on your education loan before the moratorium ends.
Year-wise repayment
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹59,743 | ₹1,02,179 | ₹9,40,257 |
| 2 | ₹66,327 | ₹95,595 | ₹8,73,930 |
| 3 | ₹73,636 | ₹88,286 | ₹8,00,294 |
| 4 | ₹81,751 | ₹80,171 | ₹7,18,543 |
| 5 | ₹90,760 | ₹71,162 | ₹6,27,783 |
| 6 | ₹1,00,762 | ₹61,160 | ₹5,27,020 |
| 7 | ₹1,11,867 | ₹50,055 | ₹4,15,153 |
| 8 | ₹1,24,195 | ₹37,727 | ₹2,90,958 |
| 9 | ₹1,37,882 | ₹24,040 | ₹1,53,077 |
| 10 | ₹1,53,077 | ₹8,845 | ₹0 |
Know the monthly cost of the degree
An education loan is unusual: repayment typically starts after the course ends, once the moratorium — course period plus a grace period, commonly a year — runs out. That gap makes it easy to borrow without ever seeing the monthly number a starting salary will have to carry.
This calculator shows that number now: the monthly EMI for the repayment phase, total interest, total repayment and the year-wise balance. Work it out per year of study, before each disbursement, so the final figure never arrives as a surprise.
The EMI formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P — the loan amount (principal)
- r — the monthly interest rate: annual rate ÷ 12 ÷ 100
- n — the number of monthly instalments (tenure in months)
This is the reducing-balance convention every bank uses: interest accrues each month on the balance still outstanding, so early EMIs are interest-heavy and later ones repay mostly principal. At a zero rate the EMI degrades to a flat principal split. The year-wise schedule under the widget buckets the instalments into 12-month windows whose closing balance lands exactly on zero.
How to use this calculator
- Enter the education loan amount — ₹1 lakh to ₹2 crore. Use the total you expect to owe when repayment starts, including any interest accrued during the moratorium.
- Set the interest rate (5–20% p.a.; education loans from public banks currently cluster around 8.5–11.5%, with concessions for female students at many lenders).
- Set the repayment tenure in years and months — up to 15 years here.
- Read the monthly EMI, total interest and total payment.
- Use the year-wise repayment table to plan prepayments as the salary grows — education loans usually have no foreclosure charges.
A worked example
₹10,00,000 at 10.5% p.a. repaid over 10 years:
- Monthly EMI: ₹13,493.50 for 120 months
- Total interest: ₹6,19,219.96
- Total payment: ₹16,19,219.96
A ₹10 lakh education ends up costing about ₹16.2 lakh when repaid over a decade — knowing that changes how you compare colleges, scholarships and self-funding.
The moratorium is not free
Interest accrues from each disbursement, including all through the course and grace period — typically as simple interest that is added to the balance when EMIs begin. Paying just the interest during study, which most banks allow and some reward with a rate concession, keeps the principal from swelling before you earn.
Tenure is the other lever: the same ₹10,00,000 at 10.5% costs ₹4,16,296.54 in interest over 7 years (EMI ₹16,860.67) versus ₹9,89,718.06 over 15 years (EMI ₹11,053.99). Pick the shortest tenure a realistic starting salary can carry, and prepay as increments arrive.
The entire interest paid on an education loan from a bank or approved financial institution is deductible — with no monetary cap — for up to 8 assessment years starting from the year you first pay interest. It covers higher education for yourself, your spouse or children. Note that 80E applies only under the old tax regime; there is no principal deduction under either regime.
Yes. Interest runs from each disbursement through the course and grace period, and is added to the amount your EMIs are computed on. On a multi-year course this can add a significant slice to the loan — servicing the interest during study keeps the principal at the disbursed amount.
Under the IBA model scheme, banks currently lend up to ₹7.5 lakh without collateral (with the Credit Guarantee Fund covering eligible loans); above that, tangible security or a third-party guarantee is standard. Thresholds are scheme-driven and revisable — several banks waive collateral entirely for premier-institute admits.
Yes, for eligible borrowers: the Central Sector Interest Subsidy (CSIS) pays the moratorium-period interest for students from lower-income households studying in India, and the PM-Vidyalaxmi scheme extends support for meritorious students. Income limits and coverage are revised periodically — check current criteria when you apply.
Be careful: 80E lasts at most 8 assessment years, and only helps under the old regime. A 15-year tenure means up to 7 years of interest with no deduction at all. If you rely on 80E in your maths, keep the tenure within its window — or better, treat the deduction as a bonus rather than a reason to pay more interest.