When do education loan EMIs begin?

EMIs usually start after a moratorium period, which is the course duration plus a grace period of six months to one year. This lets graduates settle into a job before repaying.

Do I need collateral for an education loan?

Loans up to a certain limit are often collateral-free, especially for recognised institutions. Larger amounts, particularly for studies abroad, may require security or a guarantor.

Does interest accrue during the moratorium?

Yes, interest generally accrues during the moratorium. Paying the simple interest during this period prevents it from being added to the principal and increasing later EMIs.

Loan EMI

Education Loan EMI Calculator

Invest in education and repay comfortably after graduation.

Instant results Free · no sign-up Charts & breakdown

Loan Amount

₹50K₹10,00,000₹1.5Cr

Interest Rate (% p.a.)

7%11.0%16%

Tenure

110 yrs15

Monthly EMI

₹13,775

Principal: ₹10,00,000
Total interest: ₹6,53,000
Total payable: ₹16,53,000

Year-by-year breakdown

Year	Principal	Interest	Balance
1	₹58,175	₹1,07,125	₹9,41,825
2	₹64,907	₹1,00,393	₹8,76,918
3	₹72,418	₹92,882	₹8,04,500
4	₹80,798	₹84,502	₹7,23,702
5	₹90,148	₹75,152	₹6,33,554
6	₹1,00,580	₹64,720	₹5,32,974
7	₹1,12,219	₹53,081	₹4,20,756
8	₹1,25,204	₹40,096	₹2,95,551
9	₹1,39,693	₹25,607	₹1,55,858
10	₹1,55,858	₹9,442	₹0

About the Education Loan EMI Calculator

An education loan funds tuition, living costs and related expenses for higher studies in India or abroad. A distinctive feature is the moratorium period: repayment usually begins only after the course ends plus a grace period of six months to a year, giving graduates time to find a job before EMIs start. Interest, however, may accrue during this period, so understanding how it is treated matters for your final repayment burden.

The EMI is calculated on a reducing balance using EMI = P x r x (1 + r)^n / ((1 + r)^n - 1). Education loans often carry moderate interest rates, and loans up to certain limits may need no collateral, especially for premier institutions. Under Section 80E, the entire interest paid on an education loan is deductible from taxable income for up to eight years, which can substantially reduce the effective cost for the borrower or the co-applicant parent.

Because repayment starts after studies, plan for the fact that interest builds up during the course. Servicing at least the simple interest during the moratorium keeps the balance from ballooning. Use this calculator to see the EMI once repayment begins, and choose a tenure that a fresh graduate's expected salary can support without difficulty in the crucial early years of a career.

How to use it

Repayment usually starts after a moratorium of course duration plus six to twelve months.
Interest paid on an education loan is fully deductible under Section 80E for up to eight years.
Servicing simple interest during the study period stops the outstanding balance from growing.
Loans up to a threshold may not need collateral, particularly for reputed institutions.

FAQ