About this calculator
Education loans usually come with a moratorium: no EMI while the course runs, plus 6–12 months after it ends. Interest still accrues during that period unless you service it, and that accrued interest is what makes the final EMI larger than students expect.
Enter the amount you expect to borrow and the tenure after the moratorium. If you can pay the interest during the study years, the total cost drops noticeably — the calculator lets you see the difference by comparing amounts.
How to use it
- Enter the amount you plan to borrow — not the asset price, unless you are financing the whole thing.
- Set the annual interest rate your lender has quoted, and the tenure in months.
- Read the monthly EMI, then check the amortisation table to see how much of it is interest in year one.
How the EMI is worked out
The calculator uses the standard reducing-balance formula used by every bank in India:
EMI = [P × r × (1 + r)n] ÷ [(1 + r)n − 1]
where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. In Excel the same answer comes from =PMT(rate/12, months, -amount).
What decides your interest rate
- Moratorium length: a longer study period means more accrued interest.
- Servicing interest during the course keeps the principal from growing.
- Secured loans (with collateral) price 1–2% lower than unsecured ones.
- Loans above ₹7.5 lakh usually require collateral or a guarantor.
- Section 80E allows a deduction on the interest paid for up to 8 years.
Indicative interest rates
Indicative ranges compiled 28 October 2026. Rates change with the repo rate and your credit profile — always confirm with the lender before deciding.
| Lender | Indicative rate | Typical tenure |
|---|---|---|
| SBI | 8.50% – 11.15% | Up to 15 years |
| Bank of Baroda | 8.60% – 11.00% | Up to 15 years |
| Canara Bank | 8.85% – 11.25% | Up to 15 years |
| HDFC Credila | 10.25% – 13.50% | Up to 12 years |
What an extra ₹2,000 a month would do
Same loan, same rate, one extra payment every month. This is the cheapest way to cut the total cost of any loan.
| Scenario | Monthly payment | Loan closes in | Total interest |
|---|
Floating-rate home loans to individuals carry no prepayment penalty in India. Personal and car loans often charge 2–5% of the outstanding amount — check before you prepay.
Year-wise amortisation schedule
How the loan actually unwinds: the interest share falls every year while the principal share rises.
Show the year-by-year break-up
| Year | Principal paid | Interest paid | Balance left |
|---|
Frequently asked questions
When does repayment start on an education loan?
Typically 12 months after the course ends, or six months after you get a job, whichever is earlier. Some lenders give a longer grace period for professional courses.
Is interest charged during the moratorium?
Yes. Interest accrues from disbursement. If you do not pay it during the study period, it is added to the principal and the EMI rises.
Can I claim a tax benefit on education loan interest?
Yes, under Section 80E, for up to eight years from the year repayment starts. There is no upper limit on the deduction, and it applies only to interest, not principal.
What collateral is needed for an education loan?
Loans up to about ₹7.5 lakh under the model scheme need no collateral. Above that, lenders ask for property, a fixed deposit or a third-party guarantee.
Does an education loan need a co-applicant?
Most lenders require a parent or guardian as co-borrower, and their income and credit score affect approval and pricing.
Can I prepay an education loan?
Yes, usually without penalty. Prepaying after you start earning is one of the highest-return financial moves available, since the interest is not tax-deductible once the loan closes.
Related calculators
Before you apply
Get the sanction letter and check three things: whether the rate is fixed or floating, what the processing fee is, and whether part-prepayment carries a charge. Those three lines decide the real cost of the loan, more than the headline rate does.
This page is updated when rate ranges change. Last verified 28 October 2026.