Education Loan EMI Calculator – Plan Your Repayment After the Moratorium Period

The moratorium period is the most important feature that distinguishes education loans from other loans. Repayment does not begin immediately after disbursement, it starts after the course and a grace period.\n\nTypical moratorium structure:\nMoratorium Period = Course Duration + 6 to 12 months (grace period)\n\nDuring the moratorium, the borrower is not required to pay EMIs. However, interest continues to accrue on the outstanding loan amount. Depending on the lender, this interest is either:\n• Paid monthly by the borrower (or their parent/co-applicant) during the moratorium, keeping the principal unchanged\n• Capitalised, added to the principal at the end of the moratorium, increasing the amount on which repayment EMIs are calculated\n\nExample:\nLoan amount: ₹8,00,000 | Interest rate: 9% p.a. | Repayment tenure: 7 years (84 months)\nIf interest is not paid during moratorium (2-year course + 6-month grace = 2.5 years):\nInterest accrued during moratorium ≈ ₹8,00,000 × 9% × 2.5 = ₹1,80,000\nCapitalised principal at repayment start ≈ ₹9,80,000\nEMI on ₹9,80,000 at 9% for 84 months ≈ ₹15,755 per month\nTotal interest paid ≈ ₹3,43,420\nIf simple calculation on original disbursed amount (₹8,00,000):\nEMI ≈ ₹12,870 per month\nThe difference is significant, paying simple interest during the moratorium reduces your post-course EMI meaningfully.\n\nTax benefit under Section 80E:\nInterest paid on an education loan is fully deductible under Section 80E of the Income Tax Act for up to 8 consecutive financial years, starting from the year repayment begins. There is no upper limit on the deduction amount. This benefit applies under the old tax regime.\n\nSection 80E benefits are not available under the new tax regime. The calculator does not account for tax savings or moratorium interest. Use your post-moratorium outstanding balance as the input for the most accurate EMI estimate.