FREE CALCULATOR
Education Loan EMI Calculator India
Plan your education loan repayment — EMI after the moratorium period, Section 80E tax savings on full interest paid, and how prepayment reduces your total burden.
- Model EMI after the moratorium period — course duration plus the 6–12 month grace period.
- Section 80E allows full deduction on education loan interest with no upper limit under the old tax regime.
- See how capitalised interest during your study period increases the effective principal at repayment start.
Loan Details
Optional — Typical range: ₹30,000 – ₹2,00,000
Your Monthly EMI
₹24,515.97
for 85 months
Total Interest
₹5.59 L
Total Amount
₹20.59 L
Principal
₹15.00 L
Tax Savings
₹0
No deduction available under New Regime
Tax Savings
Section 80E not available under New Tax Regime. Switch to Old Regime above if you have opted out.
Amortization Schedule
* This calculator provides estimates only. Actual values may vary based on your specific loan terms, bank policies, and applicable regulations. Consult your bank and tax advisor for accurate figures.
How Is EMI Calculated?
Every loan EMI in India is calculated using the reducing-balance method. The formula is:
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ – 1]
- PPrincipal — the loan amount you borrow
- rMonthly interest rate — annual rate ÷ 12 ÷ 100 (e.g. 8.5% p.a. → 0.007083 per month)
- nTenure in months — e.g. 20 years = 240 months
Worked example: ₹50 lakh at 8.5% for 20 years — r = 0.007083, n = 240. EMI = 50,00,000 × 0.007083 × (1.007083)²⁴⁰ ÷ [(1.007083)²⁴⁰ – 1] ≈ ₹43,390/month. Total interest paid over 20 years ≈ ₹55.3 lakh — more than the original principal.
Sample EMI Reference Table
| Loan Amount & Rate | 5 years | 7 years | 10 years |
|---|---|---|---|
| ₹5 lakh @ 9% | ₹10,381 | ₹7,836 | ₹6,333 |
| ₹10 lakh @ 10% | ₹21,247 | ₹16,601 | ₹13,215 |
| ₹20 lakh @ 10.5% | ₹43,037 | ₹33,895 | ₹27,149 |
| ₹40 lakh @ 11% | ₹87,065 | ₹69,027 | ₹55,098 |
Post-moratorium EMI at stated rates. Rounded to nearest ₹10. Actual EMI may be higher if interest was capitalised during moratorium.
What Affects Your EMI?
Moratorium period — interest accrues during your course and grace period; if not paid, it capitalises and inflates your principal.
Collateral — loans above ₹7.5 lakh typically require collateral; secured loans carry significantly lower rates.
Institution type — IIT, NIT, and premier central university students get preferential rates from PSU banks.
Co-applicant income — a working parent or spouse as co-applicant strengthens the application and can reduce your rate.
Section 80E — full interest deduction under old regime for up to 8 repayment years effectively reduces your net interest cost.
Tips to Lower Your EMI
Pay interest during the moratorium period if possible — this prevents it capitalising and inflating your principal by 20–40%.
Government bank loans (SBI, Bank of Baroda) typically carry lower rates than private banks for education loans.
Choose an institution from the approved list — premier institution loans come with lower rates and simpler processing.
Section 80E has no upper limit — at the 30% tax bracket, deducting ₹2 lakh of interest saves ₹60,000 in tax annually.
Frequently Asked Questions
What is the EMI for a ₹10 lakh education loan?
For a ₹10 lakh education loan at 10% for 7 years (after moratorium), the EMI is approximately ₹16,601 per month. For a 10-year tenure, the EMI drops to ₹13,215. Note that capitalised moratorium interest may increase the effective principal.
What is the moratorium period in education loans?
The moratorium is the repayment holiday — typically the course duration plus 6 months (SBI) or 12 months (HDFC Credila, Axis) after course completion. During this period, interest accrues and is typically capitalised (added to principal) unless you pay it as it accrues.
What is the Section 80E tax benefit on education loans?
Section 80E allows deduction of the full interest paid on education loans — with no upper limit. It is available for up to 8 consecutive years from repayment start. Under the old tax regime at 30%, deducting ₹2 lakh in interest saves ₹60,000 in tax.
What is the maximum education loan amount in India?
For studies in India, most banks lend up to ₹10 lakh without collateral. For overseas education, limits range from ₹20 lakh (unsecured) to ₹1.5 crore (with collateral, for premier institutions like IITs or top foreign universities).
Is it better to pay interest during the moratorium period?
Yes, strongly recommended. Paying interest as it accrues prevents capitalisation — meaning your principal at repayment start equals the amount borrowed. Skipping it allows 2–5 years of interest to compound and add 20–40% to your principal, significantly raising your EMI.