Education Loan EMI Calculator
An education loan differs from other loans in one important way: repayment usually begins after the course ends, following a moratorium covering the study period plus six to twelve months. Interest accrues during that moratorium, so the amount you start repaying is larger than the amount disbursed.
Monthly EMI
₹24,531
₹20 Lakh at 8.25% for 10 years
Interest is 47% of the amount borrowed over this tenure.
Year-by-year repayment schedule
How each year splits between interest and principal. Early years are mostly interest, which is why prepaying early saves so much more than prepaying late.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | ₹1,34,372 | ₹1,59,994 | ₹18,65,628 |
| 2 | ₹1,45,886 | ₹1,48,480 | ₹17,19,742 |
| 3 | ₹1,58,388 | ₹1,35,979 | ₹15,61,354 |
| 4 | ₹1,71,960 | ₹1,22,406 | ₹13,89,393 |
| 5 | ₹1,86,696 | ₹1,07,670 | ₹12,02,697 |
This calculator returns arithmetic on the figures you enter. It is not an offer, does not check your eligibility, and cannot predict the rate a lender will sanction. Loans Got Easy is an authorised Direct Selling Agent - we do not sanction, approve or disburse loans.
The moratorium is a deferral, not a holiday
During the moratorium you are not required to pay EMIs, but interest continues to accrue on the disbursed amount. On a 20 lakh loan at 10% with a four-year course and a six-month grace period, unpaid interest can add several lakh to the balance before the first EMI is due. Servicing simple interest during study, where the family can manage it, avoids that capitalisation entirely and is one of the highest-return decisions in the whole loan.
Disbursement follows the course, not the sanction
The sanction is for the full course cost, but the money is released semester by semester directly to the institution, with living expenses released as agreed. Interest accrues only on what has actually been disbursed, so the effective interest burden in year one is far smaller than the sanctioned amount would suggest. This is why the calculator on this page understates nothing but should be read as an upper bound during the study years.
Collateral requirements step up with amount
Loans up to around 4 lakh are generally granted without collateral or third-party guarantee. Between roughly 4 and 7.5 lakh, lenders typically require a guarantor. Above that, tangible collateral is usual. The thresholds vary by lender and by whether the course is domestic or overseas, and premier institutions often attract more favourable treatment on both collateral and rate.
Tax relief on the interest is uncapped
Section 80E allows a deduction for the full interest paid on an education loan for higher studies, with no monetary ceiling, for up to eight years starting from the year repayment begins. The deduction is available to the person repaying the loan. This is general information rather than tax advice; confirm how it applies to your circumstances with a chartered accountant.
Rates sourced from partner lender published rate schedules, last verified August 2026. Figures produced by this calculator are indicative and depend entirely on the inputs you provide. The rate you are offered is set by the lender based on your credit profile, income, employer, loan amount and tenure.
Frequently Asked Questions
At 10% p.a. over 10 years the EMI is approximately 26,430, with total interest of about 11.7 lakh. If interest accrued during a four-year moratorium is capitalised rather than serviced, the repayment balance is higher and so is the resulting EMI, which is why servicing simple interest during study is worth doing where possible.
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Rates last verified August 2026. Loans Got Easy is a loan advisory and Direct Selling Agent. We do not sanction, approve or disburse loans - the lender does, based on its own credit assessment.