How to use the Education Loan EMI Calculator
- 1. Enter the loanType the loan amount and the yearly interest rate.
- 2. Set the moratoriumEnter the course plus grace period, and how the interest is handled.
- 3. See your EMIGet the EMI after study, total interest and the yearly schedule.
How a moratorium changes your EMI
A moratorium is the period, usually the course plus a grace period, when you do not have to pay EMIs. Interest still runs during this time. This tool treats it as simple interest: moratorium interest = loan × yearly rate × moratorium years.
Take ₹10,00,000 at 10% with a 48-month moratorium and 7 years of repayment. Moratorium interest is ₹4,00,000. If it is added to the loan, your EMI starts on ₹14,00,000 and comes to ₹23,242. Total interest is ₹9,52,299, including the moratorium amount.
Now choose to pay interest monthly during study. You pay ₹8,333 a month for 48 months, and the EMI after the course falls to ₹16,601. Enter both options in the tool to compare the total cost for your own loan.
Ways to reduce your education loan cost
- Pay interest during study if you can. Even a part-time income can stop the balance growing.
- Ask about staged release. Many banks release fees term by term, so less interest builds up than this tool shows, as it assumes the full amount on day one.
- Check how interest is added. Some lenders compound interest during the moratorium. Your sanction letter will say.
- Prepay once you start earning. Enter an amount in the extra payment box to see the time saved.
Interest paid on an education loan may qualify for a tax deduction in the old regime for a limited period. Check the current rules, and test your numbers in the old vs new tax regime calculator. To compare other borrowing, use the personal loan EMI calculator. Planning to save for a course instead? The SIP calculator shows what monthly saving can build.
Frequently asked questions
Is interest charged during the moratorium?
Yes, on most loans. A moratorium pauses the EMI, not the interest. The tool shows both choices: adding it to the loan or paying it monthly.
What if I have no moratorium?
Enter 0 months. The EMI then starts on the original loan amount.
Does the tool show government interest subsidy?
No. If you qualify for a subsidy scheme, your real cost will be lower. Ask your bank.
Is this tool free?
Yes. It is free, and we ask for your name and WhatsApp number once when you view your result. All other Uncodemy tools then open without the form.