How to use the Education Loan Moratorium Calculator
- 1. Enter your loanAmount, rate, course length and grace period.
- 2. Pick how interest runsSimple, compounded, or paid by you during study.
- 3. See the EMILoan at EMI start, monthly EMI and total repaid.
What the moratorium is
Most education loans let you skip EMIs while you study and for some months after, often 6 to 12. Interest still runs in that time. Many banks charge simple interest and add it to the loan when EMIs begin, which is why the loan is bigger than what you borrowed.
Example: ₹8 lakh at 9.5% for a 4-year course plus 12 months grace is 60 months. Simple interest adds 8,00,000 × 9.5% × 5 = ₹3.8 lakh, so EMIs start on about ₹11.8 lakh.
How to keep the loan small
Paying just the interest during the course stops the loan from growing, and even part payments help. Interest paid on an education loan can be deducted under section 80E for up to 8 years from the year you start repaying. Check your sanction letter for the exact rate, whether it is floating, and the moratorium length.
Reading the result
The loan at EMI start shows how much the moratorium added. The EMI is what you pay each month for the repayment period you chose, and the total repaid includes all interest. Try a shorter repayment period to see how much interest you save, and compare it with your expected first salary using the first salary budget planner. A good target is an EMI under about a fifth of your in-hand salary.
Frequently asked questions
Do I pay interest during the moratorium?
Interest is charged, but most banks let you defer it. Deferred interest is added to the loan.
Is it better to pay interest while studying?
Yes, if you can. It keeps the loan at the amount you borrowed and lowers the EMI later.
Is this calculator free?
Yes. It asks for your name and WhatsApp number once, at result time, and other Uncodemy tools then open without the form.