Principal Loan Amount
₹ 15,00,000
Interest Accumulated During Moratorium
₹ 6,30,000
Total Interest Payable
₹ 14,88,410
Monthly EMI (Post Moratorium)
₹ 24,904
About the Education Loan Calculator
Our free Education Loan Calculator is designed to help students and parents plan higher education financing for undergraduate or postgraduate studies in India or abroad. It computes your monthly EMI obligations while factoring in the crucial course duration and moratorium period.
Understanding Moratorium Periods on Education Loans
An education loan typically comes with a moratorium period, which covers the entire duration of the course plus a grace period (often 6 months to 1 year post-completion or upon securing employment). During this moratorium period:
- Borrowers are generally not required to pay mandatory EMIs while studying.
- However, simple interest continues to accumulate on the disbursed principal amount.
- At the end of the moratorium, accumulated interest is typically capitalized (added to the principal balance), which determines the new principal base for your post-moratorium EMI calculations.
How to Use the Calculator
Simply enter or adjust your financing details using the text inputs or range sliders:
- Education Loan Amount: The principal sanction amount approved for tuition and academic expenses.
- Interest Rate: The annual percentage rate charged by the lending bank or financial institution.
- Course / Moratorium Period: The total duration of study plus the post-graduation grace period in months.
- Repayment Tenure: The scheduled duration for repaying the loan after the moratorium ends.
Click the Calculate button to instantly view your accumulated moratorium interest, total interest payable, and post-moratorium monthly EMI.
Frequently Asked Questions (FAQs)
Can I pay interest during the moratorium period?
Yes, many banks offer interest concessions (such as a 0.5% to 1% rebate) if you choose to pay the accruing interest during the moratorium period rather than capitalizing it.
Are education loans eligible for tax deductions?
Yes, under Section 80E of the Indian Income Tax Act, you can claim a deduction for the interest paid on an education loan for higher studies without any upper monetary limit for up to 8 financial years.
What happens if I prepay my education loan?
Most public sector and private banks in India do not charge foreclosure or prepayment penalties on floating-rate education loans, allowing you to save significantly on total interest by paying off early.
