Education Loan EMI Calculator

Education loans designed for undergraduate, postgraduate, and international university studies differ significantly from retail loans. The most defining feature is the Moratorium Period (Study Period + Grace Period).

Borrowers are not required to repay the principal EMI while attending college. Under Indian banking norms (IBA model), the moratorium lasts for the Course Duration + 6 months to 1 year after graduation, or until the student secures employment, whichever is earlier.

A critical detail students often overlook is interest accrual during the moratorium:

• While regular EMIs are paused during your studies, the bank charges Simple Interest on the disbursed amounts throughout your college tenure.
• If you or your parents service this simple interest monthly during the study period, banks frequently offer a 1% interest rate concession.
• If interest is not serviced during college, the accumulated interest is capitalized (added to the principal balance) on the date repayment begins, significantly inflating your future EMI.

Under Section 80E of the Indian Income Tax Act (Old Tax Regime), an individual borrower can claim an unlimited deduction for the entire interest paid on an education loan.

• There is no upper rupee ceiling (unlike Section 24b's ₹2 Lakh cap).
• The deduction is available for up to 8 consecutive assessment years, starting from the year repayment begins.