Education Loan EMI Calculator

₹8 lakh

Usually your course length plus 1 year, as in the IBA model loan scheme.

₹13,744/mo

EMI after the course

Interest while you study

Repayment period
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₹10,40,000 at 10% over 120 months

₹2,40,000 of interest builds up over 36 months and is added to the loan before EMIs start.

Interest is 51% of the ₹16,49,241 you pay back in all.

Not sure how much to borrow for your course? A counsellor can compare fees and the total cost before you apply.

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What you pay back

₹16,49,241 in all

  • Amount borrowed₹8,00,000
  • Interest during the course₹2,40,000
  • Interest in your EMIs₹6,09,241

Balance left after each year of EMIs

Year-by-year schedule
Education loan repayment schedule by year
YearPrincipal paidInterest paidBalance left
1₹63,796₹1,01,129₹9,76,204
2₹70,476₹94,448₹9,05,729
3₹77,855₹87,069₹8,27,873
4₹86,008₹78,916₹7,41,865
5₹95,014₹69,910₹6,46,851
6₹1,04,963₹59,961₹5,41,888
7₹1,15,954₹48,970₹4,25,934
8₹1,28,096₹36,828₹2,97,837
9₹1,41,510₹23,414₹1,56,328
10₹1,56,328₹8,597₹0

The short answer

Your education loan EMI is P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is what you owe when repayment starts, r the monthly rate and n the months. Interest runs while you study too: pay it as it falls due and the EMI stays on what you borrowed; leave it and it is added to the loan first.

How to use it

  1. 1

    Enter the amount you plan to borrow, the interest rate the bank quotes and how many years you want to repay over.

  2. 2

    Enter the course length plus the grace period before repayment starts, in months.

  3. 3

    Choose whether you will pay the interest during the course, then read your EMI and the total cost.

How the EMI is worked out

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

P is what you owe when repayment starts, r is the yearly rate ÷ 12 ÷ 100 and n is the number of monthly instalments. Under the IBA Model Educational Loan Scheme that most banks follow, repayment starts after the course period plus one year and can run for up to 15 years. Simple interest is charged through those study years and added to the loan when the EMI is fixed, unless you pay it as it falls due. Some banks cut the rate by 1% if you do.

The calculator assumes the whole loan is paid out on day one. Banks usually release it fee by fee, so your interest during the course will be a little lower than shown. If your family income is up to ₹8 lakh and your institution is on the PM-Vidyalaxmi list, a 3% interest subvention during the moratorium on loans up to ₹10 lakh can lower it further.

Questions students ask

How is education loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the balance when repayment starts, r is the annual rate ÷ 12 ÷ 100, and n is the number of monthly instalments. A ₹8 lakh balance at 10% over 10 years is about ₹10,572 a month.

Does interest run during the moratorium period?

Yes. Interest is charged from the day the loan is disbursed, including the course years and the grace period. If you do not pay it as it falls due, it is added to the loan before EMIs start, which raises the EMI and the total you repay.

Is it worth paying the interest while I study?

If you or your family can manage it, yes: the EMI then starts on the amount you borrowed, not a bigger one. Use the two options in the calculator to see the difference for your own loan.

How long is the moratorium on an education loan?

Under the IBA Model Educational Loan Scheme that most banks follow, repayment starts after the course period plus one year, and EMIs can run for up to 15 years after that. Simple interest is charged during the moratorium and added to the loan when the EMI is fixed. Some banks give a 1% interest concession if you pay that interest as you go.

Is there a government interest subsidy on education loans?

Yes, two. Under PM-Vidyalaxmi (approved November 2024), students at eligible institutions with family income up to ₹8 lakh get a 3% interest subvention during the moratorium on loans up to ₹10 lakh, for up to one lakh students a year. The older CSIS scheme covers the full moratorium interest for families earning up to ₹4.5 lakh in technical and professional courses.

Should I choose a longer repayment period?

A longer period lowers the EMI but raises the total interest. Pick the shortest period whose EMI fits comfortably inside your expected starting salary.

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