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FundMyCampus: Education Loan Platform

Education Loan EMI Calculator

Work out your monthly EMI, total interest and full repayment schedule. Including the interest that builds up while you study. Pick a lender to use their starting rate, or set your own.

Written by Deepak Agrawal, Founder & CEO, FundMyCampus · MBA, IIM BangaloreReviewed by Ashmita Agarwal, Director, FundMyCampusUpdated on

Loan details

₹1 Lakh₹1.5 Crore
6%16%
1 year15 years
None6 years
Interest during the moratorium

Your EMI breakdown

Monthly EMI after the moratorium

₹31,716

for 120 months

₹4 Lakh of interest builds up during the moratorium and is added to your loan, so EMIs start on ₹24 Lakh.
Loan amount
₹20,00,000
Total interest
₹18,05,941
Total amount you repay
₹38,05,941

Indicative estimate. Assumes the full amount is disbursed upfront and simple interest during the moratorium, as most Indian lenders charge. Your lender's sanction letter is final.

Training to be a pilot?

Pilot loans work differently. See what you pay each month during training and the EMI after it, for CPL and cadet programme loans.

Pilot loan EMI tables

How education loan EMI is calculated

Banks and NBFCs use the standard reducing-balance formula. Each month part of your EMI pays interest on the outstanding balance and the rest reduces the principal. So early EMIs are mostly interest and later ones mostly principal.

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

  • P, the loan amount when repayment starts (including any unpaid moratorium interest)
  • r, monthly interest rate = annual rate ÷ 12 ÷ 100 (10% p.a. → 0.00833)
  • n, number of monthly EMIs (10 years → 120)

Example: ₹10 Lakh at 10% for 10 years gives an EMI of ₹13,215, and you repay ₹15,85,809 in total.

How the moratorium period changes your EMI

You don't pay EMIs while you study, but interest still accrues. Most lenders charge simple interest during the course plus grace period. What you do with that interest makes a big difference. Example: ₹40 Lakh at 10% with a 30-month moratorium (2-year course + 6-month grace) and 10-year repayment:

Interest added to loanInterest paid monthly
Paid during the course₹0₹33,333/month
Loan when EMIs start₹50 Lakh₹40 Lakh
Monthly EMI₹66,075₹52,860
Total interest₹39,29,044₹33,43,235

Paying the moratorium interest as you go saves about ₹5.86 Lakh over the life of the loan and keeps your EMI ₹13,215 a month lower. If you can't, the calculator above shows exactly what to expect.

EMI for common education loan amounts

Monthly EMI for a 10-year repayment, with no unpaid moratorium interest.

Loan amount9% p.a.10.5% p.a.12% p.a.
₹10 Lakh₹12,668₹13,493₹14,347
₹20 Lakh₹25,335₹26,987₹28,694
₹40 Lakh₹50,670₹53,974₹57,388
₹75 Lakh₹95,007₹1,01,201₹1,07,603

5 ways to reduce your EMI and total interest

  • Pay interest during the moratorium. Even small monthly payments while you study stop interest from being added to your loan, the single biggest saving.

  • Compare lenders before you sign. A 1% lower rate on a ₹40 Lakh, 10-year loan saves about ₹2.63 Lakh in interest. PSU banks are usually cheapest. NBFCs are faster and more flexible.

  • Offer collateral if you can. Secured loans typically cost 1.5–3% less than unsecured ones, and can unlock higher amounts.

  • Prepay when you can. Floating-rate education loans can't carry prepayment penalties under RBI rules, use bonuses or salary hikes to cut the principal early.

  • Claim Section 80E. All interest you pay is deductible for up to 8 years under the old tax regime, which effectively lowers your cost of borrowing.

Education Loan EMI: FAQs

Common questions about EMIs, moratorium and repayment

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount when repayment starts, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. For example, ₹10 Lakh at 10% for 10 years gives an EMI of about ₹13,215. For education loans, P also includes any interest from the moratorium period that you didn't pay.
No. Education loans have a moratorium (repayment holiday) covering your course plus usually 6–12 months after it. EMIs start only after the moratorium ends. Interest still accrues during this period. You can pay it monthly, or let it be added to the loan, which raises your EMI later.
If you can, yes. In our example of a ₹40 Lakh loan at 10% with a 30-month moratorium, paying ₹33,333 a month in interest during the course lowers the EMI from ₹66,075 to ₹52,860 and saves about ₹5.86 Lakh in total interest. Some lenders also offer a small rate concession if interest is serviced during the course.
Most lenders allow up to 15 years of repayment after the moratorium. PSU banks such as SBI typically offer up to 15 years. NBFCs like Credila and Avanse usually offer 10–15 years depending on the loan amount. A longer tenure lowers the EMI but increases the total interest you pay.
Yes. RBI rules do not allow lenders to charge foreclosure or prepayment penalties on floating-rate loans to individuals, and most education loans are floating rate. Part-prepayments reduce your outstanding principal, which cuts the total interest. Always confirm prepayment terms in your sanction letter, especially for fixed-rate loans.
Yes, under Section 80E the entire interest paid on an education loan from a bank or approved institution is deductible, with no upper limit, for up to 8 years from the year repayment starts. The deduction is available under the old tax regime only. It cannot be claimed under the new tax regime. The principal portion is not deductible.
This calculator assumes the full loan is disbursed on day one and that simple interest accrues during the moratorium. In practice, banks disburse in instalments (semester-wise), so interest accrues only on the amount disbursed so far, which usually makes the real figure slightly lower. Processing fees, insurance and rate resets also change the final EMI. Your sanction letter is the final word.

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