The Calculator Site - Free Online Calculators

Education Loan Calculator

Calculate your education loan EMI with moratorium period, course-specific rates, and government subsidies for informed financial planning. Affording good education in recent times has been quite a task for parents as its cost has risen at a rapid pace.

Loan Details

Course Type

Typical rate: 8.5% - 12%

Loan Security

Loan Amount

₹

₹1,00,000₹1,00,00,000

Interest Rate (% per annum)

6%16%

Course Duration

Years

1 Years8 Years

Moratorium Period (Grace Period)

Years

Period after course completion before EMI starts

0 Years3 Years

Repayment Tenure

Years

5 Years20 Years

Government Subsidy (if applicable)

Subsidy amount: ₹0

0%10%

Loan Breakdown

Monthly EMI (After Moratorium)

₹12,940

Loan Amount

₹10,00,000

Total Interest

₹6,47,771

Total Amount Payable

₹16,47,771

Education Loan Timeline

Course Duration4 years

Moratorium Period1 years

Repayment Period10 years

Total Timeline15 years

Cost Breakdown

Original Loan Amount₹10,00,000

Net Loan Amount₹10,00,000

Moratorium Interest+₹95,000

EMI Interest+₹5,52,771

Total Cost₹16,47,771

Payment Structure

Principal58.3%

₹10,00,000

Total Interest41.7%

₹6,47,771

120

Total EMI Payments

64.8%

Interest vs Principal

Education Loan Tips

Apply early to secure better interest rates
Consider collateral for lower interest rates
Utilize moratorium period wisely
Check for government subsidies and scholarships
Start repaying during course if possible

Course-wise Interest Rates

Medical8.0% - 11.5%

Engineering8.5% - 12.0%

MBA9.0% - 13.0%

Study Abroad10.0% - 15.0%

Tax Benefits

Interest paid is tax deductible under Section 80E
No upper limit on deduction amount
Benefit available for 8 years or until loan is repaid

Education Loan EMI Calculator

Affording good education in recent times has been quite a task for parents as its cost has risen at a rapid pace. To finance this cost, an education loan is one of the best options a parent can opt for.

Such loans can be taken for a student's education within the country or even overseas. The loan's EMI is required to be repaid with interest after a moratorium period. By entering the loan amount, rate of interest, and loan tenure in the Education Loan EMI Calculator, you can calculate the sum of the EMI amount which you need to repay.

Education loans often come with special features like moratorium periods, course-specific interest rates, and government subsidies, making them an attractive option for financing higher education.

Key Features of Education Loans

Moratorium Period

Education loans typically offer a moratorium period during which only interest is paid, giving students time to complete their education.

Course-Specific Rates

Interest rates vary based on the course type, with professional courses often getting better rates than general courses.

Government Subsidies

Various government schemes provide interest subsidies for education loans, especially for economically weaker sections.

Flexible Repayment

Repayment typically starts after course completion and job placement, with flexible tenure options.

Education Loan Planning Tips

Start planning early and compare loan offers from multiple banks and NBFCs.

Consider government schemes and subsidies that may be available for your course.

Factor in the moratorium period while calculating total loan cost.

Plan for additional expenses like living costs, books, and other educational materials.

Government Education Loan Schemes

The Indian government offers several education loan schemes to make higher education accessible:

Central Scheme for Interest Subsidy (CSIS)

Provides interest subsidy for economically weaker sections during the moratorium period.

Padho Pardesh Scheme

Interest subsidy scheme for students pursuing higher education abroad.

Vidyalakshmi Portal

Single window platform for students to access various education loan schemes.

Skill Loan Scheme

Special loan scheme for skill development and vocational training programs.

Education Loan EMI Formula - Detailed Calculation

Education loan EMI calculation includes moratorium period and course-specific interest rates:

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Education Loan Variables:

• P = Principal Amount (₹)

• R = Monthly Interest Rate

• N = Repayment Tenure in Months

• Moratorium = Course Duration + 6 months

Course-Specific Rates:

• Engineering: 8.5-12% p.a.

• Medical: 8-11.5% p.a.

• MBA: 9-13% p.a.

• Study Abroad: 10-15% p.a.

Education Loan Calculation Steps:

Step 1: Determine loan amount and course type

Step 2: Calculate moratorium period (course duration + 6 months)

Step 3: Convert annual rate to monthly (Rate ÷ 12 ÷ 100)

Step 4: Calculate repayment tenure (Total tenure - Moratorium)

Step 5: Apply EMI formula to get monthly payment

Example: ₹10 Lakh Engineering Loan with 4-Year Course:

Given:

• Loan Amount = ₹10,00,000

• Course = Engineering (4 years)

• Interest Rate = 9.5% p.a.

• Moratorium = 4 years + 6 months

• Repayment = 10 years

Calculations:

• R = 9.5% ÷ 12 ÷ 100 = 0.00792

• N = 10 × 12 = 120 months

• EMI = ₹12,950

• Moratorium Interest = ₹4,27,500

• Total Interest = ₹15,54,000

Result: The monthly EMI for the education loan is ₹12,950

Education Loan Specific Considerations:

Moratorium Period: No EMI during course + 6 months

Interest Capitalization: Interest added to principal

Government Subsidies: Available for eligible students

Course-Specific Rates: Professional courses get better rates

Collateral: Required for loans above ₹4 lakh

Co-borrower: Parent/guardian as co-applicant

Moratorium Period Benefits

The moratorium period in education loans provides several benefits:

Focus on Studies

Students can focus on their education without worrying about EMI payments during the course.

Job Placement Time

Provides time for students to find employment after course completion before starting EMI payments.

Interest Capitalization

Interest accrued during moratorium is added to the principal, but EMI starts only after this period.

Education Loan FAQs

Get answers to commonly asked questions about education loans, EMI calculations, and student financing.

An EMI (Equated Monthly Installment) calculator is a financial tool that helps you calculate the monthly payment amount for a loan. It considers the principal amount, interest rate, and loan tenure to determine your monthly payment obligation.

Our calculators provide highly accurate estimates based on standard financial formulas. However, actual loan terms may vary based on your credit score, lender policies, and market conditions. Always consult with financial institutions for final terms.

These calculators are designed to help you make informed financial decisions. Use them to compare different loan options, plan your investments, and understand the long-term impact of your financial choices.

Your loan EMI is primarily affected by three factors: the principal amount (loan amount), the interest rate, and the loan tenure. A higher principal or interest rate increases EMI, while a longer tenure reduces it but increases total interest paid.

Shorter tenures mean higher EMIs but lower total interest paid. Longer tenures reduce EMI burden but increase total cost. Choose based on your monthly budget and long-term financial goals.

Fixed rates remain constant throughout the loan tenure, providing payment predictability. Floating rates change with market conditions and can result in varying EMIs over time.

Prepayment reduces your outstanding principal, which can significantly reduce total interest paid and loan tenure. Most lenders allow prepayment with minimal or no charges after a certain period.

You can use the EMI calculator for various types of loans including home loans, car loans, personal loans, education loans, business loans, and credit card loans. The calculator works for any loan that follows the standard EMI structure with principal, interest rate, and tenure.

The debt-to-income (DTI) ratio is crucial for loan approval. It measures your monthly debt payments as a percentage of your monthly income. Most lenders prefer a DTI ratio below 40-50%. A higher DTI ratio indicates higher financial risk and may result in loan rejection, higher interest rates, or reduced loan amounts.

An EMI (Equated Monthly Installment) consists of two main components: Principal amount (part of the original loan amount being repaid) and Interest amount (cost of borrowing). The ratio between these components changes over time - initially, more goes toward interest, and as the loan progresses, more goes toward principal repayment.

Missing EMI payments can have serious consequences including late payment charges, penalty interest rates, negative impact on your credit score, loan account becoming NPA (Non-Performing Asset), potential legal action, and in severe cases, asset seizure (for secured loans). It's important to communicate with your lender if you anticipate payment difficulties.