Education Loan EMI Calculator India 2026 | Free Online Tool

The moratorium period is the 'EMI holiday' — a period during which you are not required to make any loan repayments. For education loans in India, the moratorium typically covers the full course duration plus 6 months after completing the course (or 12 months after getting a job, whichever comes first). During this time, interest continues to accrue on the loan balance and is usually added to the principal at the end of the moratorium (called interest capitalization).

Education loan EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal (including any capitalized interest from the moratorium), r is the monthly interest rate (annual rate ÷ 12), and n is the repayment tenure in months. The key difference from other loans is that P is larger than your original loan amount because interest accrued during the moratorium is added to the principal before EMI calculation begins.

The maximum education loan amount varies by lender. SBI's Global Ed-Vantage scheme offers up to ₹1.5 crore for studying abroad. HDFC Credila and Axis Bank offer up to ₹75 lakh. Loans above ₹7.5 lakh generally require collateral (property, fixed deposits, or a co-borrower). The government's Vidya Lakshmi Portal provides loans up to ₹7.5 lakh without collateral under the education loan guarantee scheme.

Yes, significantly. If you pay the simple interest that accrues on your loan during the moratorium period (even in small amounts), it prevents that interest from being added to your principal. This can reduce your post-moratorium EMI by 15–25% and save several lakhs in total interest over the repayment period. Many banks recommend this approach even though it's not mandatory during the moratorium.

Yes. Under Section 80E of the Income Tax Act, the entire interest paid on an education loan is deductible from taxable income — with no upper limit. This benefit is available for 8 years from the year you start repaying the loan. Only the interest component (not principal) qualifies. Both old and new tax regimes allow this deduction, making education loans one of the few deductions still available under the new regime.