About the Education Loan EMI Calculator
This works out the EMI you'll pay once your education loan's repayment period begins, after accounting for interest that accrues during the moratorium (course period), and the total interest and repayment over the full loan life.
How it works
During the moratorium period, simple interest accrues on the disbursed loan amount: loan × rate × moratorium years. Many Indian lenders add this accrued interest to the principal at the end of the moratorium — a common practice known as interest capitalisation. The standard reducing-balance EMI formula is then applied to this larger principal over your chosen repayment tenure.
Assumptions and behaviour
- Assumes the full loan amount is disbursed at once at the start of the moratorium, rather than in instalments across the course — a simplification, since many education loans disburse in tranches per semester/year.
- Uses simple interest during moratorium, then capitalises it into the principal, which is a common but not universal lender practice — some lenders require partial interest payment during the course instead.
- Assumes the same interest rate applies during both the moratorium and repayment phases.
Limitations
- Doesn't model staggered disbursement across multiple years of a course, which would reduce actual accrued interest compared with a lump-sum assumption.
- Doesn't include processing fees, margin money, or collateral-related costs.
- Not a loan pre-approval — actual terms vary significantly by lender, course, and institution.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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