Calculate student loan EMI with moratorium period
Education Loan Calculator is a comprehensive financial calculator designed to help you calculate student loan emi with moratorium period. Planning finances requires absolute precision; this calculator provides instant accurate projections for EMIs, compounding, loans, and investment portfolio returns.
The calculator adds the interest that accrues during the moratorium (course) period to the loan balance, then computes EMI on that larger balance using EMI = P × r × (1+r)^n / ((1+r)^n − 1). For ₹20,00,000 at 10.5% with a 1-year moratorium and 10 years of repayment, the EMI is about ₹29,961.
A moratorium is the period, usually the course duration plus a grace period set by the lender, during which you are not required to pay EMIs. Interest still builds up on the loan during this time. Set the moratorium slider to your course length, from 0 to 5 years, and the tenure slider to your planned repayment period.
Paying it keeps your balance from growing, which lowers later EMIs. On ₹20,00,000 at 10.5% over 10 years of repayment, a 1-year moratorium with interest added to the loan gives an EMI of about ₹29,961, versus about ₹26,987 if no interest builds up. Compare the total cost yourself, since paying early also strains your budget while studying.
Yes. This calculator adds each month of interest to the balance during the moratorium, so it grows on a compounding basis. Some lenders instead charge simple interest during the course period or let you pay it monthly. Check your sanction letter for how your lender treats it and adjust your expectations accordingly.
In India, Section 80E has generally allowed a deduction for interest paid on a loan for higher education of the borrower, spouse or children, for a limited number of years and only under the old tax regime. Rules change, so check the current Income Tax Act or a tax professional. This calculator does not compute tax savings.
An education loan is meant for tuition and related costs, and it typically offers a moratorium so you start paying after the course. Personal loans usually start EMIs immediately and are unsecured. Rates, collateral needs, and tax treatment differ by lender and loan type, so compare the total repayment for both in the calculators.
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A reducing interest rate means interest is charged only on the remaining outstanding principal balance at the end of each period, rather than the initial loan amount.