EMI after the moratorium, interest in the course years, and the 80E tax saving
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 30 Oct 2026.Education loan EMI on ₹10 lakh at 10% is ₹16,518.84 a month over 10 years when the ₹2,50,000 of interest from a 30-month moratorium, a 24-month course plus 6 months' grace, is added to the loan. Total interest comes to ₹9,82,261.05. The calculator also shows the Section 80E deduction and the tax it saves at your slab.
Rates and rules read from the sources listed on this page (the earliest on 30 Oct 2026); they may have changed since.
Enter the Loan amount and the Interest rate on your sanction letter.
Set the Course length and the Grace after the course, which together make the moratorium.
Choose whether Interest during the moratorium is Added to the loan or Paid while studying.
Set Repay over in years and Your tax slab (old regime) for the section 80E saving.
Read the EMI and Tax saved, open Year by year for the balance, and press Share result to copy a link.
An education loan in India works in two stages. During the course and a grace period of usually 6 to 12 months after it, no EMI is due, but interest runs from the day the money is paid out. Most banks charge simple interest in this period. Then the EMIs begin on whatever balance is left.
Two ways to handle the moratorium. You can pay the interest every month while you study, which keeps the loan at the amount borrowed, or let it be added to the loan when EMIs start, which raises the EMI and the total interest. The calculator shows both, so a family can see what paying ₹8,333 a month during a ₹10 lakh course saves later.
The tax deduction. Section 129 of the Income-tax Act, 2025 (section 80E of the 1961 Act) lets an individual deduct the whole interest paid on a loan for higher education of self, spouse or children, with no upper limit. It runs for the tax year in which you start paying interest and the seven years after it: eight years in all. The loan must come from a bank, a financial institution or an approved charitable institution, and the deduction is available only in the old tax regime, as the Income Tax Department's return help page lists it. The tax saved is shown at your slab rate plus the 4% cess.
What it does not do. It assumes the whole loan is paid out on day one; real loans are released fee by fee, so real moratorium interest is lower. It counts deduction years as 12-month years from your first interest payment, while tax years run April to March. It counts only the interest part of each EMI, not moratorium interest that was added to the loan, and it ignores surcharge. Interest subsidy schemes such as the Central Sector Interest Subsidy for eligible students are not included. Read the sanction letter for your bank's exact terms. For a US federal loan, use the Student Loan Calculator.
Everything runs in your browser; nothing you type is sent anywhere. Figures checked 30 Sep 2026.
Most Indian banks charge simple interest on the amount paid out, from each disbursement until EMIs begin. On ₹10 lakh at 10% for a 30-month course and grace period, that is ₹10,00,000 × 10% × 30/12 = ₹2,50,000, or ₹8,333.33 a month if you pay it as you go.
Paying it keeps the loan at the amount borrowed. In the ₹10 lakh example the EMI is then ₹13,215.07 instead of ₹16,518.84, and the total cost is about ₹1.46 lakh lower. Letting it be added costs more but needs nothing from the family while the student studies.
Eight tax years at most: the year in which you start paying interest and the seven years after it, or until the interest is fully paid if that is sooner. The rule is section 129 of the Income-tax Act, 2025, which replaced section 80E. Interest paid after the eighth year is not deductible.
No. The whole interest paid in the year is deductible, whatever the amount, but the principal part of the EMI is not. The loan must be from a bank, a financial institution or an approved charitable institution, for higher education of yourself, your spouse or your children, and claimed by the person who repays it.
No. The Income Tax Department lists the education loan interest deduction only among the deductions for taxpayers who choose the old regime. In the default new regime it is not allowed, so the tax saving this calculator shows applies only if you file under the old regime.
No. Schemes such as the Central Sector Interest Subsidy pay the moratorium interest for eligible students from lower-income families, and some banks give a rate concession to girls. Those depend on your eligibility and bank, so enter the rate you are actually charged and treat the moratorium interest shown as the cost without a subsidy.
Rates and rules change; check the source before you rely on a figure.
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