Student loan EMI in India with course plus grace period, simple interest and 80E
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 30 Oct 2026.A student loan of ₹10,00,000 at 10% in India runs up ₹2,50,000 of simple interest over a 24-month course and 6 months' grace. Added to the loan, the EMI over 10 years is ₹16,518.84; paying ₹8,333.33 a month while studying keeps it at ₹13,215.07. Enter your own loan.
| Loan | EMI if interest is added | Monthly interest while studying | EMI if interest is paid |
|---|---|---|---|
| ₹5,00,000 | ₹8,259.42 | ₹4,166.67 | ₹6,607.54 |
| ₹10,00,000 | ₹16,518.84 | ₹8,333.33 | ₹13,215.07 |
| ₹20,00,000 | ₹33,037.68 | ₹16,666.67 | ₹26,430.15 |
| ₹40,00,000 | ₹66,075.37 | ₹33,333.33 | ₹52,860.29 |
Rates and rules read from the sources listed on this page (the earliest on 30 Oct 2026); they may have changed since.
Type the Loan amount, including fees and living costs abroad, and the bank's Interest rate.
Enter the Course length in months and a Grace after the course of 6 to 12 months.
Pick Paid while studying to see the monthly interest you would pay during the course.
Compare the EMI and Total interest with Added to the loan to see which costs less.
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.
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.
The rest of the article, and all 6 questions about Education Loan EMI Calculator, are on the Education Loan EMI Calculator page.
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.
Rates and rules change; check the source before you rely on a figure.
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