Find the EMI for an education loan. These loans usually allow a longer repayment time than other personal loans.
Uses the standard EMI formula.
Many education loans have a break period during your course, where you do not pay EMI. This calculator does not include that break — it only works out EMI for the time you are actually repaying.
EMI: P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
The education loan EMI calculator works out the monthly repayment on a loan taken for higher studies in India or abroad. It allows tenures of up to 15 years and loan amounts up to ₹60 lakh, which covers most engineering, medical, MBA and overseas master's programmes.
Education loans differ from other loans in one important way: repayment usually starts only after the course ends, often with a grace period to find a job. Interest may keep building during that break. This calculator does not model the moratorium. It computes the EMI from the point repayment begins, so the amount you enter should be the balance you will owe on that date, including any interest that has been added to it.
Students and parents use it to judge whether the expected starting salary can carry the EMI, and to choose a tenure.
1. Estimate the balance on the day repayment starts: the amount disbursed plus any unpaid interest that the bank will add to principal during the course and grace period.
2. Convert the annual rate to a monthly rate r = annual rate ÷ 12 ÷ 100.
3. Choose the repayment tenure n in months.
4. Compute EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1).
5. Compare the EMI with the expected monthly take-home salary after graduation.
6. Find total interest in the repayment phase as EMI × n − P.
Education loans are usually disbursed in instalments, one per semester or year, and each instalment starts accruing interest from its own disbursement date. If you pay nothing during the course, the lender adds the accrued interest to the balance before converting the loan into EMIs. So a ₹12 lakh loan can become a noticeably larger balance by the time EMIs begin. Paying just the interest each month while you study, if you or your family can, keeps the balance at the amount actually borrowed and lowers every future EMI.
The loan is repaid from income you do not yet earn, so the useful test is the ratio of EMI to expected take-home pay in the first job. A ratio above about a third leaves little room for rent and living costs in a new city. Choosing a longer tenure lowers the EMI, but at education loan rates total interest rises quickly. Many graduates take a long tenure for safety and then make part-payments once their salary rises, which gets the low EMI without paying the full long-tenure interest.
Lenders often price larger education loans differently depending on whether collateral such as property or a fixed deposit is offered, and whether a parent is a co-borrower. Loans without collateral generally carry a higher rate. Some government schemes offer interest subsidies during the moratorium for eligible students, and the eligibility rules are notified by the government and can change. The calculator takes whatever rate your lender offers, so enter the actual sanctioned rate.
Kavya will owe ₹15,00,000 on her engineering education loan when repayment starts, at 11% a year, and plans to repay it over 10 years.
Write the formula: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
Convert the annual rate to a monthly rate: r = 11% ÷ 12 ÷ 100 = 0.00916667
Number of instalments: n = 120 months
Substitute your values: EMI = 1500000 × 0.009167 × (1+0.009167)^120 ÷ ((1+0.009167)^120 − 1)
Monthly EMI: EMI
Total paid over the full tenure: 20662.5 × 120
Total interest: 2479500.2 − 1500000
Answer: Education loan EMI ₹20,663; Total interest ₹9,79,500; Total payment ₹24,79,500
Entering only the amount disbursed and forgetting the interest added during the course and grace period.
Planning the EMI against the gross CTC offered instead of the monthly take-home pay.
Assuming no interest accrues during the moratorium because no EMI is due.
Missing the chance to pay simple interest during studies, which would lower the later EMI.
Comparing an education loan from a public sector bank with one from an NBFC before admission.
Checking whether a course's typical starting salary can support the EMI.
Choosing a tenure for the repayment phase.
Planning part-payments once a graduate's salary grows.
What is a moratorium period?
It is a break period. Many education loans let you skip EMI payments during your course, and for a short time after. But interest may still build up during this break. This calculator assumes your EMI has already started.