Education Loan EMI Calculator

Understanding Education Loan Repayment & Moratorium Period

Unlike other retail loans, Education Loans offer a unique Moratorium Period (Holiday Period), which extends across the duration of the course plus 6 to 12 months after graduation before regular full EMI repayments start.

How Does a Moratorium Period Work?

During the moratorium period, students are not forced to pay full EMIs. However, simple interest usually accumulates on the disbursed amount. Paying simple interest during your course duration helps avoid interest compounding and reduces overall repayment burden post-graduation.

Tax Benefits Under Section 80E

In India, the entire interest paid towards higher education loans is eligible for tax deduction under Section 80E of the Income Tax Act for up to 8 consecutive assessment years with no upper financial cap limit.

Tips to Reduce Education Loan Repayment Burden

• Pay Simple Interest During College: Clearing simple interest before EMI repayment kicks in reduces total accumulated loan principal.
• Choose Collateral Options Wisely: Secured loans backed by property usually offer lower interest rates than unsecured loans.
• Explore Government Subsidy Schemes: Check eligibility for interest subsidies based on income categories.