Education Loan Calculator (with moratorium interest)
What an education loan really costs once moratorium interest capitalises, and what section 80E gives back.
Your numbers
Nothing you type here leaves your device as you work. Saving is the only thing that sends it anywhere, and only when you ask.
₹20 lakh
Course length plus the grace period after it.
For the section 80E benefit. Old regime only.
₹ MoneyLingo · moneylingo.in
Education Loan Calculator (with moratorium interest)
Worked out on 13/8/2026
| Loan amount | 2000000 |
|---|---|
| Interest rate | 10 |
| Moratorium | 48 |
| Repayment tenure | 120 |
| Your expected marginal tax rate | 20 |
My scenarios (0/10)
Snapshots of your inputs, so you can flip between them — “20 years at 9%” against “15 years at 9.5%”. Stored in this browser only, no account needed.
On a ₹20 lakh loan
- EMI
- ₹39,364
- You owe when repayment starts
- ₹29.8 lakh
- Interest added during the moratorium
- ₹9,78,708
- Total interest
- ₹27.2 lakh
- Saved by servicing interest
- ₹7,52,044
- Section 80E tax benefit
- ₹3,30,654
Over 8 years, old regime
Worth knowing
- Interest is not being serviced during the 48-month moratorium, so ₹9,78,708 of interest is added to the loan. You will start repayment owing ₹29,78,708 on a ₹20,00,000 loan — and then pay interest on that interest.
- Servicing the interest during the moratorium would save about ₹7,52,044 over the life of the loan. Even a part-time job that covers part of it is worth doing.
What this means
- An Indian education loan is ordinary debt. Unlike student finance in the UK or Australia, repayment does not depend on what you earn, there is no threshold below which you pay nothing, and there is no write-off. If the job does not materialise, the loan is still owed.
- Loans above a threshold usually need collateral — commonly a parent's property — so a default has consequences well beyond your own credit record.
- Section 80E allows a deduction for ALL the interest you pay, with no upper limit, for up to 8 years from the year you FIRST pay interest — paying interest during the moratorium starts that clock early. It is available under the old regime only. On these figures it is worth about ₹3,30,654 in tax.
- Interest subsidy schemes exist for some students, and the government's Vidya Lakshmi portal lists participating banks in one place. Check what you qualify for before signing.
Questions people actually ask
- Is an Indian education loan like a UK student loan?
- No, and the difference matters enormously. An Indian education loan is ordinary debt. Repayment does not depend on what you earn, there is no threshold below which you pay nothing, and there is no write-off. It is usually secured on a family asset.
- What happens to interest during the moratorium?
- It still accrues. If it is not paid, it is added to the loan and you then pay interest on that interest — students routinely graduate owing significantly more than they borrowed. This page shows what paying it as you go would save; whether that is affordable during the course is a question only you can answer.
Where these numbers come from
Every rate this tool uses, its source, and the date a human last checked it against that source.
- Union Budget 2026-27; slab structure unchanged from FY 2025-26 · checked 2026-04-05
- Income-tax Act — standard deduction for salaried taxpayers, new regime · checked 2026-04-05
Salaried taxpayers and pensioners only. Not available against business or freelance income.
- Rebate under s.87A, new regime · checked 2026-04-05
Applies to total income AFTER the standard deduction, which is why a salary of ₹12.75 lakh can still pay nil tax.
- Rebate under s.87A, new regime · checked 2026-04-05
- Surcharge rates, new regime. The 37% band does not apply under the new regime. · checked 2026-04-05
- Deduction against family pension, new regime · checked 2026-04-05
- Old regime slabs, unchanged since FY 2014-15 · checked 2026-04-05
- Standard deduction for salaried taxpayers, old regime · checked 2026-04-05
- Rebate under s.87A, old regime · checked 2026-04-05
- Rebate under s.87A, old regime · checked 2026-04-05
- Surcharge rates, old regime · checked 2026-04-05
- Basic exemption limit, resident senior citizen, old regime · checked 2026-04-05
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