Education Loan Moratorium Interest Calculator
Interest that builds up while you study, your EMI after the moratorium, and how much paying interest during study saves.
Updated 30 September 2026 · 8 lenders trackedAbout this calculator
During the moratorium (course + usually 1 year) you pay no EMI, but simple interest accrues on the amount disbursed. Enter the loan, course length and how much of that interest you will pay while studying to see the principal when EMIs begin and the EMI itself.
Education Loan Moratorium Interest Calculator
Formula: Interest during moratorium = Loan × rate × months ÷ 1,200 (simple interest). Principal at EMI start = Loan + unpaid interest. EMI uses the standard reducing-balance formula on that principal.
Worked example
Example: ₹10,00,000 disbursed at the start of a 2-year course at 9.50%. The moratorium is the course plus 1 year = 36 months, during which simple interest of ₹7,917 a month accrues — ₹2,85,000 in total. Unpaid interest is added to the principal when EMIs start (10-year repayment).
| Choice during study | Interest you pay while studying | Principal when EMIs start | EMI | Total you pay |
|---|---|---|---|---|
| Pay nothing during study | ₹0 | ₹12,85,000 | ₹16,628 | ₹19,95,310 |
| Pay half the interest | ₹1,42,500 (₹3,958/month) | ₹11,42,500 | ₹14,784 | ₹19,16,541 |
| Pay all interest monthly | ₹2,85,000 (₹7,917/month) | ₹10,00,000 | ₹12,940 | ₹18,37,771 |
Assumes the whole loan is disbursed on day one; in practice fees are disbursed term by term, so accrued interest is lower. Some banks also cut the rate if you service interest during the moratorium.
By course length
| Course length | Moratorium (course + 1 yr) | Interest accrued | EMI if interest unpaid | EMI if interest paid during study |
|---|---|---|---|---|
| 1 year | 24 months | ₹1,90,000 | ₹15,398 | ₹12,940 |
| 2 years | 36 months | ₹2,85,000 | ₹16,628 | ₹12,940 |
| 3 years | 48 months | ₹3,80,000 | ₹17,857 | ₹12,940 |
| 4 years | 60 months | ₹4,75,000 | ₹19,086 | ₹12,940 |
| 5 years | 72 months | ₹5,70,000 | ₹20,315 | ₹12,940 |
₹10,00,000 at 9.50%, simple interest during the moratorium, 10-year repayment. Full amount assumed disbursed upfront.
Frequently asked questions
Is moratorium interest simple or compound?
Most banks charge simple interest during the course and moratorium, then add the accrued amount to the principal when EMIs start. Check your sanction letter — some lenders compound it.
Is it worth paying interest while studying?
Usually yes if the family can afford it: it avoids capitalisation, keeps the EMI lower, may earn a rate concession, and interest paid qualifies for Section 80E in that year.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.