Education Loan Calculator
Estimate education loan repayments with built-in moratorium period. Enter your loan amount, interest rate, course duration, and repayment tenure to see your post-graduation EMIs.
Parameters
Results Summary
This calculator determines the results based on the following standard financial formula for Education Loan with Moratorium:
Variables Glossary
- P
- Principal education loan amount
- r
- Annual interest rate
- M
- Course duration (moratorium period) in years
- N
- Repayment tenure in years after course completion
- A_M
- Accrued interest during moratorium (simple interest)
- EMI
- Monthly payment after moratorium period ends
Simple interest accrues during the course moratorium. The total balance is then repaid as a standard reducing-balance EMI over the repayment tenure.
What is a moratorium period in education loans?
The moratorium period (also called the grace period) is the course duration during which you are not required to make any principal repayments. However, simple interest usually accrues during this period, which gets added to the principal balance before EMI repayments begin.
Can I pay interest during the moratorium period?
Yes, many lenders allow you to pay the simple interest during the course period. Doing so reduces your total loan burden because the interest does not capitalize into the principal. This results in lower EMIs after the moratorium ends.