Question 1

How is the education loan EMI calculated?

Accepted Answer

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan outstanding when repayment starts, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly instalments.

Question 2

What is the moratorium period on a study-abroad loan?

Accepted Answer

It's the time when you don't pay EMIs, usually the length of your course plus a grace period of 6 to 12 months after it ends. Interest is still charged during this time; the exact rules depend on your lender.

Question 3

Should I pay interest during the moratorium?

Accepted Answer

If you can, it usually saves money. Unpaid interest is added to your loan, so your EMI and total interest go up. Use the dropdown above to compare both options.

Question 4

Is simple or compound interest charged during the moratorium?

Accepted Answer

It depends on the lender. Many Indian public-sector banks charge simple interest during the moratorium, while some lenders compound it. Check your sanction letter, then pick the matching option above.

Question 5

Does this include processing fees or tax benefits?

Accepted Answer

No. The calculator covers principal and interest only. Processing fees, insurance and any tax deduction on education-loan interest are not included.

Education Loan EMI Calculator for Study Abroad (with Moratorium)

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