Student Loan Interest Calculator
Student Loan Interest Calculator
Our Student Loan Interest Calculator helps Indian students and parents estimate the total interest payable on education loans. Calculate how much interest will accrue during your study period and repayment tenure, understand the impact of moratorium periods, and plan your finances effectively. Whether you’re studying in India or abroad, this tool provides accurate estimates to make informed decisions about education funding. Plan your finances better today using our India-specific Student Loan Interest Calculator.
Total Interest Payable
Interest During Moratorium
₹0
Interest During Repayment
₹0
Total Payment
₹0
Monthly EMI
₹0
Interest Calculation Formula
P = Principal loan amount
R = Annual interest rate
T = Moratorium period in months
P = Principal amount (original loan + moratorium interest if unpaid)
R = Monthly interest rate (annual rate / 12 / 100)
N = Number of monthly installments (repayment period in years × 12)
Smart Financial Tips for Indian Users
- Explore government education loan schemes like Vidya Lakshmi Portal that offer subsidized interest rates.
- Consider paying simple interest during the moratorium period to prevent it from compounding.
- Compare interest rates from multiple banks including SBI, HDFC, and Axis Bank before finalizing.
- Opt for a shorter repayment tenure if possible to reduce the total interest burden.
- Look for scholarships and grants to reduce the loan amount and subsequent interest payments.
- Maintain a good academic record to qualify for interest subsidy schemes like CSIS (Central Scheme to provide Interest Subsidy).
- Start part-time work during studies to make partial interest payments during the moratorium period.
Real-World Examples
👨🎓 Rohan, 22, Engineering Student in Chennai
Rohan took a ₹10 lakh education loan at 10% interest with a 36-month moratorium. Without paying interest during moratorium, his total interest comes to ₹5,83,333. By paying just ₹8,333 monthly interest during moratorium, he saves over ₹2.5 lakh in total interest.
👩🎓 Priya, 20, Medical Student in Delhi
Priya secured a ₹25 lakh loan at 9.5% interest for her MBBS. With a 54-month moratorium (course + 6 months) and 15-year repayment, her total interest would be ₹43.5 lakh if unpaid during moratorium. By making partial interest payments, she reduced her total interest by ₹12 lakh.
Education Loan Interest Rates in India
| Bank | Interest Rate (p.a.) | Processing Fee | Moratorium Period |
|---|---|---|---|
| SBI | 9.55% – 11.75% | 0.50% – 1.00% | Course + 12 months |
| HDFC Bank | 9.50% – 12.50% | Up to 2.00% | Course + 6 months |
| Bank of Baroda | 8.85% – 11.15% | 1.00% | Course + 12 months |
| ICICI Bank | 10.50% – 13.25% | 1.00% – 2.00% | Course + 6 months |
| Axis Bank | 10.75% – 14.00% | 1.00% – 1.50% | Course + 6 months |
Interest rates vary based on loan amount, course type, institution reputation, and collateral provided. Public sector banks generally offer lower rates and more flexible moratorium periods than private banks. Female students often get 0.5% concession on interest rates.
How to Use the Student Loan Interest Calculator
Step 1: Gather Your Loan Information
Collect details about the loan amount you need, current interest rates offered by various banks, the moratorium period (typically course duration plus 6-12 months), and the repayment tenure you’re comfortable with. Check if you can afford to pay interest during the moratorium period.
Step 2: Enter Your Inputs
Input the loan amount you’re planning to borrow, the annual interest rate (as a percentage), the moratorium period in months, and the repayment period in years. Check the box if you plan to pay interest during the moratorium period to see how it affects your total interest.
Step 3: Click “Calculate”
Once all fields are filled correctly, the Calculate button will be enabled. Click it to compute the interest during moratorium, interest during repayment, total interest payable, monthly EMI, and total payment amount. The calculator uses standard interest formulas to provide accurate results.
Step 4: Review & Download
Analyze the results displayed, including the visual chart showing the breakdown of interest during moratorium and repayment. You can copy the results for future reference or download them as a PDF report for sharing with family or financial advisors.
Step 5: Repeat & Refine
Experiment with different loan amounts, interest rates, moratorium periods, and repayment tenures to find the most suitable combination for your educational needs. Try checking and unchecking the “Pay interest during moratorium” option to see how it impacts your total interest.
Use this calculator as often as needed to fine-tune your education financing decisions and reach your academic goals faster.
Frequently Asked Questions
Our calculator uses standard interest calculation formulas and provides highly accurate results based on the inputs you provide. However, actual interest may vary slightly due to rounding methods used by different banks and any changes in interest rates over the loan period.
A moratorium period is a temporary suspension of loan repayment, typically covering the course duration plus 6-12 months after course completion. During this period, students are not required to make principal repayments, but interest may continue to accrue.
Yes, if possible. Paying simple interest during moratorium prevents it from being added to the principal, which would then compound over the repayment period. This can significantly reduce your total interest burden over the loan tenure.
Education loan interest rates in India are influenced by the loan amount, course type, institution reputation, collateral provided, applicant’s academic record, and the RBI’s monetary policy. Loans from public sector banks generally have lower rates than private banks.
Yes, the Indian government offers interest subsidy schemes like CSIS (Central Scheme to provide Interest Subsidy) for economically weaker sections. Students pursuing technical/professional courses in India can avail interest subsidy during moratorium and repayment period under certain conditions.
Common documents include admission proof, fee structure, academic records, KYC documents, income proof of parents/guardians, collateral documents (if applicable), and a filled loan application form. Additional documents may be required based on the bank’s specific requirements.
Yes, under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid on education loans for higher studies. The deduction is available for a maximum of 8 years or until the interest is fully repaid, whichever is earlier.
If you default on your education loan, it will negatively impact your CIBIL score, making it difficult to get loans in the future. Banks may initiate recovery proceedings and take legal action. If facing difficulties, contact your bank to discuss restructuring options or temporary relief measures.
Stay consistent, track your financial habits, and let data-driven tools like this guide your wealth journey in India.
Disclaimer
The results and data provided by this calculator are based on industry-standard formulas and assumptions. Actual financial outcomes may differ due to fluctuating market rates, financial institution policies, and personal decisions. Please consult a certified financial advisor before making any critical decisions. This tool is localized for Indian users only.