How is the EMI for an education loan calculated?

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the effective principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the total number of months. Vidya also adds the moratorium-period interest to your principal before computing EMIs because most Indian banks compound it monthly during your studies.

What is the moratorium period and why does it matter?

The moratorium is the gap between when the loan is disbursed and when EMIs begin — typically the course duration plus 6–12 months. Interest accrues during this period. With most lenders it compounds monthly and is added to the principal, silently inflating the effective loan you eventually repay.

Should I pay simple interest during the moratorium?

If you can afford it, yes. Servicing the simple interest during the course period prevents it from compounding into the principal. On a ₹15L loan at 10.5% over 1 year, this can save ~₹40k–₹70k of compounded interest over the loan's life.

How much does a longer tenure really cost me?

Lower EMI, but a much larger total interest bill. Stretching a ₹15L loan from 5 to 10 years roughly doubles total interest. The 'Tenure scenarios' table on Vidya shows the precise difference for your numbers.

Are public-sector banks always cheaper than NBFCs?

For comparable profiles, yes — PSU banks like SBI and Bank of Baroda typically quote 2–4% lower than NBFCs like HDFC Credila or Avanse. NBFCs are faster and more flexible on collateral and eligibility, which is why they remain popular for overseas study loans.

What hidden charges should I confirm in writing before signing?

Processing fee (often non-refundable), credit-life insurance premium, stamp duty and documentation, late-payment penal interest, prepayment / foreclosure charges (usually nil for floating-rate education loans, but verify), and whether moratorium interest is simple or compounded.

Can prepayment really save money?

Significantly. Education loans typically have nil foreclosure charges. Even ad-hoc prepayments equal to one EMI per year can shave 1.5–3 years off your tenure and lakhs in interest. The earlier in the tenure you prepay, the larger the impact.

Is my data shared when I click 'Apply'?

Only the details you explicitly enter in the application form (name, email, phone, loan summary) are sent to the lender you select. Your slider values, calculations and saved state never leave your browser unless you submit the form.

Built for Indian students & parents

Education loans,
finally explained in numbers.

See your true EMI, total interest, the silent cost of moratorium, and every hidden fee in a single, honest breakdown. No login. No spam. No surprises at disbursal.

Compare 6 tenures

Instant side-by-side EMI vs total interest.

Moratorium math

See how interest accrues during studies.

Downloadable PDF

Share with parents or co-applicant in one click.

Start with your numbers

You will repay

₹23,85,566

for a loan of ₹15,00,000 · ₹8,85,566 extra in interest & fees

57% interest of principal

Monthly EMI

₹28,078

Total interest

₹8,58,566

Moratorium

₹1,65,305

Upfront fees

₹27,000

Effective principal₹16,65,305

Total months84 months

Total payment₹23,58,566

Where your money goes

₹23,85,566

all-in cost

Principal₹15,00,000
Interest (post-moratorium)₹6,93,261
Moratorium interest₹1,65,305
Fees & insurance₹27,000

Outstanding balance over time

84 months

BalanceCumulative interest

What this loan is really costing you

Auto-generated from your inputs — no AI guesswork, just math.

Moratorium silently inflates your loan

During the 1-yr moratorium, interest compounds monthly and is added to principal. You'll repay EMIs on a larger effective principal.

+₹1,65,305 added to principal

Adding 2 years lowers EMI but costs ₹2.2L more

EMI drops from ₹28,078 to ₹23,899, but total interest rises by ₹2,22,479.

Cut 2 years → save ₹2.1L

Repaying in 5 years instead of 7 raises EMI to ₹35,794 but saves ₹2,10,932 in interest.

Don't forget upfront costs

Processing fee (1%) and insurance combined: ₹27,000 — usually deducted from disbursal.

Tenure scenarios

Same loan, different repayment horizons

Tap a row to apply

Tenure	Monthly EMI	Total interest	Total payment	vs current
3y3 years	₹54,126	₹4,48,554	₹19,48,554	−₹4,10,012
5y5 years	₹35,794	₹6,47,634	₹21,47,634	−₹2,10,932
7y7 years current	₹28,078	₹8,58,566	₹23,58,566	—
10y10 years	₹22,471	₹11,96,495	₹26,96,495	+₹3,37,929
12y12 years	₹20,386	₹14,35,538	₹29,35,538	+₹5,76,972
15y15 years	₹18,408	₹18,13,488	₹33,13,488	+₹9,54,922

EMIs and interest assume the same rate of 10.50% and your current moratorium settings.

Hidden cost checklist

Things bank brochures don't make obvious.

0/6

Lender comparison

Tap "Apply this rate" to model the lender's pricing instantly.

Best published rate · 8.4%

Bank of Baroda

Public

8.4% – 11.5%

EMI @ best rate: ₹25,747
Total interest: ₹6,62,734
Processing fee: 1% (max ₹10,000)
Collateral above: ₹7.5L

Moratorium · Course period + 12 months. Simple interest.

Note · Baroda Scholar covers 35+ premier institutes worldwide.

Union Bank of India

Public

8.4% – 11%

EMI @ best rate: ₹25,747
Total interest: ₹6,62,734
Processing fee: 0.5% (max ₹10,000)
Collateral above: ₹7.5L

Moratorium · Course period + 12 months. Simple interest.

Note · Union Education Suvidha — 0.5% concession for daughters.

State Bank of India

Public

8.55% – 11.15%

EMI @ best rate: ₹25,908
Total interest: ₹6,76,302
Processing fee: 0.1% (max ₹10,000)
Collateral above: ₹7.5L

Moratorium · Course period + 12 months. Simple interest accrues.

Note · Lowest rates for premier institutes via SBI Scholar.

Canara Bank

Public

8.6% – 11.4%

EMI @ best rate: ₹25,962
Total interest: ₹6,80,839
Processing fee: 0.5% (max ₹10,000)
Collateral above: ₹7.5L

Moratorium · Course period + 12 months. Simple interest.

Note · IBA-aligned scheme. Concession of 0.5% for women under Vidya Turant.

HDFC Bank

Private

9.5% – 13.85%

EMI @ best rate: ₹26,949
Total interest: ₹7,63,726
Processing fee: 1% (max ₹10,000)
Collateral above: ₹7.5L

Moratorium · Course + 12 months. Simple interest during moratorium.

Note · Branch-led product for Indian education; for overseas / large tickets HDFC Bank refers customers to Credila.

Federal Bank

Private

9.55% – 13.4%

EMI @ best rate: ₹27,005
Total interest: ₹7,68,399
Processing fee: 0.5% (max ₹10,000)
Collateral above: ₹7.5L

Moratorium · Course + 12 months. Simple interest.

Note · Strong NRI co-applicant offering; popular in southern states.

ICICI Bank

Private

10.5% – 14.5%

EMI @ best rate: ₹28,078
Total interest: ₹8,58,566
Processing fee: 1% (max ₹11,000)
Collateral above: ₹50L

Moratorium · Course + 12 months. Simple interest.

Note · Doorstep service. Strong on overseas studies.

IDFC FIRST Bank

Private

11% – 14%

EMI @ best rate: ₹28,656
Total interest: ₹9,07,082
Processing fee: 1% (max ₹12,500)
Collateral above: ₹40L

Moratorium · Course + 12 months. Simple interest with optional servicing.

Note · Digital-first sanctions; competitive rates for top-tier institutes.

Credila Financial Services

NBFC

11.25% – 13.75%

EMI @ best rate: ₹28,948
Total interest: ₹9,31,616
Processing fee: 1.25%
Collateral above: Always

Moratorium · Course + 6 months. Compound interest during moratorium.

Note · India's largest education-loan NBFC (formerly HDFC Credila).

Avanse Financial

NBFC

11.5% – 14.75%

EMI @ best rate: ₹29,242
Total interest: ₹9,56,336
Processing fee: 1.5%
Collateral above: Always

Moratorium · Course + 12 months. Compound interest.

Note · Co-lending with PSU banks; quick turnaround.

InCred Finance

NBFC

11.5% – 14.5%

EMI @ best rate: ₹29,242
Total interest: ₹9,56,336
Processing fee: 1.25%
Collateral above: Always

Moratorium · Course + 12 months. Compound interest.

Note · Specialist for STEM masters abroad; co-signer & non-collateral options.

Auxilo Finserve

NBFC

11.75% – 15%

EMI @ best rate: ₹29,539
Total interest: ₹9,81,242
Processing fee: 1.5%
Collateral above: Always

Moratorium · Course + 12 months. Compound interest.

Note · Flexible NBFC for Tier-2 schools and skill programmes; pre-visa loans.

Axis Bank

Private

13.7% – 15.2%

EMI @ best rate: ₹31,928
Total interest: ₹11,81,965
Processing fee: 2% (max ₹15,000)
Collateral above: ₹40L

Moratorium · Course + 6 months. Optional partial interest servicing.

Note · Faster sanctions, higher rates than PSU banks.

Disclaimer: Rates and policies are indicative ranges from public sources, not guaranteed offers. Always confirm with the lender.

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Frequently asked questions

The eight questions every Indian student loan applicant should ask.

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the effective principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the total number of months. Vidya also adds the moratorium-period interest to your principal before computing EMIs because most Indian banks compound it monthly during your studies.

Education loans, finally explained in numbers.

Education loans,
finally explained in numbers.