Basics
How EMI Works on Education Loans
Understand EMIs, how interest is calculated, and how moratorium choices affect your total repayment.
6 March 2026 · 6 min read · StudCred Editorial
An EMI (Equated Monthly Instalment) is the fixed amount you pay each month to repay your loan. It combines principal and interest so the loan is fully paid off by the end of the tenure.
The EMI formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate, and n is the number of months. Our EMI calculator does this for you instantly.
Why moratorium matters
If interest accrues during the moratorium and you don't pay it, it gets added to your principal — increasing your EMI later. Paying simple interest while studying keeps your EMIs lower.
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