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Guide

Education Loan Repayment Guide

Understand the moratorium, EMIs, prepayment and strategies to reduce your total repayment.

The moratorium period

Most loans include a repayment holiday covering your course plus 6–12 months. Interest usually accrues during this time — paying simple interest while you study prevents it from compounding into your principal.

How EMIs work

After the moratorium, you repay via EMIs over up to 15 years. A longer tenure lowers the EMI but increases total interest. Use our EMI calculator to find the right balance.

Prepayment and tax

Most education loans allow prepayment with little or no penalty — prepaying reduces your interest cost. Remember, interest paid is deductible under Section 80E for up to 8 years.

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