Education Loan Moratorium Calculator
During the moratorium period you do not pay EMIs, but interest still accrues every month. At the end of the moratorium that unpaid interest is added to your principal. This calculator shows exactly how much, and what your loan balance and EMI look like once repayment starts.
Uses simple interest accrual across the moratorium, the standard approximation. Servicing interest while you study prevents capitalisation and lowers every figure here.
Why the moratorium quietly raises your loan
Interest starts the day the bank disburses the first rupee. If you pay none of it while you study, it is capitalised, which means it is folded into the principal. You then pay interest on that interest for the rest of the loan. On a 20 lakh loan with a 30-month moratorium, that can add more than 5 lakh before your first EMI. The full breakdown is in the post on the education loan moratorium trap.
Servicing interest during study changes the outcome
Most lenders let you pay the monthly interest while you are still in your course. Doing so stops capitalisation completely and arrives at repayment on the original balance. Try the calculator with servicing set to full versus none to see the gap. To compare the EMI on the resulting balance, use the EMI calculator.