Financing your international education is one of the biggest decisions you will make. Understanding how your monthly EMI is calculated helps you plan repayment and avoid financial stress.
EMI Calculation Formula
EMI = P x r x (1 + r)^n / [(1 + r)^n - 1]
Where P = principal, r = monthly interest rate, n = loan tenure in months.
For a loan of 30 lakhs at 9.5% over 10 years, EMI is approximately 38,500 per month.
Understanding the Moratorium Period
Most education loans include a moratorium covering your course plus 6-12 months after graduation. Interest accrues during this period, increasing your effective principal.
Major Bank Rates (2025)
| Bank | Interest Rate |
|---|---|
| SBI Scholar Loan | 8.15% |
| Bank of Baroda | 9.15% |
| HDFC Credila | 9.55% |
| Axis Bank | 13.70% |
Tips to Reduce Your Loan Burden
- Apply for scholarships before taking a full loan
- Choose shorter tenure if you expect high starting salary
- Make partial prepayments during moratorium
- Compare multiple banks - rates can vary by 2-5%
Use Our Free EMI Calculator
Our Education Loan EMI Calculator at aavanto.com/tools/loan-emi-calculator calculates EMI, total interest, and compares rates across 4 major banks side by side.
Aavanto Team
Expert education consultant with years of experience helping students achieve their study abroad goals. Specialised in finance and international education guidance.
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