MoneyLens / Education loans
Your education loan, explained.
Education loan · Narmada Global Scholar · Narmada Bank Ltd · ••••5518
Illustrative
Education loan · abroad · Bank
Sanction10 Jul
Interest to pay while studying
₹5,63,836
paid as it falls due
Paid out
₹30,00,000
of ₹30,00,000 sanctioned
EMIs start
30 Nov 2027
in 13 months
EMI
₹32,238
for 180 months
100% of the loan paid out
An education loan of ₹30,00,000 from Narmada Bank Ltd at 10.50% a year (floating), for study abroad. Interest is paid as it falls due while studying; EMIs start on 30 Nov 2027 and run 180 months. The interest is tax-deductible for 8 years under the old regime.
Myra's most important observations
Prefilled from your loan · edit freely
Interest while studying: let it build, or pay it?
Prefilled from Sanction p.1, Loan · Sanction p.1, Interest · Sanction p.1, Repayment
₹30,00,000
10.50%
13 months
180 months
0.50%
Left to build up
₹36,49,147₹3,41,753 added · EMI ₹36,940
Paid while studying · yours
₹31,28,347₹25,000 a month now · EMI ₹32,238
Paying while studying costs ₹25,000 a month now; on these figures it means ₹5,20,800 less interest overall and an EMI ₹4,702 lower. Many students part-pay: any amount paid stops that much from building up.
Assumptions & limits. ₹30,00,000 paid out today, EMIs starting in 13 months, repaid over 180 months at 10.50% a year. Left to build up: simple interest, added to the loan when EMIs start. Paid while studying: simple interest each month at 10% (the 0.50% concession). In practice the loan is paid out in parts, each earning interest from its own date, so the real figures are lower than this all-at-once picture.