MoneyLens / Education loans
Your education loan, explained.
Education loan · Tapti Vidya Loan · Tapti Bank Ltd · ••••7302
Illustrative
Education loan · India · Bank
Sanction20 Jun
Interest building up
₹83,250
added to the loan on 30 Jun 2030
Paid out
₹2,00,000
of ₹4,00,000 sanctioned
EMIs start
30 Jun 2030
in 44 months
EMI
₹3,627
for 120 months, on what's paid out so far
50% of the loan paid out₹2,00,000 still to come
An education loan of ₹4,00,000 from Tapti Bank Ltd at 9.25% a year (floating), for study in India. Interest builds up while studying (about ₹83,250) and is added to the loan; EMIs start on 30 Jun 2030 and run 120 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
₹4,00,000
9.25%
44 months
120 months
0.50%
Left to build up · yours
₹4,23,098₹1,35,734 added · EMI ₹6,859
Paid while studying
₹3,29,966₹2,917 a month now · EMI ₹5,013
Paying while studying costs ₹2,917 a month now; on these figures it means ₹93,133 less interest overall and an EMI ₹1,846 lower. Many students part-pay: any amount paid stops that much from building up.
Assumptions & limits. ₹4,00,000 paid out today, EMIs starting in 44 months, repaid over 120 months at 9.25% a year. Left to build up: simple interest, added to the loan when EMIs start. Paid while studying: simple interest each month at 8.75% (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.