Education Loan Repayment After Moratorium — How It Works

During moratorium (course + 6-12 months), simple interest accrues and gets added to your principal. On ₹15 lakh at 9.5% with 2-year moratorium: ₹2.98 lakh interest accrues, making effective principal ₹17.98 lakh. EMI then starts at ₹23,241.

Monthly EMI

₹23,097

Total Payable

₹27,71,696

Accrued Interest (Moratorium)

₹2,85,000

Effective Principal

₹17,85,000

Interest accrues (simple) during the course + 6-12 month grace period (moratorium). EMI starts after moratorium ends. Interest paid during repayment is deductible under Section 80E (no upper limit).

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