Question 1

What is a moratorium period in education loans?

Accepted Answer

The moratorium period is the grace period after completing your course (typically 6–12 months) before EMI repayment begins. During this period, interest accrues and is added to the principal (capitalized).

Question 2

What is simple vs compound interest during the study period?

Accepted Answer

Simple interest is calculated only on the original principal: Interest = P × r × t. Compound interest is calculated on principal plus accumulated interest: Interest = P × (1 + r)^t − P. Most Indian education loans use simple interest during the study period.

Question 3

What does 'capitalized principal' mean?

Accepted Answer

Capitalized principal is the original loan amount plus all interest accrued during the study and moratorium periods. Your EMI is calculated on this higher amount, not the original loan.

Question 4

Is this calculator free to use?

Accepted Answer

Yes, this Education Loan EMI Calculator is completely free with no sign-up required. Use it unlimited times on any device.