Interest during the course
Interest starts from the day the loan is paid out, even during the moratorium. Most banks add simple interest for that period to the loan when repayment starts; some compound it. Paying it every month, if you or your parents can, keeps the loan from growing and starts your tax deduction earlier.
How this calculator works
- The whole loan is taken at the start. Banks often pay fees in instalments, which means less interest in the early years.
- After the moratorium, an EMI repays the balance over the tenure (as in the EMI calculator).
- The deduction counts interest actually paid: the monthly interest during the course if you pay it, and the interest in each EMI, for 8 years. Interest added to the loan becomes part of it; check how your bank's interest certificate shows it.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .