Calculate your Axis Bank education loan EMI, including interest that accrues and capitalises during the moratorium period (course duration plus grace period).
Axis Bank education loan interest rates vary by the course, institute, collateral, and co-applicant profile. Enter your sanctioned or applicable rate — check axisbank.com or your branch for current rates.
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This calculator estimates the monthly EMI you will pay after your education loan moratorium ends, the total interest that accrues during the moratorium period (course duration plus grace period), and the total repayment amount over the full loan term. Education loans in India have a unique structure: during the course duration and a grace period after completion, no EMI is required — but interest continues to accrue on the outstanding principal and is typically capitalised (added to the principal balance). This calculator accounts for moratorium period interest capitalisation to give you the actual EMI and total cost of borrowing.
During the moratorium, interest accrues monthly on the outstanding loan amount but no repayments are due. This interest is capitalised — added to the principal — at the end of the moratorium. The EMI is then calculated on the higher capitalised balance over the repayment term.
Formula: Capitalised Balance = Loan Amount × (1 + Monthly Rate)Moratorium Months. EMI = [Cap. Balance × R × (1 + R)N] ÷ [(1 + R)N − 1].
Example: ₹10,00,000 loan at 11% per annum (example rate — enter your Axis Bank sanctioned rate), 18-month moratorium, 10-year repayment: Moratorium interest ≈ ₹1,65,000. Capitalised principal ≈ ₹11,65,000. Monthly EMI ≈ ₹16,047.88. Total repaid ≈ ₹19,25,745. (Note: some banks allow simple interest during moratorium — confirm with Axis Bank whether interest is simple or compound during your moratorium.)
Axis Bank offers education loans for studies in India (Axis Bank Vidyarthi) and abroad (Axis Bank World Scholar) up to ₹75 lakh for studies abroad at premier institutions. For loans up to ₹4 lakh, no collateral is required. For loans between ₹4 lakh and ₹7.5 lakh, a third-party guarantee is required. For loans above ₹7.5 lakh, tangible collateral (immovable property, fixed deposits, NSCs) is required. The moratorium period is the course duration plus 12 months or 6 months after getting employment, whichever is earlier. Students from SC/ST communities may be eligible for government interest subsidies during the moratorium under the Central Sector Interest Subsidy (CSIS) scheme for economically weaker section (EWS) borrowers. Section 80E of the Income Tax Act allows deduction of the entire education loan interest amount for up to 8 years from the year of starting repayment — this deduction is available to the person who took the loan (typically the student or parent co-borrower) and has no upper limit.
Axis Bank offers education loans up to ₹75 lakh for studies abroad at top-tier institutions, and up to ₹20-40 lakh for studies in India depending on the institution and course. The exact sanctioned amount depends on the course fee, institution ranking, co-applicant income, and available collateral. For premier institutions (IITs, IIMs, NIT, AIIMS, top foreign universities), higher loan amounts are typically sanctioned. Loans above ₹7.5 lakh require tangible collateral.
Yes — Section 80E of the Income Tax Act 1961 allows a deduction for the entire interest paid on an education loan in a financial year, with no upper limit, for up to 8 consecutive financial years from the year repayment begins. The deduction is available to the individual who took the loan — the student or the parent/spouse who is the co-borrower. Importantly, only the interest component is deductible under 80E, not the principal. This can result in significant tax savings, especially in the early repayment years when the interest component is higher.
The Central Sector Interest Subsidy (CSIS) scheme provides a full interest subsidy during the moratorium period for students from economically weaker sections (EWS — annual family income up to ₹4.5 lakh) who have taken education loans from scheduled commercial banks (including Axis Bank) for professional/technical courses. The subsidy covers 100% of the interest during the course plus 12 months. Eligible students must apply through their college/institution, and the bank must be linked to the scheme. This can save tens of thousands of rupees in capitalised interest.
The moratorium period for Axis Bank education loans is the course duration plus a grace period — either 12 months after course completion or 6 months after getting a job, whichever is earlier. During this period, the student is not required to pay any EMI, though interest continues to accrue. Axis Bank may allow students to pay only the interest during the moratorium (without capitalisation) — confirming this and making interest-only payments can significantly reduce the total borrowing cost.
For loans up to ₹4 lakh, no collateral is required — only a co-applicant (usually a parent). For loans between ₹4 lakh and ₹7.5 lakh, a third-party guarantee from a creditworthy individual is required. For loans above ₹7.5 lakh, tangible collateral is mandatory — typically immovable property (residential or commercial), fixed deposits, life insurance policies (surrender value), or government securities. The collateral must be free of prior encumbrances and with clear title. Co-applicant income is also assessed.
Yes — Axis Bank allows prepayment of education loans without penalty charges for floating rate loans, as per RBI guidelines. Prepayments reduce the outstanding principal, shortening the remaining tenure (or reducing the EMI, depending on the arrangement). Making prepayments from early salary increments, bonuses, or other windfalls can significantly reduce the total interest paid on a long-tenure education loan. Fix the EMI and reduce the tenure rather than reducing EMI to clear the loan faster.
Disclaimer: This calculator is an independent tool and is not affiliated with or endorsed by Axis Bank Limited. Interest rates, moratorium periods, eligibility, and collateral requirements shown are examples only. Actual education loan terms depend on Axis Bank's current schemes, the course and institution, your credit profile, and applicable government subsidy schemes. Always verify current rates and terms directly with Axis Bank at axisbank.com. Tax deduction information is based on current provisions of the Income Tax Act 1961 and may change — consult a tax adviser.