The education loan reality check

Your bank told you the interest rate.
Nobody told you the bill.

Students sign loans of ₹5 lakh to ₹1.5 crore without ever seeing what they'll actually repay. Loan Sachs makes the true cost impossible to misunderstand — in under 60 seconds.

See what you'll really pay → Compare lenders

Free forever No login No lender ads Made for ₹, lakh & crore

A typical abroad-masters loan

₹40 lakh · 11% · 2-yr course + 6-mo grace · 15-yr tenure · nothing paid while studying

You borrow

—

→

You repay

—

What you borrowed — is interest

EMI —/month · —

Open this in the calculator →

The quiet mathematics of the moratorium

How ₹40 lakh becomes … — without anyone lying to you

Every number below is computed live by the same engine that powers the calculator. Nothing here is a scare figure — it's just the arithmetic nobody walks you through.

Step 1 · While you study

…

of interest accrues during the 30-month moratorium. Unpaid, it's added to your loan — you start EMIs owing …, not ₹40,00,000.

Step 2 · Then, for 15 years

…

every month — an EMI charged on the ballooned principal. Over 180 months, that's … out of your salary.

Step 3 · The fix

…

saved by paying just the interest (…/month) while you study. Every shock on this site comes with its fix.

Why this isn't another EMI calculator

Built for the parts every other calculator skips

Moratorium interest, modelled properly live

Pay full, partial or no interest while studying — simple or monthly-compounding accrual. The one input that changes lakhs, ignored almost everywhere.

Tranche-wise disbursement live

Loans release semester by semester, and interest accrues only on what's disbursed. Loan Sachs models it the way your bank actually charges it.

Reality you can forward live

Every scenario is a URL. Send it to your parents on WhatsApp — they see exactly your numbers, formatted in lakh and crore, on a 6-inch screen.

Prepayment simulator phase 2

Since Jan 2026, prepaying floating-rate loans is penalty-free by RBI rule. See how a signing bonus or ₹5,000/month extra collapses your tenure.

Salary reality check phase 2

Can the salary you'll actually earn carry this EMI? Green under 20% of income, red past 35% — with a breakeven age for your degree.

Subsidies & Section 80E phase 2

PM Vidyalaxmi, CSIS interest subvention, and the tax deduction most repayers never claim — checked against your numbers.

Know who you're borrowing from

PSU bank, private bank, NBFC or international lender?

The rate is only the first line of the deal. Margin money, collateral, processing fees, sanction speed and — above all — how moratorium interest is treated, decide what you actually pay.

Explore the lender landscape →

PSU banksSBI · BoB · Union — collateral beyond ~₹7.5L, slower, simple interest

~8.1–10.5%

Private banksICICI · Axis · IDFC First — faster, partly collateral-free

~10–12.5%

NBFCsCredila · Avanse · Auxilo · InCred — fast, zero margin, compounding

~11–14.5%

Indicative ranges as of mid-2026 — always verify with the lender.

Questions parents ask

Understand the words before you sign them

What is a moratorium, really?

The moratorium (your course period + 6–12 months of grace) is when you don't have to pay EMIs. But interest runs from day one — and if you don't pay it, it's added to your loan. You start repayment owing more than you borrowed.

Why does my principal grow before I've paid a single EMI?

Unpaid moratorium interest "capitalizes": it's added to the principal. On a ₹40 lakh loan at 11% with a 30-month moratorium, that's ₹11 lakh added before your first EMI.

Simple vs compound interest during moratorium — what's the difference?

Most PSU banks charge simple interest during the moratorium; many NBFCs compound it monthly, so unpaid interest itself earns interest. The difference can be lakhs — check your sanction letter.

Which lender should I pick?

There's no universal answer — PSU banks are usually cheapest but slower and collateral-hungry; NBFCs are fast and collateral-free but pricier, often with compounding moratorium interest and bundled insurance. Our lender landscape lays out the trade-offs; the calculator tells you what each rate really costs.

Is Loan Sachs giving me financial advice?

No. Loan Sachs is an educational tool. All rates and scheme rules shown are indicative as of 2026 — verify everything with your lender and official government portals before signing.

Can I share or save my calculation?

Yes — every scenario lives in the URL. Copy the link or share it straight to WhatsApp; whoever opens it sees exactly your numbers. No login needed.

No "calculate" button — everything updates live

The True Cost Calculator

Move the sliders. The moratorium, the accrual method, the tranches — it's all modelled the way your sanction letter works. Every scenario is a shareable link.

Loan amount₹1L – ₹2Cr

Interest rate

Ranges are indicative — see the lender landscape and always verify with the lender.

Course duration

Grace period after course

Repayment tenure (after moratorium)

During the moratorium, what will you pay?

How does unpaid interest accrue?

Simple: most PSU banks. Monthly compounding: many NBFCs. Check your sanction letter — this changes lakhs.

Advanced — disbursement, fees, margin

How is the loan disbursed?

Loans usually release semester by semester — interest accrues only on what's been disbursed. Almost no calculator models this; it's how your loan actually works.

Processing fee

Margin money

The reality check

Your loan will actually cost you

Monthly EMI

Principal at first EMI

Total interest

Where your money goes

BorrowedInterest + fees

What you owe, over time

The moratorium decision — same loan, three very different bills

Repayment schedule, year by year

Borrowing from a specific bank or NBFC? Check its terms in the lender landscape — then come back and model them here.

The lender landscape · no affiliate links, ever

Who actually lends for education — and on what terms

The interest rate is the first line of the deal, not the whole deal. Margin money, collateral, processing fees, sanction speed and — above all — how moratorium interest is treated decide what you'll really pay.

Every figure below is indicative as of mid-2026 and changes often. Your rate depends on your university, course, co-applicant and collateral. Treat this page as a map, not a quote — verify on the lender's official site before deciding. Loan Sachs earns nothing from any lender.

At a glance

The whole table, side by side

Lender	Type	Indicative rate	Margin money	Collateral	Processing fee	Sanction speed	Moratorium interest

Indicative, mid-2026. “Simple” and “compounding” describe how interest behaves during the moratorium — the single biggest hidden difference between lenders. See what it does to your number →

How to read these numbers

Four things the rate column doesn't tell you

1Moratorium treatment beats the rate

A 9% PSU loan with simple moratorium interest can cost less than it looks; an 11.5% NBFC loan with monthly compounding and nothing paid during study can quietly add lakhs before your first EMI. Some NBFCs require partial or full interest payment during study — which, ironically, protects you. Model both in the calculator.

2Margin money is your money

A 10–15% margin means the bank funds only 85–90% of your cost — you bring the rest. “Zero margin” NBFC loans feel easier but you're borrowing that difference at a higher rate. Neither is free; they're just different pockets.

3Watch the bundles

Processing fees are visible; forced insurance bundles often aren't. Some NBFC sanctions include credit-life insurance of 1–4% of the loan, added upfront and financed at your loan's rate. Always ask for the all-in cost with insurance, then compare offers on total repayment — not the headline rate.

4Since Jan 2026, switching is free

RBI has banned prepayment and foreclosure charges on floating-rate loans to individuals. Take the fast NBFC loan if you must, then refinance to a cheaper PSU/private bank once you have a salary — penalty-free. The expensive loan no longer has to be a life sentence.

Your bank told you the interest rate.
Nobody told you the bill.

How ₹40 lakh becomes … — without anyone lying to you

Built for the parts every other calculator skips

Moratorium interest, modelled properly live

Tranche-wise disbursement live

Reality you can forward live

Prepayment simulator phase 2

Salary reality check phase 2

Subsidies & Section 80E phase 2

PSU bank, private bank, NBFC or international lender?

Understand the words before you sign them

60 seconds. One honest number.

The True Cost Calculator

Your loan will actually cost you

Where your money goes

What you owe, over time

The moratorium decision — same loan, three very different bills

Repayment schedule, year by year

Who actually lends for education — and on what terms

The whole table, side by side

Four things the rate column doesn't tell you

1Moratorium treatment beats the rate

2Margin money is your money

3Watch the bundles

4Since Jan 2026, switching is free

A rate is a promise. The calculator is the receipt.