Education Loan Repayment Guide
When EMIs start, tenure options, rate resets, what happens if you miss EMIs, and how to repay faster.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Repayment begins after the moratorium. Public-sector banks allow up to 15 years (some cap loans up to ₹7.5 lakh at 10 years), Credila up to 14 years. The EMI is calculated on the principal plus any unpaid moratorium interest.
EMI examples
| Loan amount | EMI @ 8.50% | EMI @ 10.00% | EMI @ 12.00% |
|---|---|---|---|
| ₹5,00,000 | ₹6,199 interest ₹2,43,914 | ₹6,608 interest ₹2,92,904 | ₹7,174 interest ₹3,60,826 |
| ₹10,00,000 | ₹12,399 interest ₹4,87,828 | ₹13,215 interest ₹5,85,809 | ₹14,347 interest ₹7,21,651 |
| ₹25,00,000 | ₹30,996 interest ₹12,19,571 | ₹33,038 interest ₹14,64,522 | ₹35,868 interest ₹18,04,128 |
Tenure 10 years, reducing-balance EMI.
Effect of tenure
| Tenure | EMI | Total interest | Total repaid |
|---|---|---|---|
| 5 years | ₹21,002 | ₹2,60,112 | ₹12,60,112 |
| 7 years | ₹16,344 | ₹3,72,894 | ₹13,72,894 |
| 10 years | ₹12,940 | ₹5,52,771 | ₹15,52,771 |
| 12 years | ₹11,664 | ₹6,79,577 | ₹16,79,577 |
| 15 years | ₹10,442 | ₹8,79,604 | ₹18,79,604 |
₹10,00,000 at 9.50%.
If you cannot pay
- Talk to the bank earlyAsk for restructuring, a longer tenure or a short holiday before EMIs are missed.
- Understand the consequencesAn account overdue for 90 days becomes an NPA; both the student’s and the co-applicant’s credit scores suffer.
- Security enforcementFor secured loans the bank can enforce the collateral after due process.
- GrievanceEscalate to the RBI Integrated Ombudsman (cms.rbi.org.in) if the bank does not respond within 30 days.
Rate resets
| Protection | What it means for you |
|---|---|
| Key Facts Statement (KFS) | Mandatory for all retail and MSME term loans since 1 Oct 2024; shows the all-inclusive Annual Percentage Rate (APR), EMI schedule and every fee |
| Charges not in KFS | Cannot be levied without your explicit consent |
| Validity | At least 3 working days for loans of 7 days or more — time to compare offers |
| Floating-rate reset (RBI, Aug 2023) | At a rate reset you can choose a higher EMI, a longer tenure (without negative amortisation), switch to fixed rate, or prepay; you get quarterly statements |
Frequently asked questions
Can I change the tenure later?
At a floating-rate reset, RBI rules let you choose a higher EMI or a longer tenure (within limits), and you can prepay any time.
Can I repay from abroad?
Yes — EMIs can be paid from an NRE/NRO account or by international transfer to the loan account.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.