Taking an education loan may feel like an investment in your future, but the EMI that follows can affect your financial life for years. For a ₹25 lakh education loan, your monthly EMI can be significant depending on the tenure and interest rate. Understanding this upfront is crucial before committing to long-term repayment.
| Particulars | Value |
| Loan Amount | ₹25,00,000 |
| Interest Rate | 10% |
| Tenure | 10 years |
| EMI | ₹33,038/month |
| Total Interest | ₹14,64,522 |
| Total Repayment | ₹39,64,522 |
Using an EMI calculator, we can see that for a ₹25 lakh loan, you will end up paying nearly ₹14.6 lakh extra as interest over time.
A typical fresh graduate earns only ₹4–8 lakh per annum. This means their monthly in-hand is roughly ~₹30,000–₹60,000. Now compare that with the EMI of ₹33,038/month. This means that during the early career stage, EMI can exceed income. This will leave limited room for meeting daily expenses, paying rent, and savings.
If you are planning to take a loan, choose a tenure that balances EMI and total cost. After completing your degree, start making partial payments as soon as possible. You can talk to your bank to see if EMI can be adjusted as income grows, and most importantly, avoid stretching tenure unnecessarily.
Remember, a small increase in EMI later can save lakhs in interest.
Read more: EMI Calculator: Here’s How Much Interest You Will Pay on a ₹10 Lakh Loan.
A ₹25 lakh education loan at 10% over 10 years results in an EMI of ₹33,038, with total repayment nearing ₹40 lakh. While the monthly EMI may appear manageable compared to shorter tenures, the higher interest outgo is an important factor to consider. Before taking a loan, it is essential to assess not just eligibility, but long-term affordability. Planning repayments in line with income growth and making periodic prepayments, where possible, can help strike a balance between manageable EMIs and controlled interest costs.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Mar 27, 2026, 3:07 PM IST
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