Education Loan Calculator: How 6%, 8% and 10% Rate Can Impact Your Total Payable?

Pursuing higher education, whether in India or abroad, often requires a significant financial investment. With tuition fees, living expenses, travel, and other costs adding up quickly, education loans have become an essential tool for many students and their families. While securing a loan might seem straightforward, the real challenge lies in choosing the right loan terms, especially when it comes to the interest rate and tenure.

Even a slight difference in the interest rate can result in substantial changes in your monthly EMI (Equated Monthly Instalments) and the total amount you end up repaying over the years. In this article, we will compare 3 common loan scenarios for ₹15 lakh over 5 years with varying interest rates to help you understand how each option affects your financial future.

Different Loan Scenario Comparision: 6% vs 8% vs 10%

Key Insights

• A 2% increase in interest rate from 6% to 8% raises your total interest by ₹84,923.
• Jumping to 10% interest increases the total interest burden by ₹1,72,282 compared to the 6% scenario.
• Even though the EMI difference per month might seem manageable, the cumulative cost over 5 years adds up significantly.

Before finalising your education loan, you can use the Education Loan EMI Calculator to simulate different scenarios based on your loan amount, tenure, and interest rate.

Also Read:15-Year vs 30-Year Home Loan: Which Should You Choose?

Conclusion

Choosing the right education loan isn't just about getting the funds—it’s about ensuring the repayments fit your future plans. As seen from the table, even a small change in the interest rate can lead to a much larger outflow over time. Always compare loan options, negotiate for better rates if possible, and use financial tools to map your EMI path wisely.

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.