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In Summary
Track your repayment schedules effectively
- The schedule is a month-by-month plan of your EMIs, from the first instalment to the last.
- During the moratorium (study period plus a grace period), EMIs usually have not started, but interest can still build up.
- In each EMI, the interest share falls and the principal share rises as your balance reduces.
- Take a fresh copy whenever your loan terms change, and use that one.
What is an education loan repayment schedule?
An education loan repayment schedule, also called an amortisation schedule, is a table that spreads your loan over its repayment period. For every instalment it shows the due date, the EMI, the interest portion, the principal portion and the balance still owed. Your loan agreement sets the terms. The schedule is how those terms turn into dates and amounts.
What does the schedule show?
| Detail | What it tells you |
|---|---|
| Loan amount and loan number | Which loan the schedule belongs to and what was borrowed |
| EMI amount | The fixed instalment due each month |
| Due date | When each EMI must reach your lender |
| Interest component | The part of the EMI that pays interest for that month |
| Principal component | The part of the EMI that reduces what you owe |
| Outstanding principal | The balance left after that instalment |
| Number of EMIs and tenure | How many instalments remain and when the last one falls |
| First EMI date | When repayment starts after the moratorium |
Note: The exact columns vary by lender.
Moratorium: How it changes your schedule
An education loan usually has a moratorium, a period before EMIs begin. Many education loans follow the Indian Banks' Association Model Education Loan Scheme. As described by the Ministry of Finance in Parliament, under that scheme:
- The moratorium runs for the course period plus one year.
- Simple interest accrues on the loan from the date of disbursement up to the end of the moratorium.
- Paying that interest during the study period and moratorium is optional for the student.
- At the start of repayment, the interest that has built up is added to the principal, and your EMI is calculated on the higher amount.
This is why the first EMI can be larger than you expected. Paying even part of the interest during the moratorium keeps the amount that gets added to your principal lower. Terms differ between lenders and loans, so confirm yours in your sanction letter and loan agreement.
Sample schedule
Illustrative only, not any lender's actual loan.
Assume a loan of Rs. 5,00,000 at 10% a year, a 3-year course plus a 1-year moratorium (4 years in all), no interest paid during that time, and 84 monthly EMIs after it.
- Simple interest built up over 4 years: Rs. 5,00,000 × 10% × 4 = Rs. 2,00,000.
- Principal at the start of repayment: Rs. 7,00,000.
EMI on Rs. 7,00,000 at 10% over 84 months: about Rs. 11,621.
| EMI no. | EMI | Interest part | Principal part | Balance after EMI |
|---|---|---|---|---|
| 1 | Rs. 11,621 | Rs. 5,833 | Rs. 5,788 | Rs. 6,94,212 |
| 2 | Rs. 11,621 | Rs. 5,785 | Rs. 5,836 | Rs. 6,88,376 |
| 12 | Rs. 11,621 | Rs. 5,280 | Rs. 6,341 | Rs. 6,27,275 |
| 42 | Rs. 11,621 | Rs. 3,488 | Rs. 8,133 | Rs. 4,10,378 |
| 84 (last) | about Rs. 11,600 | Rs. 96 | Rs. 11,504 | Nil |
Two things stand out. The EMI stays the same, but interest shrinks and principal grows every month, because interest is charged on a shrinking balance. And in total this borrower repays about Rs. 9.76 lakh on a Rs. 5 lakh loan, because Rs. 2 lakh of interest built up during the moratorium and then itself earned interest.
How to get your repayment schedule
- Sign in to your lender's net-banking portal or app and open your education loan account.
- Look for "repayment schedule", "amortisation schedule" or "loan statement" and download it.
- If you cannot find it online, ask at a branch or write to your lender with your loan number.
- Check the schedule against your sanction letter: loan amount, rate, EMI, first EMI date and tenure.
When your schedule changes
Ask for an updated schedule whenever any of these happens, and use the new one from then on:
- Part-prepayment: your balance falls, so your EMI or remaining tenure is revised. See education loan prepayment.
- Rate change on a floating-rate loan: your EMI or tenure may be revised. Ask your lender how and when it will tell you.
- Revised terms: any change in tenure, EMI or repayment start date.
- Missed or late EMIs: the dues and any charges are recorded against your account.
What if you miss an EMI?
Under RBI instructions for banks, NBFCs and other regulated lenders, effective from 1 January 2024, a penalty for not meeting the material terms of a loan must be levied as a "penal charge", not as extra interest added to your rate. No further interest can be charged on penal charges. The amount must be reasonable, disclosed in your loan agreement and Key Fact Statement and displayed on the lender's website, and any reminder must state the applicable penal charges. Check your agreement for the amount and pay overdue EMIs promptly.
Note: This information is for general reference only. Your repayment schedule and moratorium terms depend on your lender, loan agreement and current regulations. Examples are illustrative. Please confirm details with your lender and seek professional advice before making a decision.
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Frequently Asked Questions
Education Loan Schedule Basics
Overdue & Schedule
When do I receive my education loan repayment schedule?
Usually once your repayment terms are fixed, which for many education loans is before EMIs begin at the end of the moratorium. If you have not received yours, ask your lender and quote your loan number.
Do I have to pay EMIs during the moratorium?
Under the model scheme described by the Ministry of Finance, paying interest during the study period and moratorium is optional. Whether you pay or not decides how much is added to your principal, so check your agreement and compare both options.
Why is my first EMI higher than I expected?
Interest that built up during the moratorium may have been added to your principal before your EMI was calculated. A larger starting principal means a larger EMI for the same tenure and rate.
My schedule shows an EMI that does not match my sanction letter. What should I do?
Compare the loan amount, rate, tenure and first EMI date in both documents. If they differ, send your lender a written complaint with copies of both and ask for a corrected schedule. Keep your reference number.
Does an extra payment change my schedule?
A part-prepayment reduces your outstanding principal and your lender then revises your EMI or remaining tenure, depending on what you choose. An advance EMI may not. Ask for an updated schedule after the payment is processed.
How do I check that an EMI has been recorded correctly?
Match the payment in your loan statement with the instalment in your schedule. If it is missing or the amount differs, keep the transaction reference and contact your lender.
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