Student loans help many students achieve their dreams of higher education. But most students and parents have one big question:
💭 “If I take a student loan, how much will I have to pay every month?”
This blog will help you understand:
- What is a student loan?
- What is EMI?
- How much should I pay for a student loan?
- Real-life examples of student loan EMIs
- Tips to manage your loan easily
Let’s understand everything step-by-step in a simple way!
Also Read: What is a Finance Charge on a Student Loan?
🎓 What Is a Student Loan?
A student loan is the money you borrow from a bank to pay for your studies.
It can cover:
- Tuition fees
- Hostel fees
- Books, laptops
- Travel (if abroad)
- Other education-related expenses
You have to repay this money after your studies, along with some interest.
⏳ When Do You Start Paying Back?
You don’t have to pay during your course. Banks give you a break. This is called the moratorium period.
🕐 Moratorium Period Includes:
- Course duration + 6 to 12 months (grace period)
- No EMI required during this period
- But interest may keep adding
Example:
If your course is 2 years and the grace period is 6 months, you will start paying after 2.5 years.
💰 What Is EMI?
EMI means Equated Monthly Installment. It’s the fixed amount you pay every month to the bank.
EMI includes:
- A part of your loan amount (Principal)
- A part of the interest
📊 How Much Should I Pay for a Student Loan?
EMI is calculated using this formula:
Where:
- P = Loan amount
- R = Monthly interest rate = (Annual Rate ÷ 12 ÷ 100)
- N = Number of months (loan tenure in months)
You don’t need to do it manually. You can use free EMI calculators like this:
👉 Groww Education Loan EMI Calculator
🧮 Easy Student Loan EMI Examples (with Step-by-Step Calculations)
📘 Example 1: ₹5,00,000 loan for 5 years at 9% interest
Step 1:
Loan amount (P) = ₹5,00,000
Interest rate = 9% per year → Monthly = 9 ÷ 12 ÷ 100 = 0.0075
Loan period = 5 years = 60 months
Step 2:
Using EMI formula or calculator:
EMI ≈ ₹10,377/month
Step 3:
Total Payment = ₹10,377 × 60 = ₹6,22,620
Total Interest = ₹6,22,620 – ₹5,00,000 = ₹1,22,620
📌 Summary Table:
| Details | Amount |
| Loan | ₹5,00,000 |
| Tenure | 5 years |
| Interest | 9% |
| EMI | ₹10,377 |
| Total Interest | ₹1,22,620 |
| Total Payable | ₹6,22,620 |
📘 Example 2: ₹10,00,000 loan for 7 years at 10% interest
Loan = ₹10,00,000
Rate = 10% annually = 0.833% monthly
Tenure = 7 years = 84 months
💡 Using calculator:
EMI ≈ ₹16,611/month
Total Paid = ₹16,611 × 84 = ₹13,95,324
Interest Paid = ₹3,95,324
📌 Summary Table:
| Details | Amount |
| Loan | ₹10,00,000 |
| Tenure | 7 years |
| Interest | 10% |
| EMI | ₹16,611 |
| Total Interest | ₹3,95,324 |
| Total Payable | ₹13,95,324 |
📘 Example 3: ₹15,00,000 loan for 10 years at 8.5% interest
Loan = ₹15,00,000
Interest Rate = 8.5% → 0.708% monthly
Tenure = 10 years = 120 months
Using calculator:
EMI ≈ ₹18,596/month
Total Payable = ₹18,596 × 120 = ₹22,31,520
Interest = ₹7,31,520
📌 Summary Table:
| Details | Amount |
| Loan | ₹15,00,000 |
| Tenure | 10 years |
| Interest | 8.5% |
| EMI | ₹18,596 |
| Total Interest | ₹7,31,520 |
| Total Payable | ₹22,31,520 |
📋 Student Loan EMI Comparison Table
| Loan | Interest Rate | Tenure | EMI | Total Payable | Total Interest |
| ₹5 Lakh | 9% | 5 yrs | ₹10,377 | ₹6,22,620 | ₹1,22,620 |
| ₹10 Lakh | 10% | 7 yrs | ₹16,611 | ₹13,95,324 | ₹3,95,324 |
| ₹15 Lakh | 8.5% | 10 yrs | ₹18,596 | ₹22,31,520 | ₹7,31,520 |
🏦 What Are the Interest Rates in SBI (2025)?
| SBI Loan Type | Interest Rate (Approx.) |
| Student Loan | 10.15% (up to ₹7.5 lakh) |
| Student Loan | 9.15% (above ₹7.5 lakh) |
| Scholar Loan | 7.15% – 7.90% |
| Global Ed-Vantage | 8.65% – 9.15% |
| Girl Student Concession | –0.50% |
Tip: Always check the latest rates on SBI’s official page
🔢 What Affects Your EMI?
| Factor | Impact |
| 🎯 Loan Amount | Bigger loan = Higher EMI |
| 📆 Loan Tenure | Longer tenure = Lower EMI, but more interest |
| 📉 Interest Rate | Higher rate = Higher EMI |
| 👩🎓 Gender | SBI gives 0.5% discount for girls |
| 🧑🏫 Institute | Scholar loans for top institutes get lower rates |
| 🕰️ Moratorium | Interest may add up if not paid during study |
📌 Hidden Charges to Know
- Processing Fee: 0.5% to 1%
- Pre-payment Penalty: Usually Nil (but confirm)
- Late Payment Fee: If you miss EMI
- Insurance: Some banks add loan insurance
✅ Tips to Reduce Your EMI or Interest
- Start paying during moratorium – reduces future burden
- Go for longer tenure if salary is low (can pay more later)
- Compare banks – don’t go with the first option
- Try part-prepayments – pay extra when you can
- Maintain a good CIBIL score – helps get better rates
🔍 Real Question: “How Much Should I Pay?”
👉 Use this method:
- Know your loan amount
- Check interest rate
- Choose loan tenure
- Use a free EMI calculator
- Calculate:
- EMI
- Total amount payable
- Interest cost
Example:
Loan = ₹10,00,000
Rate = 9%
Time = 7 years
EMI = ₹16,137/month
Total = ₹13,54,428
Interest = ₹3,54,428
📌 If your salary after college is ₹40,000/month, then this EMI is manageable.
📝 Conclusion
Student loans are helpful, but you must plan your repayment. Use EMI calculators to know your monthly amount in advance. Start saving early, pay during study time if possible, and compare all banks before applying.🎓 Education is an investment – repay it smartly!