Education loan interest while you study: what builds up
Many education loans add interest while you study, before the first repayment. This shows what builds up on your own loan, so it's not a surprise later.
Your numbers
Common answers are filled in. Change the ones you know.
Typical: ₹10,00,000. Put in yours.
It's in your loan letter. Use your own rate.
Usually the rest of your course plus any months off your loan letter allows.
It only changes the order on your statement.
What waiting costs you
₹274 a day
About ₹3 lakh of interest before you start repaying
That's about ₹274 a day on a ₹10 lakh loan at 10%. Many loans add interest while you study, so it helps to know how yours works.
Your small stepFind your loan letter today and note how interest works while you study.
How we worked this out
- A day: ₹10 lakh × 10% ÷ 365 = ₹274.
- Before repaying: ₹10 lakh × 10% × 36 months ÷ 12 = ₹3 lakh.
- This is simple interest. If your loan adds interest on interest, it will be a little more. Your loan letter says which.
- How much it matters to you: 7 out of 10. It only changes the order on your statement.
Sources
- Gollwitzer & Sheeran (2006): Writing a simple 'When ___, I will ___' plan makes people noticeably more likely to follow through (a medium-to-large effect across 94 studies).
How it works
We multiply your loan by your yearly interest rate and the months until you start repaying.
It's simple interest. If your loan adds interest on interest, it will be a little more. Your loan letter says which.
The rate and the months come from your own loan letter.
Sources
Questions people ask
Is this telling me how to repay?
No. It shows what builds up on your own loan. Your lender can tell you what options you have.
Where do I find my rate?
In your loan letter or sanction letter, or on your lender's app.
Putting off more than one thing?
Pick up to five and get your Delay Statement: what to do first, what can wait, and one small step for today.
Want a nudge to act on it?
The app turns what you're putting off into a short list for each day: your Top 3 and one small step at a time. It's free.
We show what waiting costs on your own plans. We never tell you what to buy or invest in. Rules and averages change, so check the official pages before you plan anything.