After taking an education loan, in how many months do I have to start repaying it?
Your grace period, called the moratorium, generally runs 6 to 12 months past your course end date, or 6 months after landing a job, whichever comes first. Interest still accrues during this time, so paying it off early reduces your total EMI burden once repayment formally begins.
Your education loan gives you a breathing period called the moratorium before EMIs begin, but interest keeps building throughout that window. Government banks are usually more generous with this timeline than private lenders and NBFCs. Knowing exactly when your clock starts helps you plan your first job search and your finances together.
Repayment Start Rules By Lender Type
| Lender Type | Moratorium Rule |
|---|---|
| Government banks | Course duration plus 12 months, or 6 months after a job, whichever is earlier |
| Private banks and NBFCs | Usually a 6-month post-course grace period |
| Study abroad loans | Often exactly 6 months after graduation regardless of employment |
What To Do During The Moratorium
- Pay off the simple interest during college or the grace period if you can afford it, since it directly cuts your total loan cost.
- Remember unpaid interest gets added to your principal once EMIs start, raising your monthly payment.
- Once repayment begins, you typically get up to 15 years to clear the full loan.
My Advice
Start paying at least the interest portion the moment you can, even during your course, because it meaningfully shrinks your EMI later. Tell your counsellor which bank you have borrowed from and whether you are studying in India or abroad so your exact repayment start date can be confirmed.
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