My Son Is Preparing for JEE — Can We Afford a ₹15L Education Loan With an Existing Home Loan?
Propelld AdvisorMarch 24, 20262 min readIn Brief
At ₹15L education loan (10.5%, 7 years), your EMI post-graduation is ₹24,250/month. Combined with your home loan (₹28,000), that's ₹52,250 — about 32% of your ₹1.65L family income. Manageable but tight. Safer range: ₹11-12L loan, keeping combined EMI under 30%. Pay interest during the 4-year course (₹13,125/month) to save ₹1.9L in total — it's affordable at your income level.
The Numbers First
Your family income is ₹1,65,000/month (₹1.2L + ₹45K). Your existing home loan EMI is ₹28,000. A ₹15L education loan at 10.5% for 7 years adds ₹24,250/month in EMI — bringing total EMI to ₹52,250, which is 31.7% of income. That's just above the conservative 30% threshold.
| Loan Amount | EMI (7 years, 10.5%) | Total EMI (with home loan) | % of Income | Assessment |
|---|---|---|---|---|
| ₹10L | ₹16,150/month | ₹44,150 | 26.8% | Comfortable |
| ₹12L | ₹19,400/month | ₹47,400 | 28.7% | Safe |
| ₹15L | ₹24,250/month | ₹52,250 | 31.7% | Manageable but tight |
| ₹18L | ₹29,100/month | ₹57,100 | 34.6% | Stretching — not recommended |
Use ₹3-4L from your ₹6L savings to reduce the loan to ₹11-12L. Keep ₹2-3L as emergency buffer. A ₹12L loan brings your total EMI burden to 28.7% — solidly within the safe zone.
Paying Interest During Course vs. Full Moratorium
On ₹15L at 10.5%, monthly interest is ₹13,125. Paying this during the 4-year course costs ₹6.3L total but saves ₹1.9L in total loan cost (because interest doesn't get added to principal). Full moratorium is easier month-to-month but more expensive overall.