Most education loans offer a moratorium period that includes the study duration plus 6-12 months after graduation or employment, whichever comes first. During this time, some lenders charge simple interest that can be paid to reduce the total cost. Your full EMI payments begin after the moratorium period ends.

During the moratorium, interest continues to accrue on your loan balance. If you don't pay this interest, it gets added to your principal (capitalized), increasing your total loan amount and subsequent EMIs. Paying at least the interest during the moratorium can save you a significant amount over the life of the loan.

Yes, most education loan lenders allow prepayment without penalties, especially after the moratorium period. Making extra payments whenever possible—such as using bonuses or tax refunds—directly reduces the principal and can save you thousands in interest. Even small additional payments early in the repayment period have a large compounding effect.