An education loan EMI calculator helps you plan repayment for a course in India or abroad well before you graduate. Enter the loan amount, interest rate, and tenure to see your monthly EMI, total interest, and total repayment, and remember, the interest portion is tax-deductible under Section 80E once repayment begins.
Worked Example:
Loan = ₹10,00,000 | Rate = 10.50% p.a. | Tenure = 8 years
r = 10.50 ÷ 12 ÷ 100 = 0.008750
n = 8 × 12 = 96 months
EMI = 10,00,000 × 0.008750 × (1.008750)⁹⁶ ÷ ((1.008750)⁹⁶ − 1)
= ₹15,440 per month
Is education loan interest tax deductible?
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Yes. Under Section 80E, the entire interest paid on an education loan is deductible from your taxable income, with no upper limit, for up to 8 years starting from when repayment begins. Only the interest qualifies, the principal portion does not get a deduction.
What is the moratorium period on an education loan?
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The moratorium is the course duration plus a grace period (usually 6-12 months after course completion) during which you don't have to pay EMIs. Interest still accrues during this time, and many lenders let you pay just the interest to reduce the final EMI burden once repayment starts.
Do I need collateral for an education loan?
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For loans up to ₹7.5 lakh, most banks under the Credit Guarantee Fund scheme don't require collateral. Above ₹7.5 lakh, lenders typically ask for collateral such as property or a fixed deposit, or a third-party guarantor.
Can I get an education loan for studying abroad?
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Yes, most major banks and NBFCs offer education loans for abroad studies, typically covering tuition, travel, and living expenses. Interest rates for abroad education loans tend to run slightly higher than domestic ones, and the loan amount can go up to ₹1.5 crore or more depending on the lender and destination.