Education Loan EMI Calculator
Calculate monthly EMI, total interest, and Section 80E tax savings on your student loan
tuneAdjust Inputs
Monthly EMI
₹13,493
≈ 13.5 Thousand
Total Interest
₹6,19,160
Interest Ratio: 0.62×
Loan Amount
₹10,00,000
61.8% of total
Total Repayment
₹16,19,160
38.2% is interest
Repayment Period
10 yr (120 mo)
Total instalments
Interest Rate
10.5% p.a.
Annual rate
Interest
38.2%
Principal
₹10,00,000
Interest
₹6,19,160
functions EMI Formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
P = Loan amount | r = Monthly rate | n = Repayment months
How Education Loan EMI Works
Education loans in India come with a moratorium period — you don't pay EMI during the course + 6–12 months after. However, interest accrues during this period. This calculator computes the EMI on the full loan amount after the moratorium, which is what you'll actually pay.
The big advantage of education loans is Section 80E — the entire interest paid is deductible from income tax (no upper limit) for 8 consecutive years from the year you start repayment.
lightbulb Example Calculation
Scenario: Ananya Rao takes a ₹10L education loan at 10.5% p.a. for an MBA, with 10-year repayment tenure
1Monthly rate r = 10.5% ÷ 12 = 0.875%
2n = 10 × 12 = 120 months
3Section 80E deduction saves ~₹57,600/yr (30% slab)
✓ Monthly EMI ≈ ₹13,493 | Total interest ≈ ₹6.2 lakh, fully deductible under 80E
Types of Education Loans
Choose based on your course, country, and collateral availability
🏛️
Domestic Education Loan
For courses in India. Up to ₹7.5L without collateral. Above ₹7.5L requires property or FD pledge. Rate: 10–13% p.a. Moratorium: course + 6–12 months.
Most Common
✈️
Overseas Education Loan
For study abroad. Up to ₹20–30L without collateral (NBFC). PSU banks require collateral for overseas. Disbursed in forex. GRE/GMAT scores improve approval chances.
Study Abroad
🏦
NBFC Education Loan
From Credila, Avanse, InCred etc. Faster disbursal, co-applicant friendly. Rates 12–16% — higher than banks but flexible eligibility. Good for niche courses banks may reject.
Flexible
🌱
Vidya Lakshmi Portal
Government portal aggregating loans from 38 banks. Single application reaches multiple lenders. Integrates with PM Vidyalakshmi subsidy scheme for interest subsidies.
Government
💡
Skill Development Loan
Up to ₹1.5L for vocational/skill courses (ITI, PMKVY). No collateral, no margin money. Repayment begins 12 months after course. Subsidised rate for EWS category.
Skill Courses
⚖️
Collateral-backed Loan
Pledging property, FD, or LIC policy gets lower rate (0.5–1% less) and higher sanction. Best for large overseas programs at top universities where ROI justifies the cost.
Lower Rate
💡 Section 80E Tax Benefit: The entire interest paid on an education loan is deductible under Section 80E — no upper cap. This applies for 8 consecutive years from when EMI begins. In the 30% tax bracket, deducting ₹1.5L/year interest saves ₹46,800 annually. Paying interest even during moratorium is deductible from that year.
Frequently Asked Questions
Education loan questions answered for Indian students
What is the moratorium period in education loans?
The moratorium is the EMI holiday — you don't pay instalments during this period. Standard moratorium = course duration + 12 months (or 6 months after getting a job, whichever is earlier). However, interest accrues during moratorium. Paying even partial interest during this period significantly reduces your outstanding balance and future EMI.
Do I need collateral for an education loan?
Under IBA model scheme: loans up to ₹4L — no collateral; ₹4L–₹7.5L — third-party guarantee; above ₹7.5L — tangible collateral (property, FD, etc.). NBFC lenders like Credila may provide up to ₹20L unsecured based on college ranking and earning potential of the course.
Who can be a co-applicant for an education loan?
Parents are the most common co-applicants (mandatory for most banks). Siblings, spouses, or in-laws may be accepted by some lenders. The co-applicant's income determines eligibility. A strong co-applicant with stable income and good credit score can get better rates and higher approval.
Can I prepay my education loan early?
Yes. PSU banks allow prepayment without penalty. NBFC lenders may charge 2–4% in the first 1–2 years. Since interest is highest early in the tenure, prepaying in the first 2–3 years saves the most. Even paying 1–2 extra EMIs per year can reduce tenure by 2–3 years significantly.
What expenses does an education loan cover?
Education loans typically cover: tuition fees, hostel fees, examination/library fees, travel expenses (for overseas study), books and equipment, laptop, study tours, and project costs. Loans are generally disbursed directly to the institution, not to the student's bank account.