Education Loan Calculator
Calculate EMI for education loans with moratorium period. Plan your higher education financing.
Loan Details
Note: Interest accrues during moratorium and is added to principal. Tax deduction on interest under Section 80E (no limit) for 8 years.
Repayment Summary
Repayment Schedule
| Year | Opening | Principal | Interest | Closing |
|---|---|---|---|---|
| Year 1 | ₹21.98 L | ₹1.38 L | ₹2.03 L | ₹20.60 L |
| Year 2 | ₹20.60 L | ₹1.52 L | ₹1.89 L | ₹19.08 L |
| Year 3 | ₹19.08 L | ₹1.67 L | ₹1.74 L | ₹17.41 L |
| Year 4 | ₹17.41 L | ₹1.84 L | ₹1.57 L | ₹15.57 L |
| Year 5 | ₹15.57 L | ₹2.02 L | ₹1.39 L | ₹13.55 L |
| Year 6 | ₹13.55 L | ₹2.22 L | ₹1.19 L | ₹11.32 L |
| Year 7 | ₹11.32 L | ₹2.44 L | ₹97,119 | ₹8.88 L |
| Year 8 | ₹8.88 L | ₹2.68 L | ₹72,877 | ₹6.20 L |
| Year 9 | ₹6.20 L | ₹2.95 L | ₹46,229 | ₹3.24 L |
| Year 10 | ₹3.24 L | ₹3.24 L | ₹16,936 | ₹0 |
Frequently Asked Questions
What is the moratorium period in education loan?
Moratorium period is the time during which you don't have to pay EMIs. It typically includes your course duration plus 6-12 months after course completion (or 6 months after getting a job, whichever is earlier). Interest accrues during this period and can be paid monthly or added to principal.
What is Section 80E tax benefit on education loan?
Under Section 80E of Income Tax Act, 100% of the interest paid on education loan is tax deductible. There's no upper limit on the deduction amount. This benefit is available for 8 years from the year you start repaying the loan. Principal repayment is not eligible for deduction.
What is the maximum education loan amount I can get?
For studies in India: Up to ₹10-15 Lakh (varies by bank). For abroad studies: Up to ₹1-1.5 Crore. Loans up to ₹4 Lakh don't require collateral. ₹4-7.5 Lakh needs third-party guarantee. Above ₹7.5 Lakh requires collateral security.
Should I pay interest during moratorium or let it accumulate?
Paying interest during moratorium (simple interest option) is highly recommended. This prevents interest from compounding into principal. For a ₹10 Lakh loan at 10% for 4-year moratorium: Simple interest = ₹4 Lakh vs Compound = ₹4.64 Lakh. You save ₹64,000!
What documents are needed for education loan?
Required documents: (1) Admission letter and fee structure (2) KYC documents (Aadhaar, PAN, passport) (3) Academic records (10th, 12th, graduation marks) (4) Income proof of co-applicant (5) Bank statements (6 months) (6) Property documents for collateral loans.
What is the interest rate on education loan?
Interest rates range from 8.5% to 14% depending on the bank, loan amount, and whether it's secured or unsecured. PSU banks (SBI, Bank of Baroda) offer lower rates. Private banks and NBFCs charge higher rates but have faster processing. Girls may get 0.5% concession.
Can I prepay my education loan without penalty?
Yes, most banks allow prepayment of education loans without any penalty or charges. Making prepayments whenever possible (bonus, tax refund) can significantly reduce your total interest payment. Even small additional payments make a big difference over time.
Who can be a co-applicant for education loan?
Parents (father/mother) are the most common co-applicants. Spouse, siblings, or in-laws can also be co-applicants if they have sufficient income. The co-applicant's income determines loan eligibility and is responsible for repayment if the student cannot pay.
What is the repayment tenure for education loan?
Typical repayment tenure is 5-15 years after the moratorium period ends. Shorter tenure means higher EMI but less total interest. Longer tenure means lower EMI but more total interest. Choose tenure based on your expected starting salary.
Can I get education loan for online/distance courses?
Education loans are primarily for regular full-time courses from recognized institutions. Some banks do offer loans for part-time, distance, or online courses from reputed institutions (like IIMs, BITS). Check with specific banks for their policies on non-regular courses.
What happens if I can't repay my education loan?
If you default, the bank will first contact you and co-applicant for recovery. Continued default leads to: Legal notices, Credit score damage, Recovery from guarantor/collateral. Some banks offer restructuring options. Contact your bank immediately if you face repayment issues.
Is there any subsidy available on education loan?
Yes, under the Central Sector Interest Subsidy Scheme (CSIS), students from economically weaker sections (family income below ₹4.5 Lakh) get full interest subsidy during moratorium period. The government pays the interest while you study. Check eligibility with your bank.