Education Loan Calculator — Know Your EMI Before You Borrow
Calculate your monthly EMI, total interest cost, and full repayment schedule for any education loan. See the principal vs interest split year by year before you sign.
| Year | Opening Balance | Principal Paid | Interest Paid | Total EMI | Closing Balance |
|---|---|---|---|---|---|
| Calculate above to see repayment schedule | |||||
How is education loan EMI calculated?
EMI = P x r x (1+r)^n / ((1+r)^n – 1), where P = principal, r = monthly interest rate (annual rate / 12 / 100), n = total months. For Rs 6L at 10.5% for 7 years, EMI is approximately Rs 10,332 per month.
What is the current education loan interest rate in India?
SBI Scholar Loan: 8.15-11.15%. HDFC Credila: 9.5-13.75%. Axis Bank: 13.7%. Government Vidya Lakshmi scheme offers subsidised rates for EWS students. Rates vary by institution type, loan amount, and collateral. Always compare before borrowing.
What is the moratorium period in education loans?
Most banks offer a moratorium (repayment holiday) equal to the course duration plus 6-12 months after completion. During this period, simple interest accrues on the loan. Repayment begins only after this period. This calculator assumes repayment starts immediately.
Is education loan interest tax deductible under Section 80E?
Yes. Under Section 80E, the entire interest paid on an education loan is deductible for up to 8 years from the year repayment begins. There is no upper limit on this deduction. This significantly reduces the effective cost of the loan for taxpayers.
How much education loan can I get without collateral?
Most banks provide up to Rs 10L for studies in India and up to Rs 20-50L for abroad without collateral. Loans above Rs 7.5L usually require collateral. Collateral can be property, FD, or insurance policy. E-commerce operators and IIT/IIM students often get higher limits.