🎓 Education Loan EMI Calculator
Calculate your monthly EMI, total interest, and amortization schedule instantly
| Year | Principal Paid | Interest Paid | Balance |
|---|
🧮 Explore Other EMI Calculators
Plan your finances better with our comprehensive range of loan calculators
EMI Calculator
Calculate EMI for any type of loan. Universal calculator for all your loan needs.
Home Loan Calculator
Calculate housing loan EMI with tax benefits. Plan your dream home purchase.
Car Loan Calculator
Calculate auto loan EMI for new & used cars. Compare best car financing rates.
Bike Loan Calculator
Calculate two-wheeler loan EMI. Get best rates for new & used bikes.
Personal Loan Calculator
Calculate personal loan EMI instantly. Compare rates & check eligibility.
💡 Why Use Our Calculators?
🏠 Collateral Requirements for Education Loans
Understanding when you need collateral and what qualifies
Up to ₹7.5 Lakhs
- ✓ Best for India studies
- ✓ IIT/IIM/NIT courses
- ✓ Quick approval
₹7.5L – ₹15 Lakhs
- ✓ Premier abroad programs
- ✓ Professional courses
- ✓ Bank relationship helps
Above ₹15 Lakhs
- ✓ Study abroad (USA/UK)
- ✓ Multiple year programs
- ✓ Higher loan amounts
Acceptable Forms of Collateral
Residential Property
House, apartment, land with clear title. Most preferred collateral. Value: 50-70% of market price.
Fixed Deposits
FDs in same or other banks. Easiest to process. Loan up to 90-100% of FD value.
Securities & Bonds
NSC, LIC policies, mutual funds, shares. Loan up to 50-60% of current value.
Agricultural Land
Some banks accept agricultural land in certain areas. Value: 30-40% of market price.
💡 Smart Tips for Education Loan Success
Expert strategies to maximize your education loan benefits
Target Premier Institutions
Banks offer 1-2% lower rates and higher amounts (up to ₹1.5 crore) for IITs, IIMs, NITs, top 100 global universities. Check bank’s preferred institution list.
Apply 6 Months Early
Start process before admission! Early application = better rates, multiple bank options, no last-minute stress. Approval takes 4-8 weeks.
Maximize Tax Benefits (80E)
Claim 100% interest deduction for 8 years! On ₹20L loan at 10%, save ₹60K+ annually in taxes (30% bracket). No upper limit on interest!
Use Central Govt Schemes
CSIS (Interest Subsidy) for economically weaker sections – full interest paid during moratorium + 1 year. CGFSEL guarantees up to ₹7.5L without collateral.
Pay Interest During Study
Optional but smart! Paying simple interest during moratorium prevents capitalization, reduces total interest by 15-20%. Save ₹2-3L on ₹20L loan!
Consider Country-Specific Loans
For USA/UK/Canada: MPOWER, Prodigy Finance offer loans without collateral based on future earning potential. Better rates for STEM courses!
🌍 Education Loan by Study Destination
Typical loan amounts and costs for popular study destinations
⏰ Understanding Moratorium Period
The unique advantage of education loans – no EMI during study!
Moratorium Timeline Example
💡 Smart Strategy
Simple Interest During Moratorium: Interest still accrues during study period. You can either:
- Option 1: Pay simple interest monthly (₹15-20K/month for ₹20L loan)
- Option 2: Let it capitalize (adds to principal, EMI increases 15-20%)
Recommendation: If parents can afford, pay simple interest during study. Saves ₹3-5L on ₹20L loan!
💸 Education Loan Tax Benefits (Section 80E)
Maximize your tax savings – no upper limit on interest deduction!
Interest Deduction
No upper limit! Deduct entire interest amount paid in a financial year under Section 80E
Benefit Duration
Claim tax benefits for 8 years or until interest is fully paid, whichever is earlier
Total Tax Savings
Average savings over 8 years on ₹20L loan at 10% interest (30% tax bracket)
💰 Tax Savings Example
Scenario: ₹20 Lakh education loan at 10% interest for 10 years
Important: Only the borrower (student or parent/guardian who took the loan) can claim this benefit. The loan must be from a recognized financial institution. Keep all interest payment receipts for tax filing!
🎯 Calculate Your Education Loan EMI Now
Plan your dream education with our advanced EMI calculator. Get instant results, compare rates from top banks, and make informed decisions. Your future starts here!
❓ Frequently Asked Questions About Education Loans
Get answers to common education loan questions from eligibility to repayment
❓ What is the maximum education loan amount I can get?
Education loan amounts vary based on destination and course:
- India: Up to ₹10 lakhs (without collateral), ₹20 lakhs+ (with collateral)
- Abroad: Up to ₹20 lakhs (without collateral), ₹1.5 crore+ (with collateral)
- Top universities (IIT, IIM, Ivy League) get higher limits with better terms
❓ What is the interest rate on education loans in 2025?
Current education loan interest rates in India:
- Government Banks: 8.50% – 11.50% per annum
- Private Banks: 9.50% – 13.50% per annum
- NBFCs: 10.50% – 15.00% per annum
- Women & Girl Students: Get 0.25-0.50% concession
Most loans have floating rates linked to bank’s base rate. Rates are lower for premier institutions.
❓ When does EMI repayment start for education loans?
Education loans have a moratorium period (study + 1 year) during which you don’t pay principal:
- During Study: No EMI payment required (course duration)
- After Completion: Additional 1 year grace period (6 months to 1 year)
- Interest During Moratorium: Some banks capitalize it, others allow payment
- EMI Starts: After course + 1 year (typically after getting a job)
For a 2-year MBA, EMI starts after 3 years from loan disbursement.
❓ Is collateral required for education loans?
Collateral requirements depend on loan amount:
- Up to ₹7.5 lakhs: No collateral, only co-borrower required
- ₹7.5 to ₹15 lakhs: Third-party guarantee or collateral
- Above ₹15 lakhs: Collateral mandatory (property, FD, securities)
- Premier Institutions: Some banks offer higher limits without collateral
Under Central Scheme, loans up to ₹7.5L don’t need collateral for IITs, IIMs, NITs.
❓ What expenses are covered under education loan?
Education loans cover comprehensive expenses:
- Tuition Fees: Full course fees including lab charges
- Living Expenses: Hostel, food, accommodation (India: ₹40K-60K/year, Abroad: varies)
- Books & Equipment: Study materials, laptop, software
- Travel: One-time airfare for study abroad
- Insurance: Medical insurance for international students
- Other Costs: Exam fees, visa fees, caution deposit
❓ Can I get tax benefits on education loan?
Yes! Section 80E provides excellent tax benefits:
- 100% Interest Deduction: No upper limit on interest paid
- Duration: Up to 8 years or till interest is paid (whichever is earlier)
- Eligibility: Individual (student or parent/guardian)
- Courses: Higher education after Class 12 in India or abroad
- Example: ₹2L interest/year in 30% bracket = ₹60,000 tax saved annually!
Note: Only interest is deductible, not principal repayment.
❓ What is the typical education loan repayment tenure?
Repayment tenure varies by loan amount and institution:
- Standard Tenure: 10-15 years after moratorium period
- Small Loans (up to ₹5L): 5-7 years
- Large Loans (₹20L+): 12-15 years
- Maximum: Up to 20 years for very large amounts (₹50L+)
You can prepay anytime without penalty after moratorium to reduce total interest burden.
❓ Who can be a co-borrower for education loan?
Co-borrower requirements:
- Primary Options: Parents, spouse, or legal guardians
- Alternative: Siblings (in some banks if parents unavailable)
- Income Proof: Must have stable income source
- Age Limit: Should not exceed 65-70 years at loan maturity
- Liability: Co-borrower is equally liable for repayment
Most banks prefer parents as co-borrowers with good credit history and income stability.
❓ What happens if I cannot repay my education loan?
Options if facing repayment difficulties:
- Contact Bank Immediately: Explain situation before missing EMIs
- Loan Restructuring: Banks may extend tenure to reduce EMI
- Moratorium Extension: Additional 6-12 months if unemployed
- Interest Subsidy: Central scheme for economically weaker sections
- Last Resort: Co-borrower becomes liable for repayment
Never default – it affects credit score, co-borrower, and future loan prospects severely.
❓ Which courses are eligible for education loans?
Eligible courses after Class 12:
- Graduation: Engineering, Medical, Arts, Commerce, Science
- Post-Graduation: MBA, MS, MA, MSc, MTech, MD, PhD
- Professional Courses: CA, CS, CFA, CMA, Architecture
- Diploma/Certificates: From recognized institutions only
- Study Abroad: All recognized universities worldwide
Institution must be recognized by UGC, AICTE, or equivalent regulatory body.
🚫 Common Education Loan Mistakes to Avoid
Avoid these critical mistakes that can derail your education dreams
Applying Too Late
Start loan process 6 months before admission! Approval takes 3-6 weeks. Last-minute applications lead to rejections or missing admission deadlines.
Incomplete Documentation
Missing docs delay approval. Keep ready: admission letter, fee structure, marksheets, income proof, collateral papers. One missing paper = 2-3 weeks delay!
Not Comparing Banks
Interest rates vary 2-4% between banks! On ₹20L loan, 1% difference = ₹2.5L extra over 10 years. Compare at least 3-4 banks before deciding.
Borrowing More Than Needed
Calculate exact costs – tuition + living + travel. Don’t borrow extra for “buffer”. Each extra ₹1L costs ₹50K+ in interest over loan tenure.
Ignoring Institution Ranking
Banks offer better rates (1-2% lower) and higher amounts for top-ranked universities (IITs, IIMs, Ivy League). Check if your college is on bank’s preferred list!
Not Planning Repayment
Calculate post-study EMI based on expected salary. ₹20L loan = ₹22K EMI. If starting salary is ₹50K, can you afford it? Plan before borrowing!
💰 Education Loan Interest Rates 2025
Compare current rates from top banks for India & abroad studies
Note: Interest rates vary based on loan amount, course, institution ranking, collateral, and co-borrower income. Girl students get 0.25-0.50% concession. Premier institutions (IIT, IIM, top 100 global universities) get preferential rates. Always check latest rates before applying.
