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Education Loan Calculator

Calculate your education loan EMI with moratorium period, interest accrual, and Section 80E tax benefits.

₹10,00,000
₹1,00,000₹75L
9%
1%15%
2 years
1yr6yr
7 years
1yr15yr

Monthly EMI

₹20,132

Effective Loan Amount

₹12,51,272

Interest During Moratorium

₹2,51,272

Total Interest

₹6,91,088

Total Payment

₹16,91,088

Tax Benefit (80E)

₹4,39,794

During the moratorium period (2 years + 6 months), interest of ₹2,51,272 will accrue on your loan. Your effective loan balance at repayment start will be ₹12,51,272.

Yearly Repayment Breakdown

₹16,91,088

Yearly Repayment Breakdown data
YearPrincipalInterest
1₹0₹93,807
2₹0₹1,02,607
3₹0₹54,858
4₹1,34,425₹1,07,159
5₹1,47,035₹94,549
6₹1,60,828₹80,756
7₹1,75,914₹65,670
8₹1,92,416₹49,168
9₹2,10,466₹31,118
10₹2,30,188₹11,374
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How Education Loan EMI Works

Education loans come with a unique moratorium period — you don't pay EMI while studying. The moratorium typically covers the course duration plus 6 months (or 1 year after getting a job, whichever is earlier). During this period, interest accrues on the principal and gets added to your loan balance. After the moratorium, regular EMI repayment begins on the accumulated balance, which is higher than your original loan amount.

Current Education Loan Interest Rates (2026)

  • SBI — 8.50% onwards (Scholar Loan)
  • Bank of Baroda — 8.70% onwards
  • Canara Bank — 8.65% onwards
  • HDFC Credila — 9.50% onwards
  • Avanse — 10.50% onwards

Government banks typically offer lower rates. For loans above ₹7.5 lakh, collateral is usually required. NBFC lenders like Credila and Avanse are faster but charge higher rates.

Section 80E Tax Benefit

Full interest deduction: Unlike Section 80C (which has a ₹1.5 lakh cap), Section 80E allows you to deduct the entire interest paid on your education loan — there is no upper limit.

Duration: The deduction is available for up to 8 years from the year you start repaying the loan, or until the interest is fully paid, whichever is earlier.

Eligibility: The loan must be taken from a recognized financial institution for higher education (in India or abroad) for yourself, spouse, children, or a student for whom you are a legal guardian.

Tips for Education Loan Borrowers

  • Pay interest during moratorium if possible — this prevents compounding and significantly reduces your total outgo
  • Apply through Vidya Lakshmi portal for comparing offers from multiple banks
  • Consider partial prepayment from signing bonuses or early career savings
  • Keep all interest payment receipts for 80E tax claims
  • For loans under ₹7.5 lakh, no collateral is needed — start with government banks

Frequently Asked Questions

What is the moratorium period in education loans?
The moratorium period is the time during which you don't need to pay EMIs — it covers your course duration plus 6 months (or 1 year after employment, whichever is earlier). During this period, interest accrues on the principal and gets added to your outstanding balance, increasing the effective loan amount.
Should I pay interest during the moratorium?
Yes, strongly recommended. If you can pay even just the interest during your course, your effective loan amount stays the same as the original principal. Without this, interest compounds and your balance grows significantly. For a ₹10 lakh loan at 9% over a 2-year course, you'd save approximately ₹2 lakh in total interest by paying during moratorium.
Is there a limit on Section 80E tax benefit?
No, there is no upper limit on the interest amount you can deduct under Section 80E. However, the deduction is available only for a maximum of 8 years from the year you start repaying. Only the interest component qualifies — not the principal repayment.
Can parents claim 80E benefit?
Yes, the person who repays the loan (borrower or co-borrower) can claim the Section 80E deduction. If a parent is the co-borrower and making the repayments, they can claim the interest deduction in their own tax return. The student and parent cannot both claim the same interest amount.

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