Education Loan EMI Calculator India

Planning Your Education Loan

An Education Loan is an investment in your future earning potential. In India, banks provide education loans for higher studies both domestically and internationally. These loans have unique repayment structures unlike any other retail loan.

Our Education Loan EMI Calculator helps you estimate your future monthly obligations so you can plan your post-graduation career effectively.

The Moratorium Period (Holiday Period)

The most unique feature of an education loan is the Moratorium Period. This is the duration of your course plus a grace period (usually 6 months to 1 year after the course ends, or until you get a job, whichever is earlier).

• No EMIs: You are not required to pay EMIs during the moratorium period.
• Simple Interest Accrues: However, the bank will charge simple interest on the disbursed loan amount during this period. This accumulated interest is added to the principal amount once the moratorium ends, and your actual EMI is calculated on this massive combined total.

How to Save Massive Interest on Education Loans

While you don't have to pay during the moratorium period, it is highly recommended that you (or your parents) pay at least the Simple Interest portion every month while you are studying. If you pay the interest as it accrues during your study period, it prevents the interest from compounding into your principal later, saving you lakhs of rupees over the repayment tenure. Many banks even offer a 1% interest rate concession if you choose to service the interest during the moratorium!

Massive Tax Benefits (Section 80E)

Education loans offer unparalleled tax benefits in India:

• Under Section 80E, the entire amount of interest you pay on an education loan is 100% tax-deductible from your taxable income.
• There is no upper limit to this deduction. If you pay ₹3 Lakhs in interest in a year, you can deduct the entire ₹3 Lakhs!
• This deduction can be claimed for a maximum of 8 consecutive years starting from the year you begin repaying the interest.

Frequently Asked Questions