Education Loan EMI Calculator
Calculate your monthly EMI, total interest, and repayment schedule for education loans in India. Includes moratorium period and interest subsidy calculation.
Loan Details
Course duration + 6-12 months grace period
Education Loan Interest Rates (2024-25)
| Bank | Interest Rate | Max Amount | Moratorium |
|---|---|---|---|
| SBI Student Loan | 8.15% – 10.20% | ₹1.5 Cr (abroad) | Course + 12 months |
| HDFC Credila | 9.00% – 13.25% | No upper limit | Course + 6 months |
| Axis Bank | 9.70% – 13.70% | ₹75 Lakh | Course + 6 months |
| Bank of Baroda | 8.35% – 9.85% | ₹80 Lakh (abroad) | Course + 12 months |
| PNB | 8.45% – 10.65% | ₹42 Lakh (abroad) | Course + 12 months |
| Canara Bank | 8.50% – 10.50% | ₹40 Lakh (abroad) | Course + 12 months |
| Prodigy Finance | Margin + base rate | Country-specific | 6 months post-course |
* Rates as of 2024-25. Actual rates depend on credit score, collateral, course, and university. Check the latest with your bank.
Frequently Asked Questions
What is the moratorium period in an education loan?
The moratorium period is the duration during which you don't need to pay EMIs. It typically covers your course duration plus 6-12 months after completion (to allow time for job hunting). However, interest keeps accruing during this period and is added to your principal (capitalized) unless you pay it.
How does interest subsidy work for education loans?
Under the Central Sector Interest Subsidy Scheme (CSIS), students from economically weaker sections (family income below ₹4.5 lakh/year) get interest paid by the government during the moratorium period. This applies only to loans taken from scheduled banks for courses in India at recognized institutions.
Should I pay interest during the moratorium period?
If possible, yes. Paying at least the interest during moratorium (called simple interest payment) prevents interest capitalization. This can save you ₹50,000–₹2,00,000+ over the loan tenure depending on loan size. Even partial payments help.
Is education loan interest tax deductible?
Yes. Under Section 80E of the Income Tax Act, the entire interest paid (no cap) on education loan is deductible for up to 8 years from the year you start repaying. This is available under both old and new tax regimes (new regime from AY 2024-25 onwards).
What is the maximum education loan without collateral?
Most banks offer up to ₹7.5 lakh without collateral (for studies in India). For amounts above ₹7.5 lakh, collateral (property, FD, etc.) is usually required. Some NBFCs like HDFC Credila and Avanse offer higher unsecured amounts based on the course and university ranking.
How is EMI calculated for education loans?
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P = principal after moratorium (including capitalized interest), R = monthly interest rate, N = number of EMIs. The principal increases during moratorium because unpaid interest gets added to it.