Education Loan EMI Calculator
Calculate EMI on education loans with moratorium-period awareness, 80E tax deduction, and CSIS subsidy notes. Indian education loans range from 8% (PSU banks for Indian study) to 14% (private/NBFC for abroad programs).
Current Education Loan Rates by Lender (2026)
| Lender | Rate (p.a.) | Loan up to | Moratorium |
|---|---|---|---|
| SBI (Scholar Loan) | 8.15% – 11.15% | ₹1.5 Cr | Course + 1 year |
| HDFC Credila | 9.55% – 13.00% | ₹1.5 Cr | Course + 6 months |
| Axis Bank | 13.70% – 15.20% | ₹1 Cr | Course + 6 months |
| ICICI Bank | 9.50% – 14.00% | ₹1 Cr | Course + 6 months |
| Bank of Baroda | 8.50% – 11.10% | ₹80 Lakh | Course + 1 year |
| PNB Saraswati | 8.55% – 10.80% | ₹1.5 Cr | Course + 1 year |
| Avanse Finance | 10.50% – 14.00% | ₹1.5 Cr | Course + 6 months |
| InCred | 10.75% – 14.50% | ₹75 Lakh | Course + 6 months |
Female candidates typically get 0.5% concession. CSIS-eligible students get full interest subsidy during moratorium.
Understanding the Moratorium Period
Unlike other loans, education loan repayment is deferred until you finish the course plus a grace period (usually 6–12 months). During this moratorium, you either pay nothing or pay only simple interest. Simple interest payment during moratorium is highly recommended — it prevents the interest from being capitalized (added to principal), which would otherwise dramatically increase your EMI after moratorium.
Example: A ₹20 lakh loan at 10.5% with a 4-year moratorium without interest payment: the capitalized balance at EMI start becomes roughly ₹30 lakh. With monthly simple-interest payment during moratorium, you preserve the ₹20 lakh principal and save approximately ₹7–8 lakh in total repayment.
Section 80E Tax Benefit
The biggest financial win on an education loan is Section 80E of the Income Tax Act. It allows deduction of the ENTIRE interest paid in a year (no upper cap), for a maximum of 8 years from the start of repayment. The deduction is available for loans taken by self, spouse, children, or a student for whom you are a legal guardian. This applies under the old tax regime only.
A ₹10 lakh loan at 10.5% has first-year interest of roughly ₹1 lakh. At 30% slab, that's ₹30,000 in tax saved — effectively reducing your loan cost by 3% annually.
CSIS – Central Sector Interest Subsidy Scheme
For students from economically weaker sections (annual family income below ₹4.5 lakh), the Central Government pays the full interest during moratorium under the CSIS scheme. Eligibility: loans up to ₹7.5 lakh for professional/technical courses at approved institutions. Apply via your lending bank — most PSU banks handle CSIS processing automatically if you qualify.
Education Loan EMI Formula
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
where P = loan amount (including capitalized interest if moratorium unpaid), r = monthly rate, n = repayment tenure in months.
Frequently Asked Questions
What is the interest rate on education loans in India?
Rates range from 8% (SBI, PNB, PSU banks for Indian programs) to 14% (NBFCs, private banks for abroad study). Female students get 0.5% concession at most banks; CSIS-eligible students get full subsidy during moratorium.
What is 80E tax deduction?
Section 80E allows unlimited deduction on interest paid for education loans for 8 years from repayment start. Principal is NOT deductible. Available only in the old tax regime. Benefits self, spouse, children, or legal guardian loans.
How does the moratorium period work?
Course duration + 6–12 month grace period. You can pay simple interest during moratorium (recommended) or defer everything. Deferring capitalizes interest, making the final EMI larger.
Can I get a collateral-free education loan?
Up to ₹7.5 lakh: no collateral needed (parents as co-applicants). ₹7.5L-₹1.5Cr: needs third-party guarantee. Above ₹1.5Cr: tangible collateral like property required.
Is a co-applicant necessary?
Yes, almost always. Parents (or spouse if married) act as co-applicants. Their income and CIBIL score are assessed alongside the student's admission and institution reputation.