Education Loan EMI Calculator

Moratorium = course duration + 6 months (or 1 year after getting job, whichever is earlier). During this period, you don't pay EMI but interest accrues on the loan. After moratorium, EMI starts on the accumulated amount (principal + accrued interest). Some banks offer the option to pay interest during the course.

Section 80E allows UNLIMITED deduction on education loan INTEREST (not principal) for 8 years from the year you start repaying. Unlike 80C (capped at ₹1.5L), 80E has no upper limit. This makes education loans one of the most tax-efficient borrowings. Available for self, spouse, and children.

No collateral needed for loans up to ₹7.5 lakh (most banks). For ₹7.5-20 lakh, third-party guarantee may suffice. Above ₹20 lakh (typically abroad studies), collateral (property/FD) is mandatory. SBI, BoB, and Canara Bank have the highest collateral-free limits.

Abroad education loan rates: SBI 8.5-10.5%, Bank of Baroda 8.35-9.85%, Axis Bank 13.7%, HDFC Credila 9-13.5%. Government banks are cheapest. Private lenders (Prodigy Finance, MPOWER) cater to specific countries but charge 11-14%. Always compare secured vs unsecured rates.