Education Loan Calculator
EMI after the moratorium, plus the interest that accrues during study.
Education loans carry a moratorium equal to the course duration plus 6-12 months. Interest accrues throughout and, if unpaid, is capitalised into the principal. A ₹30 lakh loan at 10.5% over a 2-year course grows to about ₹37 lakh before repayment starts, raising the 10-year EMI from ₹40,500 to roughly ₹50,000.
Your Inputs
EMI after moratorium
Principal
₹30 L
Interest
₹23.45 L
Interest during study
₹7,87,500
Total interest paid
₹23,45,296
How this works
Section 80E has no upper limit
The entire interest paid on an education loan for higher studies is deductible for eight assessment years from the year repayment begins, with no cap — the single most generous deduction in Indian tax law. It is available only under the old regime, and only to the borrower, spouse or children.
Collateral thresholds
Public banks typically lend up to ₹7.5 lakh unsecured under the Vidya Lakshmi framework, and require tangible collateral above that. Interest subsidies exist for eligible families under the CSIS scheme for loans up to ₹7.5 lakh; check eligibility before opting for an NBFC.
Rupee loan vs local currency loan
A ₹ loan for overseas study carries currency risk on your repayment only if you earn abroad — but if you return, a foreign-currency loan becomes far more expensive as the rupee depreciates. Match the loan currency to your likely earning currency.
Frequently asked questions
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