Education Loan EMI Calculator

Education loans typically start with a moratorium period equal to the course duration + 6-12 months. During moratorium, simple interest accrues and is added to principal (capitalisation) or paid by the borrower. EMI begins after moratorium, with 5-15 year tenure.

Yes — Section 80E allows full deduction of interest paid on education loan taken for higher studies of self, spouse, children or legal ward for a maximum period of 8 years starting from the year repayment begins. No upper limit on deduction.

During moratorium, simple interest at the sanctioned rate accrues on the disbursed amount. The bank either capitalises it (adds to principal) or requires monthly payment. Capitalisation increases the post-moratorium EMI significantly — calculator models both options.

Vidya Lakshmi is a Government-of-India portal offering simultaneous application to multiple banks for education loans. Most PSU banks offer a Model Educational Loan Scheme covering courses in India (up to ₹10 lakh without collateral) and abroad (up to ₹20 lakh).

Yes — a parent / spouse co-borrower is mandatory. The co-borrower’s income is used to assess eligibility, and the loan gets CSIS (Central Sector Interest Subsidy) benefit for EWS / OBC / minority students under the Government’s interest-subsidy scheme (income limit ₹4.5 lakh).

PSU banks tie the rate to the repo rate + spread (typically repo + 1-3% = 7.5-9.5%). Private banks / NBFCs charge 9.5-15%. Collateral-free loans usually have a 0.5-1% higher rate than secured loans. CSIS beneficiaries pay 4% on the interest during moratorium.