Education Loan EMI Calculator
Student Loan · Moratorium Period · Section 80E Tax Benefit · FY 2026-27
Education loans have a moratorium — no EMI during study period + 6/12 months after. Interest may accrue.
💚 Section 80E Tax Benefit (Old Regime)
| Component | Amount |
|---|---|
| Original Loan Amount | |
| Moratorium Period | |
| Interest Accrued During Moratorium | |
| Effective Principal at Repayment Start | |
| Repayment Tenure | |
| Monthly EMI | |
| Total Interest During Repayment | |
| Section 80E Deduction (Annual Interest) | |
| Total Amount Payable |
| Year | Opening Balance | Principal Paid | Interest Paid | 80E Deduction | Closing Balance |
|---|
🎓 Education Loan EMI Calculator India 2026
Use this free Education Loan EMI Calculator to calculate your monthly student loan EMI, total interest payable, moratorium impact, and Section 80E tax deduction for FY 2026-27. Supports all types of education loans — engineering, MBA, MBBS, and overseas education.
📊 Current Education Loan Interest Rates India (2026)
| Bank / Lender | Interest Rate | Max Loan |
|---|---|---|
| SBI Student Loan Scheme | 8.15% – 11.15% p.a. | ₹1.5 Crore |
| Bank of Baroda Baroda Vidya | 9.70% – 10.60% p.a. | ₹1.5 Crore |
| Canara Bank IBA Model Scheme | 10.40% – 11.40% p.a. | ₹1.5 Crore |
| HDFC Credila | 10.50% – 14.00% p.a. | ₹75 Lakh |
| Axis Bank Education Loan | 13.70% – 15.20% p.a. | ₹75 Lakh |
| Avanse Financial | 11.00% – 13.50% p.a. | No cap (abroad) |
*Rates vary by course, institution ranking, collateral, and applicant profile. Verify with lender.
⏸️ What is Moratorium Period in Education Loan?
The moratorium period is the time during which you don't need to repay the loan — it typically covers your course duration plus 6 to 12 months after completing the course (or getting a job, whichever is earlier). During moratorium:
- ✔ No EMI required during course study period
- ✔ Interest continues to accrue on the loan balance
- ✔ Some banks offer government subsidy (CSIS scheme) for economically weaker sections
- ✔ Accrued interest is typically added to principal at end of moratorium (capitalisation)
- ✔ Paying simple interest during moratorium reduces total interest burden significantly
💚 Section 80E — Education Loan Tax Deduction
Section 80E is one of the most powerful and underutilised tax deductions available:
- ✔ Full deduction on interest paid — no upper limit
- ✔ Available for 8 consecutive years from the year repayment starts
- ✔ Applicable for loans taken for self, spouse, children, or a student for whom you are legal guardian
- ✔ Only interest is deductible — not principal repayment
- ✔ Only available under Old Tax Regime
- ✔ Loan must be from a financial institution or approved charitable institution
- ✔ Course must be higher education (after Class 10+2)
🏛️ Government Education Loan Schemes (2026)
- PM Vidyalaxmi Scheme (2024): Collateral-free loans up to ₹10 lakh for top institutions. Full interest subsidy during moratorium for family income below ₹8 lakh.
- Central Sector Interest Subsidy (CSIS): Interest subsidy on loans up to ₹7.5 lakh for EWS students (income below ₹4.5 lakh) during moratorium.
- Dr. Ambedkar Interest Subsidy: For OBC/EBC students pursuing overseas education.
- Vidya Lakshmi Portal: Single portal to apply for education loans from multiple banks.
💡 Tips to Manage Education Loan Repayment
- ✔ Pay simple interest during moratorium — prevents interest capitalisation and reduces total burden
- ✔ Claim Section 80E every year for 8 years — significant tax saving if in 20–30% bracket
- ✔ Make prepayments when possible — education loans have no prepayment penalty
- ✔ Choose shorter repayment tenure if salary allows — saves lakhs in interest
- ✔ Balance transfer to lower-rate lender after 1–2 years of repayment
❓ FAQ — Education Loan Calculator India
1. What is the moratorium period for education loans?
The moratorium period is the course duration plus 6 to 12 months after completing the course (or getting a job). During this time, no EMI repayment is required but interest continues to accrue.
2. Is education loan interest tax deductible?
Yes. Section 80E allows full deduction on interest paid on education loan with no upper limit, for up to 8 consecutive years. This is available only under the Old Tax Regime.
3. What is the maximum education loan amount in India?
Public sector banks generally offer up to ₹10 lakh without collateral and up to ₹1.5 crore with collateral. Private lenders and NBFCs may offer higher amounts for premium overseas institutions.
4. Can parents claim Section 80E for child's education loan?
Yes. Section 80E deduction is available to the person who takes the loan — if parents take the loan for their child's education, the parents can claim the deduction.
5. Is there a government subsidy on education loan interest?
Yes. Under PM Vidyalaxmi Scheme (2024), students from families with income below ₹8 lakh get full interest subsidy during moratorium for loans up to ₹10 lakh at top-ranked institutions.
6. What happens if I can't repay education loan EMI?
Contact your bank before missing an EMI. Banks may offer restructuring, extended tenure, or temporary EMI moratorium. Defaulting affects CIBIL score and parents' credit if they are co-borrowers.
👉 Interest rates and government scheme details are as of April 2026. Verify with your lender for exact rates and eligibility. Section 80E deduction is available only under the Old Tax Regime. Last updated: April 2026.