Education Loan EMI Calculator
Calculate education loan EMI for IIT, IIM, MBBS or overseas study (US, UK, Canada). Includes moratorium period and unlimited Section 80E tax deduction. SBI Scholar Loan from 8.15%.
Education Loan EMI Calculator
Results update instantly
India studies: ₹4L–₹20L · Abroad (US/UK/Canada): ₹15L–₹75L · IIM/IIT: up to ₹40L
SBI Scholar Loan: 8.15% · Axis Bank: 13.7% · Private banks: 10–14% · Government scholarships may subsidise interest
These numbers are a solid starting point. Your actual EMI may vary slightly by lender — always confirm before signing.
| Year | EMI Paid | Principal Paid | Interest Paid | Interest % | Balance |
|---|
Interest on education loans qualifies for Section 80E deduction for 8 years — with no upper limit. At 30% tax bracket, a ₹1.5L annual interest deduction saves ₹46,800/year in tax. This is the only loan with unlimited interest deduction.
What is an Education Loan EMI Calculator?
An education loan EMI calculator helps students and parents plan repayment of study loans for Indian or overseas education. Unlike other loans, education loans have a moratorium period — you don't pay EMI while studying, only after you start earning. This calculator helps you understand the actual monthly burden you'll face after graduation.
Enter your loan amount (₹5L for Indian colleges, ₹50L+ for US/UK universities), the interest rate, and your repayment tenure. The calculator accounts for the simple interest that accrues during the course period and shows your post-study EMI clearly.
How to use this calculator
Use the preset chips for common education loan amounts. For Indian colleges (IITs, IIMs, medical), typical loans are ₹10L–₹25L. For overseas education (US, UK, Canada, Australia), plan for ₹25L–₹75L. Enter the rate your bank has quoted — SBI Scholar Loans start at 8.15%, private banks range 10–14%. Set the repayment tenure, which typically begins 1 year after course completion.
Education loan formula and moratorium
The base EMI calculation uses the same reducing balance formula as other loans. However, interest accrues during the moratorium period (course duration + 1 year). If you don't pay this interest during the course, it gets added to the principal — increasing your EMI significantly.
EMI = Capitalised amount × r × (1+r)ⁿ ÷ ((1+r)ⁿ – 1)
For a ₹15L loan at 10.5% with a 2-year moratorium, the capitalised principal becomes approximately ₹18.15L, making actual EMI significantly higher than simple calculation suggests.
Key features of Indian education loans
Section 80E tax benefit: Interest paid on education loans is fully deductible under Section 80E for up to 8 years from the year repayment starts. There is no upper limit on this deduction — making education loans the only loan with unlimited interest deduction.
Collateral requirements: Loans up to ₹7.5L need no collateral in most banks. ₹7.5L–₹15L may need a co-applicant guarantee. Above ₹15L typically requires property as collateral.
Subsidy schemes: Government schemes like the Central Sector Interest Subsidy (CSIS) offer interest-free moratorium for EWS/LIG students at certain public institutions. Check eligibility before taking a private bank loan.
ThriftRupee tips for education loans
Tip 1: Pay interest during the moratorium. Every rupee of interest you pay during your course saves ₹1.5–₹2 in future EMI (compounding effect). If you have a part-time income or family support, paying just the monthly interest during studies significantly reduces post-graduation burden.
Tip 2: SBI vs private bank. SBI Scholar Loans (for IIT/IIM/NIT students) offer the lowest rates in India (8.15%). For all other institutions, compare SBI Education Loan with HDFC Credila, Avanse, and Auxilo — the latter two specialise in education loans and may have better terms for specific courses or countries.
Tip 3: Claim 80E from day one. Start claiming the Section 80E deduction from the first year of repayment. At 30% tax bracket with ₹1.5L annual interest, you save ₹46,800 in tax every year — effectively reducing your loan rate by 3%.