Education Loan EMI Calculator

At 9.5% for 10 years, the EMI on a ₹15 L education loan is about ₹19,410 per month. Over the full term you repay ₹23.29 L — ₹15 L of principal plus ₹8.29 L of interest, which is 55% of what you borrow. Adjust the amount, rate, and tenure above for your exact figures.

Lenders usually want your total EMIs to stay within 40–50% of net monthly income (the FOIR rule). With an EMI of ₹19,410, you would typically need at least ₹38,820 net per month for approval, and ₹48,525 or more to stay comfortable if you already have other EMIs or credit-card dues.

Education loan rates range from 8.15% (SBI Scholar Loans for IITs, IIMs, NITs) to 14%+ for general courses. Female borrowers get a 0.5% concession from most banks. Government-backed subsidized loans under the CSIS scheme offer interest subsidy for economically weaker sections during the moratorium period.

The moratorium is the course duration plus 6–12 months (or until you find employment, whichever is earlier). EMI payments are not required during this period, but interest still accrues daily and is added to your principal. A 15 lakh loan at 9.5% accrues roughly 2.4 lakh in interest during a 2-year moratorium, making your effective loan 17.4 lakh at repayment start.

Banks lend up to 7.5 lakh without any collateral for most courses. For loans above 7.5 lakh, banks require collateral (immovable property, FD, LIC policy). For premier institutions like IITs and IIMs, some banks offer up to 40 lakh without collateral based on the institution's reputation and placement record.

Yes - Section 80E allows full deduction of interest paid on education loans from your taxable income (old tax regime only) for up to 8 consecutive assessment years from the year repayment starts. There is no upper cap on the deduction amount, making it one of the most generous tax benefits available.

Paying interest during the moratorium is strongly recommended if you can afford it. On a 15 lakh loan at 9.5%, paying just the monthly interest (about 11,875/month) during a 2-year course prevents 2.4 lakh from being added to your principal. Most banks allow this and some even offer a concession for doing so.

Most banks have no prepayment penalty after the moratorium period ends. Prepaying aggressively in the first 2–3 years after repayment begins saves the most, since your principal is at its highest. Even prepaying 1–2 lakh at the start of repayment can cut 12–18 months off a 10-year education loan.