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Free education loan EMI calculator India — instant monthly EMI for study in India and abroad.
Everything Indian students and parents need to know about education loan EMIs
An education loan EMI calculator works out the Equated Monthly Instalment you will pay once repayment begins on a student loan — the fixed monthly amount that clears both the principal and the accumulated interest over the chosen tenure. Education loans in India are offered by banks and NBFCs for study at recognised institutions in India and abroad, and the amounts involved are often large enough that the EMI decision deserves as much attention as the admission decision itself.
This is what makes education loans different from every other loan on this site. During your course and for a further 6 to 12 months afterwards — the moratorium period — you are not required to make EMI payments. But interest does not stop accruing. What happens to that interest depends on the loan:
The difference is substantial. A ₹10,00,000 loan at 10.5% over a four-year course accrues roughly ₹4,20,000 of interest during the moratorium alone. If that is capitalised, you begin repayment on about ₹14,20,000, and a 7-year EMI on that figure at the same rate is roughly ₹24,000 a month. Servicing the interest during the course avoids that compounding entirely. Most lenders offer a 1% interest concession during the moratorium if you service the interest rather than let it capitalise — worth asking about before you sign.
Loans for study in India are typically smaller, generally up to around ₹50 lakh for premier institutions, and often available unsecured up to a lower ceiling. Loans for study abroad are larger — overseas tuition and living costs for a two-year postgraduate programme can exceed ₹50 lakh — and lenders usually require collateral above roughly ₹40 lakh. Rates for both are broadly comparable, though some lenders price overseas loans slightly higher to reflect the higher amounts and longer tenures involved.
Under Section 80E of the Income Tax Act, the interest paid on an education loan is fully deductible from your taxable income, with no upper limit, for up to eight years beginning in the year you start repayment. The deduction is available to the borrower, and for loans taken for a spouse, children, or a student for whom you are the legal guardian. It applies to interest only — principal repayment does not qualify.
Education loans up to ₹7.5 lakh under the Credit Guarantee Fund Scheme for Educational Loans (CGFEL) generally do not require collateral or third-party guarantee, making them accessible to families without property to pledge. Above that threshold, lenders typically ask for tangible collateral — residential property, a fixed deposit or government securities — or a third-party guarantor with proven income. The exact ceilings vary by lender and have been revised periodically, so confirm the current limit with each bank before applying.
Education loans in India carry no prepayment penalty, so there is no cost to repaying early. Because interest accrues on the outstanding balance, prepaying directly reduces what you pay over the life of the loan. The one consideration is the Section 80E deduction: since it is based on interest actually paid, repaying early reduces the interest available to deduct in later years. For most borrowers the interest saved exceeds the tax benefit forgone, but it is worth a quick comparison if you are in a high tax bracket.
Education loan interest rates in India typically range from about 8% to 12% per annum for loans secured by collateral, and roughly 11% to 15% for unsecured loans. Loans under central government interest subsidy schemes may carry a lower effective rate for eligible students. Rates are usually linked to the lender's benchmark rate, so they move when the benchmark moves.
The moratorium period is the time during which you are not required to repay the loan, usually the course duration plus 6 to 12 months. Interest still accrues during this period. Some loans require simple interest to be serviced during the moratorium, while others capitalise that interest into the principal when repayment begins — which makes the starting balance larger and the EMI higher.
Yes. Under Section 80E of the Income Tax Act, the interest paid on an education loan is fully deductible from taxable income for up to eight years from the year repayment begins. There is no upper limit on the deduction, though it applies to interest only, not to principal repayment. Consult a tax adviser for your specific situation.
Loans under the Credit Guarantee Fund Scheme generally do not require collateral up to ₹7.5 lakh. Beyond that, many lenders offer unsecured education loans up to about ₹40 lakh for studies at approved institutions. Larger loans typically require tangible collateral such as residential property, a fixed deposit or government securities. Confirm the current ceiling with individual lenders.
Yes. Education loans in India generally carry no prepayment penalty, so you can repay early without charges. Prepaying reduces the interest that accrues, though it also reduces the interest available for the Section 80E deduction in future years. For most borrowers the interest saved outweighs the tax benefit forgone.
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