About education loans
Education loans usually come with a moratorium: you don’t pay EMIs during the course and for a short period after it (often 6–12 months). Interest typically keeps building during the moratorium, so the amount you repay can be higher than what you borrowed. This calculator shows the EMI on the amount outstanding when repayment begins.
Education loan rates in India typically range from about 8.5% to 14% a year, depending on the lender, your credit score and income. Tenures go up to about 15 years. These figures are indicative; always check the latest rate with your lender.
Sample education loan EMIs
| Loan amount | Rate | Tenure | Monthly EMI | Total interest |
|---|---|---|---|---|
| ₹5,00,000 | 10% | 7 years | ₹8,301 | ₹1,97,250 |
| ₹10,00,000 | 10% | 7 years | ₹16,601 | ₹3,94,499 |
| ₹20,00,000 | 10% | 10 years | ₹26,430 | ₹11,71,618 |
| ₹30,00,000 | 10.5% | 10 years | ₹40,480 | ₹18,57,660 |
| ₹50,00,000 | 11% | 12 years | ₹62,678 | ₹40,25,598 |
| ₹75,00,000 | 11% | 15 years | ₹85,245 | ₹78,44,059 |
How the EMI is calculated
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Learn more on our main EMI calculator page.
Tax benefits
Under the old tax regime, the full interest paid on an education loan is deductible under Section 80E for up to 8 years, with no upper limit. The deduction is not available in the new regime.
Tips to pay less interest
- Pay the interest during the moratorium if you can. It stops interest from piling up.
- Compare public-sector banks, private banks and NBFCs. Rates and collateral rules vary a lot.
- Check for interest subsidies. Some government schemes support students from lower-income families.
- Factor in currency risk when studying abroad on a rupee loan.
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