Education Loan EMI Calculator 2026

Rates vary by bank: SBI Global Ed-Vantage 8.15–11.15% (lowest), Bank of Baroda Scholar 9.7–11.45%, Union Bank 8.35–10.85%, ICICI Bank 10.25–12%, HDFC Credila 10.5–13%, Avanse 10.5–14%, Axis Bank 13.7–15.2%. Public sector banks (SBI, BoB, Union) offer the lowest rates but require collateral for amounts above ₹7.5–40 Lakhs. Female students get a 0.5% concession from public sector banks.

Most Indian banks offer ₹20–150 Lakhs for recognised foreign universities. SBI, Bank of Baroda, Union Bank: up to ₹1.5 Crore. ICICI Bank, Avanse: up to ₹1 Crore. HDFC Credila: up to ₹75 Lakhs. Axis Bank: up to ₹40 Lakhs collateral-free. The amount depends on your university’s fee structure, living costs, and repayment capacity. Most banks cover tuition, living expenses, travel, visa fees, and insurance.

The moratorium is the period during which you do not pay EMI. Most Indian banks offer moratorium = course duration + 6–12 months, or 6 months after getting a job (whichever is earlier). During moratorium, interest accrues. Paying only the interest during this period (not the principal) prevents it from compounding — this significantly reduces total repayment. EMI starts after moratorium ends.

Yes — HDFC Credila and Axis Bank offer collateral-free loans up to ₹40 Lakhs. This is sufficient for Germany (₹20–30L total), Ireland, and most UK 1-year MS programmes. For USA or Australia (₹60–120L+), collateral (property) is typically required above ₹40L. The Vidya Lakshmi portal lists government schemes that offer collateral-free loans for eligible students.

Yes — under Section 80E of the Income Tax Act, interest paid on education loans is fully deductible from taxable income for up to 8 consecutive years from the year you start repaying. There is no upper limit on the deduction amount. This applies to the student (if they are repaying) or the parent. Principal repayment does not qualify for 80E but may qualify under Section 80C in some cases.

EMI is calculated using the reducing balance formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1). Where P = principal (in ₹), r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = total months (years × 12). For example: ₹30L loan at 10.5% for 10 years → r = 0.105/12 = 0.00875, n = 120, EMI = ₹40,480/month (₹0.40 Lakhs). Total repayment = ₹48.58 Lakhs. Total interest = ₹18.58 Lakhs.