Plan your education loan repayment — calculate EMI, total interest, and full amortization schedule.
Monthly EMI
$24,902
Total Interest Payable
$591,749
Total Amount Payable
$2,091,749
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| Year | EMI | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | $298,824 | $155,838 | $142,986 | $1,344,162 |
| Year 2 | $298,824 | $172,156 | $126,668 | $1,172,006 |
| Year 3 | $298,824 | $190,184 | $108,640 | $981,822 |
| Year 4 | $298,824 | $210,098 | $88,726 | $771,724 |
| Year 5 | $298,824 | $232,098 | $66,726 | $539,626 |
| Year 6 | $298,824 | $256,405 | $42,419 | $283,221 |
| Year 7 | $298,794 | $283,221 | $15,573 | $0 |
Education loans help finance higher studies in India or abroad, covering tuition, accommodation, books, travel, and other related expenses. Loans up to ₹7.5 lakh typically need no collateral (just a co-borrower). Interest rates range from 8% to 13% p.a. at banks; NBFCs charge more. A key feature is the moratorium period — the course duration + 6–12 months after completion during which no EMI is due (though interest accrues). Repayment tenure after moratorium is typically 5–15 years. Interest paid is fully deductible under Section 80E for 8 consecutive years.
Where P = Principal, r = Monthly Interest Rate, n = Number of Months
What is the moratorium period?
The moratorium is the repayment holiday covering your course duration plus 6–12 months after completion. No EMI is required, but interest accrues on the outstanding amount. Starting partial interest payments during moratorium significantly reduces the total interest burden — use our calculator to see the difference.
Government bank vs private/NBFC education loan?
Government banks (SBI, Bank of Baroda, Canara Bank) offer lower rates (8–9.5%) and are eligible for government interest subsidy schemes for economically weaker sections. Private banks and NBFCs (Avanse, Credila, InCred) process faster but charge 11–14%. For premium institutions (IITs, IIMs, Ivy League), you'll get the best rates everywhere.
Is education loan interest tax deductible?
Yes! Under Section 80E, the full interest paid on education loans is deductible from taxable income for 8 consecutive financial years starting from the year you begin repayment. There is NO upper limit — even ₹10L of interest is fully deductible. This is one of the most underutilized tax benefits in India.
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