Education Loan EMI Calculator
What a study loan costs each month, and what the interest adds up to.
A Rs 15 lakh education loan at 10.5% over 7 years costs about Rs 25,291 a month and Rs 6.24 lakh in interest. Under Section 80E the entire interest is deductible with no upper limit for eight years, but only under the old tax regime.
How this is calculated
Year-by-year breakdown
Free education loan EMI calculator
Education loans in India typically run 9.5 to 12% for domestic courses and 10.5 to 14% for study abroad, over 7 to 15 years. This calculator gives the EMI, the total interest and a full year-by-year schedule, plus an extra-payment field that shows what prepaying does once you start earning.
The detail that matters most is the moratorium. Repayment usually starts 6 to 12 months after the course ends, but interest accrues during the study period. If you can pay even the simple interest during the moratorium, most banks give a 0.5 to 1% rate concession and you avoid capitalising that interest into the principal, which is worth far more than it sounds.
Worked example
| Loan amount | Rate | Term | EMI | Total interest |
|---|---|---|---|---|
| Rs 10,00,000 | 10.5% | 7 years | ~Rs 16,861 | ~Rs 4.16 lakh |
| Rs 15,00,000 | 10.5% | 7 years | ~Rs 25,291 | ~Rs 6.24 lakh |
| Rs 40,00,000 | 11.5% | 12 years | ~Rs 51,333 | ~Rs 33.9 lakh |
Section 80E, the deduction with no upper limit
Under Section 80E, the entire interest paid on an education loan is deductible from taxable income, with no cap, for up to 8 years from the year repayment starts. There is no limit on the amount, unlike 80C. It applies only under the old tax regime, and only to loans from banks or approved financial institutions, not to family borrowing.
This page is the loan EMI calculator preset for education loans. See how prepaying works in the home loan prepayment approach, and check the tax effect in the income tax calculator.
Key facts
| Typical rate | 9.5 to 12% domestic, 10.5 to 14% overseas |
|---|---|
| Typical term | 7 to 15 years |
| Moratorium | Course duration plus 6 to 12 months |
| Section 80E | Full interest deductible, no cap, for 8 years, old regime only |
| Prepayment penalty | Normally nil on floating-rate education loans |
How to use the Education Loan EMI Calculator
- Enter the sanctioned loan amount, including tuition, living costs and travel if the bank funds them.
- Set the interest rate quoted by your lender.
- Set the repayment term, usually 7 to 15 years for education loans.
- Add an extra monthly payment to see how much interest prepaying saves once you start earning.
- Read the EMI, the total interest and the year-by-year balance.
Sources
Last reviewed and updated: 23 August 2026. Estimates only, not financial or tax advice.
Frequently asked questions
What is the interest rate on an education loan in India?
Roughly 9.5 to 12% for domestic courses and 10.5 to 14% for overseas study, depending on the lender, the institution's ranking and whether the loan is secured. Public sector banks are usually cheaper than NBFCs, and a collateral-backed loan is cheaper than an unsecured one.
When does education loan repayment start?
After the moratorium, which is normally the course duration plus 6 to 12 months. Interest accrues during that period, so paying at least the simple interest while studying avoids it being added to the principal and often earns a rate concession.
Is education loan interest tax deductible?
Yes, under Section 80E, the full interest paid is deductible with no upper limit, for up to 8 years starting from the year repayment begins. It applies only under the old tax regime and only to loans from banks or approved institutions.
Should I prepay my education loan?
Usually yes, once the 80E benefit is exhausted or if you are on the new tax regime, since there is no prepayment penalty on floating-rate education loans. Add an extra amount in the calculator to see the interest saved and the months cut from the term.
Is this education loan calculator free?
Yes, free with no sign-up or ads.