Education Loan EMI Calculator
Calculate monthly EMI for education loans for Indian and overseas studies. Plan your student loan repayment with amortization schedule.
Government Schemes for Education Loans
The Indian government offers several subsidised schemes that significantly reduce the cost of education loans. These are available over and above regular bank loans and are often overlooked by borrowers.
PM Vidyalakshmi Portal
Single-window platform at vidyalakshmi.co.in covering 38+ banks and 127+ loan schemes. Apply once, reach multiple banks. No middlemen or agent fees.
Central Sector Interest Subsidy (CSIS)
Full interest subsidy during the moratorium period for students from families with annual income up to ₹4.5 lakh. Covers domestic education loans up to ₹7.5 lakh.
Dr. Ambedkar Central Sector Scheme
Interest subsidy for OBC and EBC students pursuing overseas education. Covers up to 1% interest rate reduction for master's and PhD programs abroad.
Domestic vs Overseas Education Loan: Key Differences
| Feature | Domestic Studies | Overseas Studies |
|---|---|---|
| Interest Rate | 8.0% – 10.5% | 9.5% – 13.5% |
| Collateral-free limit | Up to ₹7.5 – 10L | Up to ₹20 – 75L (premium institutes) |
| Collateral needed above | ₹7.5L | ₹20L |
| Moratorium period | Course + 6–12 months | Course + 6–12 months |
| Key lenders | SBI Scholar, BOB Baroda | Avanse, HDFC Credila, ICICI Bank |
Section 80E: The Most Underused Tax Deduction
Section 80E lets you deduct the entire interest amount paid on an education loan - with no upper cap. This applies for up to 8 consecutive years from the year you start repaying, and works under both Old and New Tax Regime.
Example: Meera's Tax Saving
Meera repays an education loan and pays ₹72,000 in interest in FY 2025–26. She falls in the 20% tax bracket.
- Interest paid (deductible)₹72,000
- Tax saved at 20% slab + 4% cess₹14,976
- Net effective interest cost after tax benefit₹57,024
At the 30% slab, the saving would be ₹22,464 - effectively reducing your real interest rate significantly. No other deduction has this uncapped benefit under both tax regimes.
The Moratorium Trap - and How to Avoid It
Most students focus on the loan amount and tenure but ignore what happens during the moratorium. Interest continues accruing even when you pay no EMIs. On an ₹8 lakh loan at 9% over a 4-year moratorium, you accumulate approximately ₹3.2 lakh in interest before your first EMI.
Practical tip: If you have any part-time income during your course, pay the interest monthly during the moratorium. This prevents it from being capitalised into your principal, saving you from paying interest-on-interest for the entire repayment tenure.