Question 1

What is the interest rate on education loans in India?

Accepted Answer

Education loan rates range from 8% to 12% for domestic studies and 9.5% to 13.5% for overseas education. SBI, Bank of Baroda, and Canara Bank offer the lowest rates. Government schemes like Vidyalakshmi portal help compare rates.

Question 2

Is there a moratorium period for education loans?

Accepted Answer

Yes. Education loans have a moratorium period of course duration + 6 to 12 months. During this period, you are not required to pay EMIs. Some banks offer interest-only payment during moratorium to reduce total cost.

Question 3

What tax benefit is available on education loans?

Accepted Answer

Section 80E allows deduction of the ENTIRE interest paid on education loans (no upper limit) from taxable income. This benefit is available for up to 8 years or until interest is fully repaid, whichever is earlier. Both Old and New regime allow this.

Question 4

Can I get education loan without collateral?

Accepted Answer

Yes, most banks offer collateral-free education loans up to ₹7.5-10 lakh for domestic studies and up to ₹20 lakh for abroad studies. Above these limits, banks typically require collateral such as property or fixed deposits.

Education Loan EMI Calculator

Frequently Asked Questions

Education Loan EMI Calculator

Frequently Asked Questions