Education Loan EMI Calculator
Calculate your education loan EMI with current bank interest rates and important student considerations
Rates vary based on loan amount, collateral, and course type
Grace period after course completion before EMI starts
Secured loans typically have lower interest rates
Loan Summary
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SBI Education Loan
No collateral up to 7.5 Lakh
Moratorium period available
Tax benefits under Section 80E
HDFC Education Loan
Quick approval process
Flexible repayment options
Cover tuition + living expenses
Loan Repayment Schedule
Education Loan - Important Factors for Students
An education loan is a crucial financial tool for students pursuing higher education. Understanding key factors helps in making informed decisions about borrowing and repayment.
Course & Institution
Banks offer better rates for courses from recognized institutions. Professional courses (Engineering, Medicine, MBA) and premier institutions (IITs, IIMs, NITs) often get preferential rates starting from 7.15-8.30%.
Loan Amount Limits
Domestic Studies: Up to 10-40 lakh
Abroad Studies: Up to 1-3 crore
Without Collateral: Up to 7.5 lakh (varies by bank)
Interest Rate Factors
Secured Loans: 7.15% - 12% p.a.
Unsecured Loans: 9% - 16% p.a.
Rates depend on bank, course, institution ranking, and loan amount.
Moratorium Period
Grace period of 6 months to 1 year after course completion before EMI starts. Interest accrues during this period and is added to principal amount.
Collateral Requirements
Up to 7.5 Lakh: Usually no collateral required
Above 7.5 Lakh: Property, FDs, or securities needed
Co-applicant: Parent/guardian required in most cases
Tax Benefits (Section 80E)
Interest paid on education loan is fully deductible from taxable income for up to 8 years. No upper limit on deduction amount. Only interest component qualifies, not principal.
Key Documents Required
- Admission letter from institution
- Income proof of co-applicant
- Academic records (10th, 12th, graduation)
- Bank statements and IT returns
- Collateral documents (if applicable)
Eligibility Criteria
Age: 16-35 years
Academic: Minimum 50-60% in qualifying exams
Co-applicant Income: Minimum 2-3 lakh annually
Credit Score: 700+ preferred
EMI Formula: EMI = P × R × (1+R)^N / ((1+R)^N-1)
Note: This calculator provides estimates. Actual terms may vary based on bank policies, your profile, and current market conditions. Consult with banks directly for precise loan terms.