Education Loan Calculator - Plan Your Study Abroad EMI

Education loan interest rates in India for FY 2025-26 range from 8.15% to 13% depending on the bank and loan amount. SBI Student Loan starts at 8.65-9.15%, Bank of Baroda at 8.15-9.65%, and Axis Bank/HDFC Credila at 10-13%. Government-backed Vidya Lakshmi portal lists accredited lenders. Subsidized schemes (Central Sector Interest Subsidy) offer 0% interest during moratorium for economically weaker sections (annual income below ₹4.5 lakh). Use the free Education Loan Calculator on AbacusHand to calculate your exact result instantly.

The moratorium period is the grace period during which you are not required to pay EMI on your education loan. It typically covers course duration + 6-12 months after completion or getting a job (whichever is earlier). During moratorium, simple interest accrues on the principal. For a ₹10 lakh loan at 9% with 4-year moratorium, interest accumulated = ₹3.6 lakh, making effective principal ₹13.6 lakh for EMI calculation. Paying interest during moratorium saves significantly. Use the free Education Loan Calculator on AbacusHand to calculate your exact result instantly.

Under Section 80E of the Income Tax Act, the entire interest paid on an education loan is deductible from taxable income for up to 8 consecutive financial years from the year repayment begins. There is no upper limit on the deduction — unlike Section 80C (capped at ₹1.5 lakh). This is available under the old tax regime. For a ₹10 lakh loan at 9%, paying ₹90,000 interest in year 1 saves ₹27,000 in tax at the 30% slab. Use the free Education Loan Calculator on AbacusHand to calculate your exact result instantly.

Top banks for education loans in India (FY 2025-26): SBI Scholar Loan (lowest rates, 8.65%+, no collateral up to ₹40 lakh for premier institutions), Bank of Baroda Baroda Education Loan (from 8.15%), Union Bank of India (8.35%+), Axis Bank (10%+), and HDFC Credila (specialized education lender, 10-13%). For study abroad: Avanse, InCred, and Prodigy Finance also offer loans without collateral. Compare on Vidya Lakshmi portal (vidyalakshmi.co.in). Use the free Education Loan Calculator on AbacusHand to calculate your exact result instantly.

For a ₹10 lakh education loan at 9% with a 2-year moratorium and 7-year repayment: interest during moratorium = ₹1.8 lakh, effective principal = ₹11.8 lakh, EMI = approximately ₹18,900/month. Total amount repaid = approximately ₹15.9 lakh on a ₹10 lakh loan. To reduce this, pay simple interest during the moratorium period — this keeps the principal at ₹10 lakh and reduces EMI to ₹15,980/month. Use the free Education Loan Calculator on AbacusHand to calculate your exact result instantly.