🎓 Education Loan EMI Calculator 2026

For a ₹10 lakh education loan at 11% interest rate for 7 years, your monthly EMI is approximately ₹17,048. At SBI's Scholar Loan rate of 8.65%, the same loan would have an EMI of approximately ₹15,777 — saving you ₹1,271 every month. Use the calculator above to find your exact EMI by adjusting the loan amount, rate and tenure sliders.

The moratorium period is the time during which you are not required to pay EMIs on your education loan. It typically includes your course duration plus 6 to 12 months of grace period after graduation. During the moratorium, interest still accrues on your loan. For example, if you take a ₹10L loan for a 2-year MBA plus 6 months grace period — that is 30 months of interest accrual before your EMI begins. This can add ₹2–3 lakhs to your outstanding amount.

Under Section 80E of the Income Tax Act, the entire interest paid on an education loan in a financial year is deductible from your taxable income — with no upper limit. This deduction is available for 8 consecutive assessment years from the year EMI repayment starts. For example, if you pay ₹1.2L in interest in a year and are in the 30% tax slab, you save ₹36,000 in tax that year. Note: Only interest qualifies — principal repayment does not. The loan must be from a recognised bank or financial institution, not family or friends.

As of 2026, SBI Scholar Loan offers the lowest interest rates starting at 8.15% for students of premier institutions (IIT/IIM/NIT/AIIMS). For other colleges, SBI rates start around 10.05%. Canara Bank and Bank of Baroda are the next lowest options for government bank education loans. Private lenders like HDFC Credila are faster but charge 11–13.5%. For loans up to ₹7.5L, no collateral is required under the IBA model scheme at all public sector banks.

For studies in India, most public sector banks offer up to ₹40–80L (Bank of Baroda goes up to ₹80L). For studies abroad, SBI offers up to ₹1.5 crore. HDFC Credila has no upper limit for overseas education. Loans above ₹7.5L typically require collateral such as property, FD, or a third-party guarantee. The actual amount sanctioned depends on your course fees, institution, co-applicant income and credit profile.

Yes! Most public sector banks including SBI, Bank of Baroda and Canara Bank allow free prepayment of education loans with no penalty. Private lenders like HDFC Credila may charge a small prepayment fee. Prepaying your education loan early is strongly recommended — it reduces interest burden significantly and you lose the 80E tax benefit only on the portion of interest you no longer pay (which is far less than what you save in interest overall). Start prepaying from your first salary itself.

Standard documents required: (1) Admission letter or offer letter from the institution, (2) Fee structure from the college, (3) KYC documents of student — PAN, Aadhaar, (4) KYC and income documents of co-applicant (parent/guardian) — PAN, Aadhaar, ITR for 2 years, 6 months bank statements, (5) Marksheets of 10th, 12th and last qualifying exam, (6) For loans above ₹7.5L — property documents or FD certificate as collateral, (7) Passport and visa documents for study abroad loans.

No. Section 80E deduction is available only under the old tax regime. If you opt for the new tax regime (which has lower slabs but no deductions), you cannot claim the 80E deduction. For borrowers with large education loans and significant interest outgo, the old regime + 80E combination may result in lower overall tax. Calculate both options before choosing your regime for the financial year.