Education Loan EMI Calculator

## What is the Education Loan EMI Calculator? Education loans in India cover tuition, living expenses, and equipment for courses in India and abroad. Under the CGFSEL (Central Government Education Loan Scheme), banks offer loans up to Rs 20 lakh for studies in India and Rs 30 lakh for abroad without collateral. This calculator helps students and parents plan the post-course repayment. ## Formula Used EMI = P x [r(1+r)^n] / [(1+r)^n - 1] Same as standard EMI formula. Moratorium period (course duration + 6 months) is typically interest-free, after which repayment begins. ## Worked Example Loan amount: Rs 15,00,000, Rate: 8.5% p.a. Moratorium: 18 months, Repayment tenure: 84 months Note: Interest accrues during moratorium but EMI starts after moratorium. EMI (during repayment) = Rs 24,107 per month Total Payment = Rs 20,24,988 Total Interest = Rs 5,24,988 ## Frequently Asked Questions 1. What is the current education loan interest rate in India? Under the CGFSEL scheme, banks offer education loans at 7.7% to 9.0% p.a. for loans up to Rs 20 lakh. Loans above Rs 20 lakh (typically for abroad studies) may be priced at 9.5% to 11.0% p.a. 2. When does repayment of an education loan start? Repayment typically starts after the moratorium period — the course duration plus 6 to 12 months (varies by bank). During the moratorium, simple interest may be charged but no EMI is payable. 3. Are there tax benefits on education loans? Yes, under Section 80E of the Income Tax Act, the entire interest paid on an education loan is deductible from taxable income. There is no upper limit. 4. What collateral is required for education loans? Loans up to Rs 7.5 lakh typically require no collateral. Loans above Rs 7.5 lakh require collateral such as property, fixed deposit, or LIC policy. 5. Can I prepay my education loan without penalty? Yes, most banks allow prepayment of education loans without any prepayment penalty, even during the moratorium period.