Education Loan EMI
Calculate education loan EMI
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About Education Loan Calculator
Education loans help students pursue higher education in India and abroad. This calculator helps you plan your education loan repayment considering the moratorium period (study period + grace period) during which you don't pay EMI.
How Does Education Loan Work?
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Apply for loan with collateral (for loans >₹7.5L) or without (for smaller amounts)
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Interest starts accumulating from disbursement
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Moratorium period = Course duration + 6 months to 1 year
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During moratorium, no EMI payment, but interest accumulates
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After moratorium, start paying EMI for the loan tenure
Example:
For ₹10 lakh loan at 9.5% for 10 years with 2-year moratorium: Interest during moratorium = ₹1.9L. Monthly EMI after course = ₹15,456. Total interest = ₹6.47L.
Key Benefits
Pursue Dreams: Get quality education without financial burden on parents
Tax Benefit: Interest paid is deductible under Section 80E
Moratorium Period: Start repaying only after course completion
Low Interest: Education loans have lower rates than personal loans
No Collateral: Loans up to ₹7.5L don't require collateral
Long Tenure: Repay over 10-15 years with comfortable EMI
Frequently Asked Questions
What is moratorium period in education loan?
Moratorium is the time during which you don't have to pay EMI - typically course duration + 6 months/1 year after course completion. However, interest keeps accumulating during this period and gets added to principal (simple interest, not compounded).
Can I get education loan without collateral?
Yes, for loans up to ₹7.5 lakhs, most banks don't require collateral. For higher amounts, you need to provide collateral (property, FD, etc.) or have a co-borrower with good income. Some banks offer higher amounts without collateral to students of premier institutes.
What expenses are covered in education loan?
Education loan covers tuition fees, examination fees, library charges, lab fees, hostel fees, books, laptop, study tour expenses, and travel expenses (for studying abroad). Some banks also cover caution deposit and building fund.
Can I prepay education loan?
Yes, prepayment is allowed and recommended to save interest. Most banks don't charge prepayment penalty for education loans. If you get a job with good salary or receive any lump sum, prepaying reduces overall interest burden significantly.