Education Loan Calculator

With "No payment", interest is fully capitalized — your effective loan balance grows and EMI after the moratorium is higher. "Interest only" means you pay the accrued interest each month so the principal stays flat. "Partial" lets you pay a fixed partial amount each month — any unpaid interest is capitalized. Paying interest during study can reduce total cost significantly.

Under Section 80E of the Income Tax Act, the entire interest paid on an education loan is deductible — there is no upper limit. The deduction is available for up to 8 assessment years starting from the year you begin repaying. This applies to interest paid during both the moratorium and repayment phases.

If you receive a scholarship or fund part of the education yourself, the effective loan amount decreases. A lower principal means less interest accrual, lower EMI, and a significantly smaller total repayment. Even a modest scholarship can save a substantial amount over the full loan tenure.

The capitalized balance is the total outstanding amount when EMI repayment actually starts. It equals the original loan plus any interest that accrued and was not paid during the moratorium period. This is the amount on which your EMI is calculated — it can be notably higher than the sanctioned loan if no interest is paid during study.

Yes. Education loans secured by collateral may have a lock-in period, but most lenders allow prepayment without penalty after a certain period. Prepaying reduces outstanding principal, cutting total interest and potentially shortening the tenure. Even small annual prepayments can lead to significant savings on long-tenure education loans.

Lenders consider the co-applicant’s (parent, guardian, or spouse) income when assessing loan eligibility and affordability. A higher combined income improves the EMI-to-income ratio, increasing the chances of approval and potentially qualifying you for better terms or a larger loan amount.

No. The interest rates used are illustrative defaults based on typical market ranges. Actual rates vary by lender, loan amount, collateral, credit history, and course/institution profile. Always verify the current rate with your bank or NBFC before making borrowing decisions.