Education Loan Calculator India -- FY 2025-26
Calculate your education loan EMI with moratorium interest, find your Section 80E tax saving (unlimited deduction, old regime only), and compare the cost of studying in India vs abroad. Covers SBI (8.15-10.65%), HDFC Credila, and all major lenders. Updated March 2026.
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How to Use This Calculator
Education Loan EMI tab
Enter your loan amount, interest rate, moratorium period (course duration + grace period), and repayment tenure. The calculator shows interest accrued during moratorium, your monthly EMI after moratorium ends, and the total cost of the loan. Toggle "Pay interest during moratorium" to see how it reduces your total cost.
Section 80E Tax Benefit tab
Enter the annual interest paid on your education loan and select your tax slab under the old regime. The calculator shows your annual tax saving and total saving over the 8-year deduction window. Section 80E has no cap on interest deduction -- only available under the old tax regime.
Study India vs Abroad tab
Enter loan amounts and interest rates for both studying in India (typically lower amounts, collateral-free up to โน7.5L) and studying abroad (typically higher amounts, collateral usually required). The calculator compares EMI, total cost, and Section 80E tax benefit for both scenarios side by side.
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The Formula
Education loan EMI is calculated using the standard reducing-balance EMI formula:
EMI = P × r × (1 + r)n / [(1 + r)n − 1]
Where:
P = Principal (loan amount + accrued moratorium interest, if not paid during moratorium)
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of EMI months (repayment tenure × 12)
Moratorium Interest:
Simple interest = Loan Amount × Annual Rate × Moratorium Years
If not paid during moratorium, this interest is added to the principal (capitalised), increasing your EMI.
Section 80E Tax Saving:
Annual saving = Interest paid in FY × Tax slab rate × (1 + Cess rate)
Maximum deduction period: 8 consecutive years from the year repayment begins.
Deduction is only on interest, not principal. No upper limit on the interest amount.
The moratorium period is typically the course duration plus a 6-12 month grace period. During this time, interest accrues on the loan. Banks like SBI allow you to pay only the interest during moratorium, which significantly reduces the total cost.
Example
Rahul -- Mumbai engineering student, โน20,00,000 education loan
Rahul takes a โน20 lakh education loan from SBI at 10% interest to pursue a 4-year B.Tech at IIT Bombay. The moratorium period is 4 years (course) + 1 year grace = 5 years total. He opts for a 10-year repayment tenure and is in the 30% tax slab (old regime).
Step 1: Moratorium interest (not paid during moratorium)
Step 2: EMI calculation
Step 3: Section 80E tax benefit
Rahul's โน20L loan costs him โน47.57 lakh in total EMI payments after 5 years of moratorium. Had he paid interest during moratorium (โน16,667/month), his EMI would be โน26,430 and total cost โน41.72L -- saving nearly โน6 lakh. The Section 80E deduction saves approximately โน7.5 lakh in taxes over 8 years.