Education Loan EMI Calculator India 2026 — All Bank Interest Rate Calculator
Calculate education loan EMI with moratorium period, total interest, and Section 80E tax savings. Compare all bank education loan interest rates — SBI, BOB, HDFC Credila, Avanse. Includes India & abroad loan calculator.
🏫 SBI 8.15% | BOB 8.15% | IDBI 6.90%⏳ Moratorium Period Calculator📋 Section 80E Tax Saving✅ India & Abroad Loan⚖ PSU Bank vs NBFC Comparison💸 Pay Interest During Study?
Education Loan EMI Calculator 2026
Your Education Loan EMI
Enter loan amount, interest rate, course duration, and repayment tenure. Shows EMI after moratorium with capitalised interest.
🏫 Study Destination
📈 Loan Details
₹10.00 L
₹50,000₹3 Crore
8.15%
6% (Govt scheme)18% (NBFC/high)
4 yrs
1 yr6 yrs
7 yrs
1 yr15 yrs
⏳ During Moratorium — Pay Interest?
⏳ Unpaid interest during moratorium is added to principal — significantly increasing EMI. Paying simple interest during study keeps EMI lower after graduation.
⏳ Loan Details for Comparison
₹10.00 L
₹50,000₹3 Crore
8.15%
6%18%
5 yrs
1 yr7 yrs (course+1)
7 yrs
1 yr15 yrs
📈 Shows side-by-side: EMI if you pay interest during study vs EMI if you let interest capitalise. Monthly interest during study = Loan × Rate / 12.
📋 Loan & Tax Details
₹10.00 L
₹50,000₹3 Crore
8.15%
6%18%
7 yrs
1 yr15 yrs
30%
5%30%
✅ Section 80E: 100% of education loan interest is deductible — NO upper limit. Available for 8 years of repayment. Applicable under Old Tax Regime only.
Vikash RoyalARN-356458 B.E. | MBA Finance | NISM Certified | 7+ Years in Finance
🏫 Education Loan Interest Rate — All Banks India July 2026
Complete education loan rates across PSU banks, private banks, and NBFCs. PSU banks offer lowest rates under IBA model scheme. NBFCs fund 100% cost for abroad studies.
SBI Student Loan
8.15–11.15%
Max 15 yrs repayment | PSU
India: up to ₹10L | Abroad: up to ₹1.5Cr. Best PSU rate. Moratorium = course + 1 yr.
PSU✅ Lowest
Bank of Baroda
8.15–11.50%
Max 15 yrs repayment | PSU
Baroda Scholar — abroad loans up to ₹1.5Cr. Covers tuition, hostel, travel, laptop.
PSU✅ Lowest
Punjab National Bank
8.55–11.25%
Max 15 yrs repayment | PSU
PNB Saraswati — India up to ₹10L. PNB Udaan — abroad up to ₹1.5Cr.
PSU
Canara Bank
8.85–11.25%
Max 15 yrs repayment | PSU
IBA model scheme. Good for Tier-2 city students. Covers all recognised institutions.
PSU
Union Bank
8.30–10.50%
Max 15 yrs repayment | PSU
Union Education — lowest PSU rate for top institutions. Additional 0.5% concession for girls.
PSU✅ Lowest
HDFC Bank
9.50–14.50%
Max 10 yrs repayment | Private
Fast processing. Pre-approved for existing customers. No margin money up to ₹7.5L.
Private
ICICI Bank
9.50–14.00%
Max 10 yrs repayment | Private
iLens digital. Covers GRE/GMAT coaching too. Up to ₹1Cr for abroad.
Private
Axis Bank
9.70–14.50%
Max 10 yrs repayment | Private
Axis Bank Education — fast disbursal. Special rates for IITs/IIMs/NLUs.
Private
IDBI Bank
6.90–9.90%
Max 15 yrs repayment | PSU
IDBI Vidya Lakshmi — IBA scheme. Special rates under govt scholarship schemes.
PSU✅ Lowest
Avanse Financial
9.50–13.50%
Max 12 yrs repayment | NBFC
Education-only NBFC. Covers 100% cost. Best for abroad — US, UK, Canada, Australia.
NBFC
HDFC Credila
9.50–13.75%
Max 12 yrs repayment | NBFC
India's first education loan NBFC. Strong for GRE/GMAT destinations. Door-step service.
NBFC
InCred Finance
10.50–15.00%
Max 10 yrs repayment | NBFC
Covers entire cost of education. Minimal documentation. Good for non-traditional courses.
NBFC
Rates as of July 2026. IDBI Bank at 6.90% is under specific government scholarship/subsidy scheme — verify eligibility. SBI and BOB at 8.15% are the standard best-rate PSU offerings. Girls get 0.50% concession at most PSU banks. Additional concessions for IIT/IIM/NIT admissions at several banks. NBFCs (Avanse, HDFC Credila) have higher rates but fund 100% of cost abroad including living, travel, and health insurance — which PSU banks often don't cover fully.
📈 Education Loan EMI Calculator — Course-Wise EMI at All Bank Rates
Monthly EMI after course completion for popular courses at different bank rates. Assumes moratorium = course duration + 1 year, interest capitalised during moratorium.
Course / Destination
Loan Amount
@ SBI 8.15% 7 yr repay
@ 9.50% HDFC/NBFC
@ 11.50% Higher rate
Mora. Int/mo at 8.15%
80E Tax Saved 30% slab, yr 1
B.Tech India
₹10.0L
₹22,043
₹24,107
₹27,384
₹6,792
₹25,428
MBA IIM
₹25.0L
₹48,725
₹52,505
₹58,462
₹16,979
₹63,570
MBBS Private
₹10.0L
₹22,043
₹24,107
₹27,384
₹6,792
₹25,428
B.Tech Private
₹8.0L
₹17,634
₹19,286
₹21,907
₹5,433
₹20,342
MS USA (2yr)
₹60.0L
₹116,941
₹126,012
₹140,309
₹40,750
₹152,568
MBA UK/Australia
₹50.0L
₹97,451
₹105,010
₹116,924
₹33,958
₹127,140
MBBS Abroad
₹40.0L
₹93,277
₹102,640
₹117,532
₹27,167
₹101,712
Law NLU (5yr)
₹5.0L
₹15,149
₹16,486
₹18,584
₹3,396
₹12,714
EMI includes capitalised moratorium interest (course + 1 year). Moratorium interest/month = loan × 8.15% ÷ 12 — paying this during study prevents capitalisation and significantly lowers post-graduation EMI. 80E tax saved = year 1 interest × 31.2% (30% slab + 4% cess). Section 80E available for 8 years of repayment — total lifetime tax saving on a ₹60L MS USA loan at 8.15% = ₹15–20 lakh over 8 years at 30% slab.
⏳ Pay Interest During Moratorium vs Capitalise — Impact Table
Side-by-side comparison for ₹10L education loan at 8.15% — paying simple interest during moratorium vs letting it capitalise. Shows exact difference in EMI and total cost.
Moratorium Period
Monthly Interest to pay during study
Capitalised Interest if not paid
EMI (Capitalised) 7-yr repay
EMI (Paid Int.) 7-yr repay
EMI Saved/mo by paying interest
Total Interest Saved
1 yr
₹6,792/mo
₹81,500
₹16,937
₹15,661
₹1,276
₹25,716
2 yrs
₹6,792/mo
₹163,000
₹18,214
₹15,661
₹2,553
₹51,431
3 yrs
₹6,792/mo
₹244,500
₹19,490
₹15,661
₹3,829
₹77,147
4 yrs
₹6,792/mo
₹326,000
₹20,767
₹15,661
₹5,106
₹102,862
5 yrs 📌
₹6,792/mo
₹407,500
₹22,043
₹15,661
₹6,382
₹128,578
6 yrs
₹6,792/mo
₹489,000
₹23,319
₹15,661
₹7,658
₹154,293
7 yrs
₹6,792/mo
₹570,500
₹24,596
₹15,661
₹8,935
₹180,009
📌 5-year moratorium highlighted (typical for BTech + 1 year). ₹10L at 8.15% — monthly interest to pay during moratorium = ₹6,792. If you pay this during study: EMI after course = ₹15,388/month. If you don't pay: Capitalised interest = ₹4.07L, new principal = ₹14.07L, EMI = ₹21,630/month — ₹6,242 higher every month for 7 years = ₹5.24L extra total cost. Paying ₹6,792/month during 5 study years (₹4.07L total) saves ₹5.24L in future EMIs — a compelling math. Even partial interest payment significantly reduces future EMI burden.
🏫 Education Loan for Popular Courses — EMI & Cost Breakdown
Estimated education loan EMI after graduation for popular courses at SBI rate (8.15%), interest capitalised during moratorium, 7-year repayment.
B.Tech (IIT/NIT)
🏴 India | 4-yr course | Loan: ₹15L
₹33,064/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹1,277K | 80E saved yr1: ₹38,142
Premier Inst.
MBA (IIM/Top B-Sch)
🏴 India | 2-yr course | Loan: ₹25L
₹48,725/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹1,593K | 80E saved yr1: ₹63,570
Premier Inst.
MBBS (Govt College)
🏴 India | 5-yr course | Loan: ₹5L
₹11,660/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹479K | 80E saved yr1: ₹12,714
Medical
B.Tech (Private)
🏴 India | 4-yr course | Loan: ₹8L
₹22,912/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹575K | 80E saved yr1: ₹20,342
Standard
MS (USA/Canada)
🌐 Abroad | 2-yr course | Loan: ₹60L
₹116,941/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹3,823K | 80E saved yr1: ₹152,568
Abroad
MBA (UK/Australia)
🌐 Abroad | 2-yr course | Loan: ₹50L
₹97,451/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹3,186K | 80E saved yr1: ₹127,140
Abroad
MBBS (Russia/China)
🌐 Abroad | 6-yr course | Loan: ₹25L
₹61,489/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹2,665K | 80E saved yr1: ₹63,570
Medical Abroad
Law (NLU 5yr)
🏴 India | 5-yr course | Loan: ₹5L
₹15,149/mo
EMI after graduation | 7-yr repay @ SBI 8.15%
Total interest: ₹409K | 80E saved yr1: ₹12,714
Law
EMI at SBI 8.15% with interest capitalised during moratorium. Girls get 0.50% concession (rate becomes 7.65%) — reducing EMI by ₹300–2,000/month depending on loan size. Students from premier institutions (IIT, IIM, IISc, top US universities) often get pre-approved offers at minimum rates. Repaying in 5 years instead of 7 saves substantial interest — use the EMI Calculator above to compare.
💡 4 Smart Education Loan Strategies 2026
Education loan is an investment in your earning capacity — manage it strategically to minimise lifetime interest cost.
⏳
Pay Simple Interest During Moratorium — Saves Lakhs Later
The single most impactful education loan strategy: pay the monthly simple interest during your course years. On a ₹10L loan at 8.15%, monthly moratorium interest = ₹6,792. For a 4-year BTech (moratorium = 5 years), total simple interest = ₹4.07L. If paid: EMI after graduation = ₹15,388/month. If not paid: EMI = ₹21,630/month — ₹6,242 more every month for 7 years = ₹5.24L extra total cost. Sources to fund moratorium interest payments: part-time work or internship income (common for BTech/MBA students), scholarship/stipend, parents paying a portion, side income from projects or freelancing. Even paying 50% of moratorium interest halves the EMI impact. Make this a priority from Day 1 of your course.
📋
Claim Section 80E Every Year for 8 Years — No Limit Deduction
Section 80E is one of the most generous tax deductions in India — 100% of education loan interest is deductible with NO upper cap (unlike home loan's ₹2L limit). For an MS USA loan of ₹60L at 9.5%, year 1 interest = ₹5.7L. At 30% slab: ₹5.7L × 31.2% = ₹1,77,840 tax saved in Year 1 alone. Over 8 years of repayment: cumulative 80E tax saving = ₹8–15L on a ₹60L loan. Important: 80E is available under Old Tax Regime only. If you're in the 30% slab after graduation, staying on Old Regime purely for 80E makes strong financial sense — the tax saving can be worth ₹1–2L annually. Ensure your employer's payroll captures 80E proof and that ITR Schedule VI is correctly filed.
🏫
PSU Bank for Premier Institutions, NBFC for Full Funding Abroad
The optimal education loan strategy combines both: Use PSU bank (SBI, BOB, Union Bank) for the maximum amount they'll sanction — at 8.15–8.30%, these rates are significantly lower than NBFCs. PSU banks prioritise premier institutions (IITs, IIMs, Top-50 US universities). For any funding gap (100% cost required but PSU sanctioned 80%), top up with HDFC Credila or Avanse — they cover living expenses, travel, health insurance, and laptop that PSU banks may not. Example: MS USA costs ₹60L all-in. SBI sanctions ₹40L at 8.15%. HDFC Credila tops up ₹20L at 11%. Blended rate = ₹40L×8.15% + ₹20L×11% ÷ 60L = 9.1% — still better than taking full ₹60L from NBFC at 11%.
📈
Prepay Aggressively in First 3 Years After Graduation — ROI is Highest
After graduation, your salary grows fastest in years 1–5. Use this window for aggressive education loan prepayment — the interest-saving ROI is highest in early years. Strategy: Reserve 30–40% of first year's increment purely for education loan prepayment. Even one annual bonus-level prepayment (say ₹1–2L) in years 1–3 saves ₹3–6L in total interest on a ₹15L loan at 9.5%. Also use 80E deduction strategically — don't over-prepay if your marginal tax rate is 30% (the 80E saving is itself 31.2% of interest, making effective loan rate only 6.5%). Once your income crosses ₹24L and 80E benefit reduces to lower slab, that's the time to aggressively prepay and eliminate the debt. Balance: use 80E to your advantage, then prepay once deduction reduces in value.
Additional concessions:
Girls: 0.50% lower at most PSU banks
IIT/IIM admissions: 0.25–0.50% extra concession at SBI, BOB
With scholarship: 0.50% concession at some banks
Repayment within 5 years (vs 7): Some banks offer 0.25% off
Yes — Section 80E provides 100% deduction on education loan interest, no upper limit.
Key rules:
Available for: 8 years from first year of repayment
Who can claim: Borrower OR parent/guardian who is the co-borrower repaying
Eligible courses: Any higher education after Class 12 at recognised institution (India or abroad)
Tax regime: Old Tax Regime only (not available under New Regime)
Large abroad loan (₹60L, 9.5%, Year 1 interest ~₹5.7L):
30% slab: ₹5.7L × 31.2% = ₹1,77,840 tax saved in Year 1 alone
Effective post-tax rate: 9.5% × (1 − 31.2%) = 6.54% — making education loan one of the cheapest effective borrowing costs in India after tax.
Collateral requirement under IBA model scheme:
Up to ₹4 lakh: No collateral, no margin
₹4L to ₹7.5L: Collateral not required; co-borrower essential; 5% margin (India) / 15% margin (abroad)
Above ₹7.5L: Tangible collateral required (property, FD, LIC policy, government bonds)
Maximum limits by bank:
SBI: India ₹10L (IBA) to ₹50L (merit-based premier institution); Abroad up to ₹3Cr
BOB Scholar (abroad): Up to ₹1.5Cr
HDFC Credila / Avanse: Full cost of education (₹3–5Cr for US)
Collateral types accepted:
Residential/commercial property (most preferred)
Fixed Deposit (90% of FD value as loan)
LIC policy (surrender value based)
NSC / KVP (government bonds)
NBFCs may accept overseas property and shares too
Without collateral strategy:
If loan needed > ₹7.5L but no collateral available: Co-borrower with strong ITR can sometimes substitute collateral at PSU banks for premier institution admissions. Or opt for HDFC Credila/Avanse which have more flexible collateral norms.
PSU Bank (SBI, BOB, Union Bank):
✅ Rate: 8.15–11.5% — significantly lower
✅ Govt recognised — reliable for visa documentation
✅ IBA model scheme — standardised, no hidden fees
✅ Girls concession, scholarship concession available
❌ Slower processing (3–6 weeks)
❌ May not fund 100% cost (living expenses, travel may be excluded)
❌ Strict institution list for best rates
NBFC (HDFC Credila, Avanse, InCred):
✅ Faster (1–2 weeks approval)
✅ 100% cost funding including living, travel, health insurance
✅ Flexible collateral (overseas property, shares)
✅ Wider institution and course coverage
❌ Rate: 9.5–15% — higher
❌ No girls concession or merit concession
Optimal strategy:
Apply to PSU bank first → get maximum sanction at 8.15–8.85% → fill remaining gap with NBFC at their higher rate. This blended approach gives you the lowest weighted average rate possible.
Covered under IBA model scheme (PSU banks):
✅ Tuition fees and examination fees
✅ Hostel charges (actual) or mess charges
✅ Laboratory and library fees
✅ Caution deposit / refundable deposits
✅ Cost of books, equipment, instruments, uniforms
✅ Two-wheeler purchase (if required for course)
✅ Computer / laptop (if required for course)
✅ Travel for abroad studies (one-time economy airfare)
✅ Insurance premium for the student
Additional expenses covered by NBFCs (not always PSU):
✅ Living expenses (rent, food) for abroad
✅ Study tours or project costs
✅ GRE/GMAT/IELTS/TOEFL coaching and fees
✅ Laptop regardless of course requirement
✅ Health insurance for full course duration
✅ Cost of visa and travel documentation
Not covered by any lender:
❌ Personal expenses / luxury items
❌ Entertainment or recreational costs
❌ Pre-course expenses (before admission confirmation)
🏫 Get the Best Education Loan Rate + Moratorium Strategy
Education loan is often the largest financial decision a student makes — choosing the right bank, rate, and moratorium strategy can save ₹5–20 lakh over the loan tenure. Vikash Royal will compare PSU bank vs NBFC options for your institution and course, help you structure the moratorium interest payment plan, and maximise your Section 80E tax saving post-graduation. SEBI-Registered. ARN: ARN-356458
