This calculator provides estimates based on the information you provide. The actual loan terms, interest rates, and fees may vary based on your academic profile, course, institution, and the lender's policies. Please consult with your bank or financial institution for exact loan terms and conditions.
EMI Calculation Formula
The EMI (Equated Monthly Installment) is calculated using the following formula:
Use the slider or type the amount you want to borrow (₹1,00,000 to ₹1,00,00,000)
2
Set Interest Rate
Enter the annual interest rate offered by your lender (typically 7% to 20%)
3
Choose Loan Tenure
Select the repayment period in years or months (1 to 10 years)
4
Add Processing Fee
Include any upfront processing fees (usually 0% to 1% of loan amount)
Sample Calculation Example
Let's calculate EMI for a ₹10,00,000 education loan:
Loan Amount:₹10,00,000
Interest Rate:9.5% per annum
Loan Tenure:7 years (84 months)
Processing Fee:0% (₹0)
Monthly EMI:₹16,196
Total Interest:₹3,60,464
Total Payment:₹13,60,464
Frequently Asked Questions (FAQs) for Education Loan
An education loan is a specialized loan designed to finance higher education expenses including tuition fees, accommodation, books, and other related costs. It can be used for studies in India or abroad and typically offers flexible repayment options.
Eligibility criteria include: Indian citizenship, admission to a recognized institution, good academic record, co-applicant (parent/guardian), and no existing loan defaults. Some lenders have minimum academic score requirements.
Required documents include: Identity proof, address proof, admission letter, fee structure, academic records, co-applicant documents, and income proof. Additional documents may be needed for course and institution verification.
Education loan interest rates in India typically range from 7% to 20% per annum, depending on the course, institution, and lender. Government schemes may offer lower rates for specific courses and institutions.
Loan amounts usually range from ₹1,00,000 to ₹1,00,00,000, depending on the course, institution, and repayment capacity. Most lenders offer up to 100% of the course fees, with some covering additional expenses.
Processing fees typically range from 0% to 1% of the loan amount, with a minimum of ₹500 to ₹10,000. Some lenders offer zero processing fee for education loans, especially for premier institutions.
Most education loans offer a moratorium period (course duration + 6-12 months) during which you don't need to pay EMIs. Interest may be charged during this period and added to the principal amount.
Most lenders require a co-applicant (parent/guardian) for education loans, especially for large amounts. Some lenders may offer loans without co-applicants for smaller amounts or specific courses.
Eligible courses include: Engineering, Medicine, Management, Arts, Science, Law, and other professional courses. Some lenders also finance vocational courses, skill development programs, and certification courses.
Yes, most lenders offer education loans for international studies. These loans typically have higher limits, different documentation requirements, and may include additional charges for currency conversion and international transfers.
Education loan borrowers can claim tax deductions under Section 80E for interest payments (no limit) and under Section 80C for principal repayment (up to ₹1.5 lakh). These benefits are available for 8 years from the start of repayment.
If you don't complete your course, you may still be liable to repay the loan. Some lenders offer course completion insurance or may restructure the loan. It's important to inform your lender about any changes in your academic plans.