An education loan calculator helps you estimate your monthly payments and total cost for education loans. By entering the loan amount, interest rate, loan term, and moratorium period, you can instantly calculate your EMI, total interest, and total payment. This tool is essential for planning education financing and understanding loan obligations.
The education loan calculation involves multiple steps:
EMI = P × r × (1 + r)n / ((1 + r)n - 1)
Where:
An education loan is a financial assistance provided to students to pursue higher education in India or abroad.
A moratorium period is a grace period during which the borrower is not required to make EMI payments, usually 6-12 months after course completion.
Education loans typically cover tuition fees, examination fees, library fees, hostel fees, and other course-related expenses.
Yes, interest paid on education loans is eligible for tax deduction under Section 80E without any upper limit.
For studies in India, loans up to ₹ 10 lakh are available without collateral. For abroad studies, loans up to ₹ 20 lakh are available without collateral.
Repayment periods typically range from 5 to 15 years, depending on the lender and loan amount.
Yes, many banks offer education loans for overseas studies with additional benefits like forex services.
Interest rates typically range from 8% to 14% depending on the bank, loan amount, and whether collateral is provided.
For loans above ₹ 7.5 lakh in India and ₹ 15 lakh for abroad studies, collateral security is usually required.
Yes, most lenders allow prepayment of education loans without any penalty after the completion of the moratorium period.