What is this Tool?
The Student Loan Calculator helps students and parents understand the full financial commitment of an education loan — including the monthly EMI after the moratorium period, total interest paid, and what percentage of the expected starting salary will go towards loan repayment. Education loans are one of the most common forms of student debt in India, especially for professional courses and foreign education.
Frequently Asked Questions
Q: What is a moratorium period?
A: The moratorium period is the time during which you don't need to make EMI payments — typically the course duration plus 6-12 months after completion. Interest usually accrues during this period.
Q: Which banks offer the best education loan rates in India?
A: SBI Scholar Loan, Canara Bank, Bank of Baroda, and Axis Bank offer competitive rates. Government bank rates are typically lower than private banks. HDFC Credila specialises in education loans.
Q: Is education loan interest tax deductible?
A: Yes. Under Section 80E, the entire interest paid on an education loan is deductible from taxable income for up to 8 years from the year repayment begins. This can significantly reduce your tax liability.
Q: What is the maximum education loan amount?
A: Banks typically offer up to ₹7.5 lakh without collateral. With collateral, loans of ₹20 lakh to ₹1.5 crore are available. Government banks have higher limits for premier institutions.