Education loan & EMI planner
Work out what your degree will actually cost once interest is included — how much you need to borrow, what builds up while you study, the EMI you will pay afterwards, and whether that EMI fits the salary you expect.
Your numbers
Faster sanction on the strength of your admit and a co-applicant's income. Capped loan amounts.
Tuition, living costs, flights, visa
Lender margin needs at least ₹4,00,000
Ask for the effective rate, not the headline one
Maximum 12 years for this loan type
12 for a UK masters, 24 for most US degrees
Usually 6 to 12 months
Interest is added to the loan during the moratorium, so your EMI and total cost rise.
Use a conservative figure in rupees
Your repayment
- Loan needed
- ₹32,00,000
- Processing fee
- ₹32,000
- Interest during study
- ₹5,52,000
- Pay while studying
- Nothing
- EMI after the moratorium
- ₹52,751
- Total you repay
- ₹63,30,169
- Total interest paid
- ₹31,30,169
- EMI as share of salary
- 21%
Comfortable
Your EMI stays under 30% of take-home pay, which leaves room for rent and savings.
Repayment starts 30 months after your first disbursement.
Same cost, different lenders
| Loan type | Rate | EMI | Total repaid |
|---|---|---|---|
| Public bank, with collateral | 9.5% | ₹47,308 | ₹56,76,930 |
| Private bank, no collateral | 11.5% | ₹52,751 | ₹63,30,169 |
| NBFC, no collateral | 12.75% | ₹56,357 | ₹67,62,784 |
| International lender (no co-signer) | 13.5% | ₹58,595 | ₹70,31,418 |
Rates are typical ranges, not quotes. Two banks can differ by 2% on the same profile, so always apply to more than one.
Year by year
| Year | Principal repaid | Interest paid | Balance left |
|---|---|---|---|
| 1 | ₹2,12,506 | ₹4,20,511 | ₹35,39,494 |
| 2 | ₹2,38,275 | ₹3,94,742 | ₹33,01,219 |
| 3 | ₹2,67,168 | ₹3,65,849 | ₹30,34,051 |
| 4 | ₹2,99,564 | ₹3,33,453 | ₹27,34,487 |
| 5 | ₹3,35,889 | ₹2,97,128 | ₹23,98,597 |
| 6 | ₹3,76,619 | ₹2,56,398 | ₹20,21,978 |
| 7 | ₹4,22,288 | ₹2,10,729 | ₹15,99,691 |
| 8 | ₹4,73,494 | ₹1,59,523 | ₹11,26,197 |
| 9 | ₹5,30,910 | ₹1,02,107 | ₹5,95,287 |
| 10 | ₹5,95,287 | ₹37,730 | ₹0 |
Early years are mostly interest. Prepaying in the first three years saves far more than prepaying later, and education loans in India carry no prepayment penalty.
Common questions
How much education loan can I get to study abroad?
Loans backed by property or a fixed deposit commonly run to ₹1.5 crore, while a no-collateral loan from a private bank or NBFC usually tops out between ₹40 lakh and ₹75 lakh depending on your co-applicant's income and the university.
What is a moratorium period and does it cost extra?
The moratorium covers your course plus a grace period of 6 to 12 months after it ends. If you pay nothing during it, the interest is added to your loan, which raises both your EMI and the total you repay. Paying just the simple interest each month avoids that.
What interest rate should I expect on an education loan?
Roughly 8.5-10.5% with collateral from a public bank, 10.5-12.5% for a no-collateral private bank loan, and 12-14% from an NBFC or an international lender that needs no co-signer.
How much EMI is safe on a starting salary?
Keep the EMI under about 30% of your take-home pay. Above 45% you will struggle to cover rent, living costs and any currency risk if you are repaying in rupees from a foreign salary.
Do education loans give tax benefits in India?
Section 80E lets you deduct the full interest paid on an education loan from taxable income for up to 8 years. Only the interest qualifies, not the principal.