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Calculate EMI, check eligibility, explore tax benefits under Section 80E, and plan your education financing with comprehensive analysis
Course duration + 6 months grace period
An education loan calculator is a comprehensive financial planning tool designed to help students and parents estimate the complete cost of education financing. It calculates monthly EMI payments, total interest costs, eligibility based on income and credit score, tax benefits under Section 80E, and provides detailed amortization schedules for the entire loan tenure.
Our advanced calculator includes features like moratorium period calculation, prepayment analysis, lender comparison, eligibility checker, margin money calculation, and tax benefit optimization. It helps you make informed decisions about financing your education by providing complete transparency on costs, repayment obligations, and potential savings.
Select your course type (Undergraduate, MBA, Medical, etc.) and country. Enter tuition fees, living expenses, books, and other costs. Add any scholarships or parent contributions to calculate the actual loan amount needed.
Choose your lender type (Public Bank, Private Bank, NBFC, etc.) which auto-fills interest rates. Set the repayment tenure and moratorium period (course duration + grace period). Select simple or compound interest for the moratorium period.
Enter your monthly income, co-applicant income, existing EMIs, and credit score. The calculator will compute your FOIR (Fixed Obligation to Income Ratio) and determine your maximum eligible EMI. Add your expected post-study salary to see future affordability.
Use advanced options to plan prepayments, enable step-up EMI for career growth, calculate tax benefits under Section 80E, compare different lenders, and view detailed amortization schedules. Download the schedule as CSV for further analysis.
Pre-configured settings for Undergraduate, MBA, Medical, Engineering, PhD, and more with typical cost ranges.
Calculate Section 80E deductions with no upper limit for up to 8 years. See year-wise tax savings and effective interest rate.
Calculate interest accumulation during study period with simple or compound interest options and grace period.
Real-time eligibility assessment based on income, credit score, FOIR ratio, and existing obligations.
See how yearly or one-time prepayments can save thousands in interest and reduce loan tenure significantly.
Compare Public Banks, Private Banks, NBFCs, International Lenders, and Government Schemes with different rates.
Plan gradually increasing EMI payments aligned with your career growth and salary increments.
Different interest rates for India, USA, UK, Canada, Australia, and Germany based on study destination.
Your education loan amount is calculated as: Total Education Cost - (Scholarships + Parent Contribution + Margin Money). The total cost includes tuition fees, living expenses, books, supplies, travel, and other educational expenses. Margin money (typically 5-15%) is your upfront contribution that reduces the loan amount.
Education loan interest rates vary based on lender type, loan amount, credit score, and study destination. Government schemes offer the lowest rates (7.5%), while NBFCs charge higher rates (11.5%). Your credit score and co-borrower's financial profile significantly impact the rate offered. International education loans typically have different rate structures.
During the moratorium period (course duration + 6-12 months), you don't make EMI payments, but interest accumulates. This can be simple interest (calculated only on principal) or compound interest (calculated on principal + accumulated interest). The accumulated interest is added to your principal, increasing your total loan amount and subsequent EMI.
Your combined monthly income (applicant + co-borrower) should be sufficient to maintain a FOIR below 50%. For a $100,000 loan at 10% for 10 years (EMI ~$1,322), you need a minimum monthly income of $2,644. Higher income improves eligibility for larger loan amounts.
A credit score of 750+ ensures best interest rates and quick approval. Scores between 650-750 may get approval with higher rates. Below 650, approval becomes challenging. Since students typically lack credit history, the co-borrower's score is crucial.
For loans up to $10,000, no collateral is required. For loans between $10,000-20,000, third-party guarantee may be needed. For loans above $20,000, tangible collateral (property, fixed deposits, etc.) is typically required. Study abroad loans often have different collateral norms.
The course must be from a recognized university or institution. Professional courses (MBA, Medical, Engineering) and study abroad programs are generally preferred. The institution should be on the lender's approved list. Admission confirmation is mandatory before loan approval.
Actively seek merit-based and need-based scholarships to reduce your loan amount. Even small scholarships can significantly lower your total interest burden.
If possible, pay the interest during the moratorium period to prevent it from compounding and increasing your principal amount.
Don't settle for the first offer. Compare rates, processing fees, and terms from at least 3-4 lenders to get the best deal.
Ensure your co-borrower maintains a credit score above 750 for best interest rates and quick approval.
Use bonuses, increments, or part-time income to make prepayments. Even small amounts can save thousands in interest.
Don't forget to claim Section 80E deductions on your interest payments to reduce your effective interest cost.
If affordable, opt for a shorter tenure to save significantly on total interest, even if monthly EMI is higher.
Explore part-time work opportunities during studies to contribute towards loan repayment or living expenses.
An education loan calculator helps students and parents estimate monthly EMI payments, total interest costs, eligibility, and tax benefits for education financing. It considers tuition fees, living expenses, interest rates, moratorium period, and repayment tenure to provide accurate loan planning and cost projections.
Education loan EMI is calculated using the formula: EMI = P à r à (1 + r)^n / ((1 + r)^n - 1), where P is the principal loan amount (after deducting scholarships and contributions), r is the monthly interest rate, and n is the number of monthly payments. The calculator also factors in moratorium period interest accumulation.
The moratorium period is the time during which you don't have to repay the loan - typically the course duration plus 6-12 months after completion. During this period, interest accrues on the loan amount, which can be calculated as simple or compound interest depending on the lender's policy.
Under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid on education loans for up to 8 years. There is no upper limit on the deduction amount. This benefit is available for loans taken for higher education (after Class 12) for yourself, spouse, children, or a student for whom you are a legal guardian.
Education loan eligibility depends on factors like course cost, co-borrower income, credit score, and existing obligations. For loans up to $10,000, no collateral is required. For higher amounts, collateral may be needed. Your FOIR (Fixed Obligation to Income Ratio) should ideally be below 50% for approval.
Margin money is the student's contribution towards the total education cost, typically 5-15% of the total expenses. For example, if your total cost is $100,000 and margin money is 10%, you need to contribute $10,000 upfront, and the lender will finance the remaining $90,000.
Yes, most education loans allow prepayment without penalties. Making prepayments can significantly reduce your total interest burden and loan tenure. You can make yearly prepayments or one-time lump sum payments. Even small prepayments during the moratorium period can lead to substantial savings.
Required documents include: admission letter from the institution, academic records, income proof of co-borrower, identity and address proof, bank statements (6 months), cost breakdown from institution, collateral documents (for loans > $10,000), and passport/visa for study abroad programs.
Government schemes typically offer the lowest rates (7.5%), followed by international lenders (8%), public sector banks (9.5%), private banks (10.5%), and NBFCs (11.5%). However, the best option depends on your specific situation, credit profile, and loan amount. Compare processing fees, insurance costs, and prepayment terms along with interest rates.
FOIR (Fixed Obligation to Income Ratio) is the percentage of your monthly income that goes towards loan repayments. Lenders typically prefer FOIR below 50%. It's calculated as (Total Monthly EMIs / Total Monthly Income) Ã 100. A lower FOIR increases your loan eligibility and approval chances.
Most education loans require a co-borrower (usually a parent or guardian) who has a stable income source. However, some lenders offer loans to working professionals pursuing higher education without a co-borrower, subject to income and credit score requirements.
A credit score of 750+ is recommended for best interest rates and quick approval. Scores between 650-750 may get approval with slightly higher rates. Below 650, approval becomes difficult. Since most students don't have a credit history, the co-borrower's credit score becomes crucial for loan approval.
Our education loan calculator is based on guidelines and information from authoritative financial institutions and government bodies:
Our calculator provides comprehensive features for complete education loan planning:
Most calculators ignore tax benefits. We provide detailed Section 80E calculations with year-wise breakdown, showing exact tax savings and effective interest rate after tax benefits. This can save you lakhs over 8 years.
Unlike basic calculators, we provide instant eligibility assessment with FOIR calculation, credit score impact analysis, and maximum eligible EMI computation. Know if you qualify before applying.
We calculate interest accumulation during study period with both simple and compound interest options. See exactly how much your loan will grow during the moratorium period.
Pre-configured settings for different courses (MBA, Medical, Engineering) and countries (USA, UK, Canada) with realistic cost estimates and appropriate interest rates.
Test yearly or one-time prepayments with flexible start dates. See exactly how much interest you'll save and how many years you'll reduce from your loan tenure.
Unique feature to plan gradually increasing EMI aligned with career growth. Start with lower EMI and increase it annually as your salary grows.
Compare Public Banks, Private Banks, NBFCs, International Lenders, and Government Schemes with different interest rates, processing fees, and insurance costs in one place.
Enter expected post-study salary to see EMI as percentage of future income and disposable income after EMI payment. Plan your career and finances together.
Detailed breakdown of tuition, living expenses, books, margin money, processing fees, insurance fees, and moratorium interest. Know every rupee you'll spend.