Education Loan Interest Calculator — Know Your Total Repayment
Calculate total interest payable on education loans in India. Compare interest rates across banks for domestic and international studies and find the cheapest option in 2026.
Education loans in India typically range from Rs 5 lakh for domestic courses to Rs 1 crore or more for studies at top international universities. Interest rates vary from 8% to 14% depending on the bank course and collateral. The unique feature of education loans is the moratorium period where you do not pay EMI during the study period plus 6-12 months after course completion. However interest accrues during this period and gets added to your principal making the total repayment significantly higher than you might expect.
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Key Information
| Parameter | Details |
|---|---|
| Interest Rate Range | 8% - 14% per annum |
| SBI Education Loan Rate | 8.15% onwards |
| Moratorium Period | Course + 6-12 months |
| Section 80E Tax Benefit | Full interest deduction (no limit) |
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Use Calculator NowFrequently Asked Questions
How much interest will I pay on a 20 lakh education loan?
On a Rs 20 lakh education loan at 10% interest with a 2 year moratorium period and 7 year repayment tenure you would pay approximately Rs 11.5 lakh in total interest. The moratorium adds about Rs 4.2 lakh to your principal as accumulated interest. Your effective loan becomes Rs 24.2 lakh before repayment begins. This is why shorter courses and faster repayment save significant money on education loans.
Can I deduct education loan interest from taxes?
Yes Section 80E allows you to deduct the entire interest portion of education loan EMI from your taxable income with no upper limit. This deduction is available for 8 years from when you start repaying or until the interest is fully repaid whichever is earlier. Only the interest component qualifies not the principal. This deduction can save Rs 30000-80000 in taxes annually depending on your tax bracket and loan size.
Should I take an education loan or use savings?
Taking an education loan even if you have savings can be financially smart for several reasons. The Section 80E tax deduction effectively reduces the interest cost by 20-30% depending on your tax bracket. You keep your savings invested where they can earn returns. Education loans also help students build credit history. However if the course has uncertain job prospects or the interest rate is very high using savings reduces financial risk.
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Last updated: 24 March 2026