About the Education Loan Calculator
An education loan usually comes with a moratorium (the course period plus a grace period) before full EMIs begin, which makes it different to plan for than a regular loan. This calculator works out your EMI, total interest and total repayment once the moratorium ends, so a student and their family know what to expect before committing to a course.
Who should use this calculator
Students and parents planning higher education in India or abroad, families comparing loan offers from different banks and NBFCs, and anyone wanting to understand how interest accrued during the moratorium affects the EMI once repayment starts.
Education loan interest rates in India
Education loan rates in India typically range from about 8% to 15% per year, depending on the institution, the course, whether collateral is offered, and the co-applicant's income. Loans for recognised institutions and government-backed scheme loans are often priced lower than unsecured education finance from NBFCs. Interest usually continues to accrue during the moratorium, so the balance you start repaying can be higher than the amount originally disbursed.
Documents required for an education loan
- PAN card and identity/address proof of the student and co-applicant
- Admission letter from the institution
- Fee structure and cost estimate from the institution
- Academic records of the student
- Co-applicant's income documents (usually a parent or guardian)
- Collateral documents, for larger loan amounts
Tips to get your education loan approved faster
- Apply early, ideally as soon as the admission letter is in hand, education loans can take longer to process than other retail loans.
- Check whether interest is serviced during the moratorium. Paying just the interest during the course, if you can, keeps the final EMI much lower.
- Compare government scheme loans against private options, subsidised interest schemes exist for certain income groups and courses.
- Understand the collateral threshold, many lenders waive collateral up to a certain loan amount, especially for premier institutions.
Planning an education loan for this year or next? A Kaithi Finance loan expert can walk you through the moratorium and repayment options on WhatsApp, free of charge.
Education loan interest rates in India (September 2026)
Education loans carry a moratorium (course duration plus 6–12 months) during which you usually pay nothing or interest only. Interest still accrues through it, so the EMI below applies to the balance after the moratorium, not the amount originally sanctioned.
| Lender type | Typical rate (p.a.) | Typical max tenure | Best suited to |
|---|---|---|---|
| Public sector banks (India study) | 8.50% – 11.00% | 15 years | Collateral-free up to ₹7.5 lakh |
| Public sector banks (abroad) | 9.00% – 11.50% | 15 years | Usually needs collateral above ₹7.5 lakh |
| Private banks | 10.50% – 13.50% | 15 years | Faster sanction, higher limits |
| NBFCs | 11.00% – 15.00% | 10–12 years | No-collateral abroad, premium institutions |
Indicative ranges as of September 2026, compiled from publicly advertised lender pricing. Rates are personalised to your credit score, income and loan-to-value, and change without notice. Always confirm the current rate, spread and reset frequency in your lender's Key Fact Statement before signing.
Education loan EMI per ₹1 lakh
Multiply the figure below by your loan amount in lakhs to get a quick EMI estimate, a ₹25 lakh loan is simply 25 × the per-lakh EMI. Use the calculator above for the exact figure including processing fees.
| Rate (p.a.) | 5 yr | 7 yr | 10 yr | 15 yr |
|---|---|---|---|---|
| 9% | ₹2,076 | ₹1,609 | ₹1,267 | ₹1,014 |
| 10% | ₹2,125 | ₹1,660 | ₹1,322 | ₹1,075 |
| 11% | ₹2,174 | ₹1,712 | ₹1,378 | ₹1,137 |
| 12% | ₹2,224 | ₹1,765 | ₹1,435 | ₹1,200 |
| 13% | ₹2,275 | ₹1,819 | ₹1,493 | ₹1,265 |
Before you apply, worth checking
- what your co-applicant can support, education loans are assessed on the co-applicant's income.
- what paying interest during the moratorium saves, often a six-figure sum on an overseas loan.
- a loan against property, a common alternative for large overseas fees when collateral is required anyway.
Frequently asked questions
What is a good interest rate for an education loan in India?
Education loan rates in India typically range from about 8% to 15% per year, depending on the institution, the course and whether collateral is offered. Government-backed scheme loans and loans for premier institutions are often priced lower.
Do I have to pay EMI while I am still studying?
Most education loans offer a moratorium (the course period plus a grace period) during which full EMIs are not required. Interest usually still accrues during this time unless you choose to service it, so paying the interest during the course keeps your final EMI lower.
Can Kaithi Finance help compare education loan offers?
Yes. Message us on WhatsApp with the course details and we will help you compare offers, including scheme-linked options that may not be obvious from a bank's standard product page.
How does the moratorium period work on an education loan?
The moratorium covers the course duration plus a further 6–12 months. During it you either pay nothing or interest only. Interest accrues throughout either way, so if you pay nothing, that accrued interest is capitalised and your EMI afterwards is calculated on a larger balance than you originally borrowed.
Should I pay simple interest during the moratorium?
If you can afford it, yes. Servicing interest during the moratorium stops it capitalising, which reduces both your eventual EMI and your total cost, often by a six-figure sum on a large overseas loan. Many lenders also offer a 0.5–1% rate concession for doing so.
Do I need collateral for an education loan?
Under the model education loan scheme, loans up to ₹4 lakh need no collateral or guarantor; ₹4–7.5 lakh needs a third-party guarantee; above ₹7.5 lakh usually requires tangible collateral. NBFCs offer collateral-free loans at higher amounts but price them several points higher.
Can I claim tax benefit on an education loan?
Under Section 80E, the entire interest paid on an education loan is deductible from taxable income for up to 8 years from when repayment starts, with no upper cap on the amount, but only under the old tax regime. There is no deduction on the principal.
What happens if I cannot find a job after the moratorium?
Speak to the lender before the first EMI is missed. Most will consider extending the moratorium or restructuring the tenure, and education loans are covered by the Credit Guarantee Fund Scheme for loans up to ₹7.5 lakh. Missing EMIs silently damages both your score and your guarantor's.