Education Loan EMI Calculator

What is the moratorium period in an education loan?

The moratorium period is the grace period during which you don't need to repay the loan EMI. For education loans, this is typically the course duration plus 6–12 months after course completion (or 6 months after getting a job, whichever is earlier). Interest may still accrue during this period.

Is interest compounded during the moratorium?

Most Indian banks compound interest during the moratorium (interest-on-interest). This significantly increases the effective principal at the start of repayment. Paying simple interest during the study period (if the bank allows) can save lakhs in total repayment.

What is the Sec 80E tax benefit on education loans?

Section 80E allows a deduction on the interest paid on an education loan for any amount — there is no upper limit. This deduction is available for 8 consecutive years from the year you start repayment. Only the interest component (not principal) qualifies. This makes education loans very tax-efficient.

What is the Vidya Lakshmi portal?

Vidya Lakshmi is the Government of India's single-window portal for applying for education loans across multiple banks. You can compare loan schemes from over 40 banks and apply to multiple banks through one application. Visit vidyalakshmi.co.in to apply.

What is CGFSEL scheme for education loans?

Credit Guarantee Fund Scheme for Education Loans (CGFSEL) provides government credit guarantee for education loans up to ₹7.5 lakh without collateral or third-party guarantee. This makes higher education accessible to meritorious students from economically weaker sections.