Education Loan EMI CalculatorCalculate EMI, moratorium impact & tax benefits

An Education Loan is a financial product designed to help students pursue higher education in India or abroad. Unlike other loans, it comes with a unique feature called the Moratorium Period (or Repayment Holiday), where the student is not required to pay EMIs during the course duration.

Education loans cover tuition fees, hostel charges, exam fees, and even equipment costs like laptops. They are available for both domestic and international studies.

• Student: Must be an Indian citizen, aged 18-35, with confirmed admission.
• Co-Applicant: A parent, guardian, or spouse with a stable income is mandatory.
• Academic Record: Good grades (10th, 12th, Graduation) help in faster approval.
• Collateral:
  • Up to ₹4 Lakhs: No Collateral.
  • ₹4 Lakhs to ₹7.5 Lakhs: Third-party Guarantor required.
  • Above ₹7.5 Lakhs: Tangible Collateral (Property/FD) required.

Education Loans offer the best tax benefits among all loan types. Under Section 80E of the Income Tax Act, you can claim a deduction on the entire interest amount paid.

• Limit: No upper limit on the deduction amount (unlike 80C).
• Duration: Available for up to 8 years or until interest is fully repaid.
• Eligibility: Only available to the individual who took the loan (Student or Parent/Legal Guardian).

Most calculators fail to account for the interest that accrues while you are studying. Fincado’s calculator adds this Moratorium Interest to your principal so you see your true EMI after repayment begins.