📐 Formula Used
After moratorium, loan balance = P × (1 + r/12)^moratorium_months EMI = [Balance × r/12 × (1+r/12)^n] / [(1+r/12)^n – 1]
Frequently Asked Questions
What is the moratorium period in education loans?
The moratorium period is the time after course completion (usually course duration + 1 year) during which no repayment is required. Interest may or may not accrue.
What is the education loan interest rate?
Education loan rates typically range from 8% to 13% p.a. Government schemes like Padho Pardesh offer subsidized rates.
Is education loan interest tax-deductible?
Yes. Under Section 80E, the interest paid on education loans is fully deductible from taxable income for up to 8 years starting from the year repayment begins.
What is the maximum education loan amount?
Bank limits vary: ₹10L for studies in India, up to ₹20L or more for abroad. Collateral is typically required for loans above ₹7.5L.