What a education loan looks like
Moratorium
Course duration plus 6–12 months before EMIs begin
Collateral
Not required up to ₹7.5 lakh under the CGFSEL guarantee
Tax benefit
Entire interest deductible under 80E for 8 years, no cap
Concessions
Rate reductions for female students and for servicing interest during the course
Eligibility
- Indian national with a confirmed admission to a recognised institution
- Co-applicant — parent, guardian or spouse — with income
- Collateral for loans above ₹7.5 lakh
- Satisfactory academic record
Documents required
- Admission letter and fee structure
- Academic records — 10th, 12th and graduation
- KYC and income proof of the co-applicant
- Collateral documents where applicable
Frequently asked questions
If you can, yes. It stops interest being capitalised into the principal and most lenders give a 0.5–1% rate concession for servicing it. On a ₹20 lakh loan the saving runs into lakhs.
Not for loans up to ₹7.5 lakh, which are covered by the CGFSEL guarantee scheme. Above that, banks generally require tangible security.
Education Loan calculators
Run the numbers before you speak to a lender — it is the difference between negotiating and accepting.
Know your number before you apply
Check eligibility and EMI here first. A formal application leaves a hard enquiry on your credit file — these calculators do not.