Education Loan | ThinkMoney

Theo

● Education Loan Expert

🎓 Hi! I'm Theo, your education loan expert.

Ask me about rates for IIT/IIM/abroad studies, moratorium periods, tax benefits, or which lender suits your course.

🎓 Education Loan — Expert Guidance

From 6.60% for premium courses. No repayment during study. Full interest deduction under Section 80E.

6.60%Starting Rate

₹40 LMax Loan

No limit80E Deduction

✅ No Repayment During Study

💰 Full Interest Tax Deduction

🎓 No Collateral up to ₹7.5L

Compare Education Loan Rates — 2026

India studies & abroad — all major lenders compared.

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Lender	Interest Rate	Max Loan	Moratorium	Collateral
Canara Vidhya Turant Lowest Rate	6.60% p.a. Lowest	₹40 L	Study + 1 yr	Required above ₹7.5L
PNB Pratibha (IIT/IIM) IIT/IIM Special	8.45% p.a.	₹20 L	Study + 1 yr	No (up to ₹7.5L)
Bank of Baroda	8.50% p.a.	₹20 L	Study + 6 mo	No (up to ₹7.5L)
Indian Bank (List A) Medical / Premier	8.60% p.a.	₹20 L	Study + 1 yr	No (up to ₹7.5L)
SBI Scholar	10.25–10.50% p.a.	₹20 L	Study + 1 yr	No (up to ₹7.5L)
HDFC Credila Private	9–13.86% p.a.	₹20 L	Study + 6 mo	Varies
Avanse (Abroad) Study Abroad	10–16.50% p.a.	₹40 L	Study + 1 yr	Varies
Credila (Abroad) Study Abroad	11.85% p.a.	₹40 L	Study + 1 yr	Varies

* 0.5% rate concession for girl students at most PSU banks. 100% finance up to ₹4L — no margin money. Updated March 2026.

Education Loan EMI Calculator

Plan your repayment after the moratorium period

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Loan Amount ₹10.0L

Interest Rate 8.50%

Repayment Tenure 10 yrs

Monthly EMI (after moratorium)

₹0

Total Payment

₹0

Total Interest

💡 Section 80E: Full interest deduction (no limit). No repayment during study period + 6–12 months.

About Education Loans

Key Features

Moratorium Period: No repayment during study + 6–12 months after completion
No Collateral: Up to ₹7.5L without security
100% Finance: Up to ₹4L — no margin money needed
Girl Student Discount: 0.5% lower rate at most PSU banks
Insurance Discount: Additional 0.5% off with loan insurance

Eligibility

Applicant	Student (co-applicant: parent/guardian)
Admission	Confirmed admission to recognized institution
Collateral	Not required up to ₹7.5L
Co-applicant	Parent / Spouse / Guardian

Section 80E Tax Benefit

Education loan interest qualifies for 100% deduction under Section 80E — no upper limit. Applicable for 8 years or until interest is fully repaid (whichever is earlier). Only available under the Old Tax Regime.

What's Covered

Tuition & course fees
Hostel & living expenses
Books, lab fees, study material
Travel for study abroad
Laptop / equipment (if course-related)

Best For

IIT/IIM/NIT: PNB Pratibha (8.45%)
Medical colleges: Indian Bank, Canara Bank
Study abroad: Avanse, Credila (HDFC)
General courses: SBI, HDFC, Bank of Baroda

Frequently Asked Questions

No! Education loans have a moratorium period — you don't pay EMIs during your study period plus 6–12 months after completion (or getting a job). This makes education loans very manageable.

Yes, most banks offer loans for recognized private colleges too. HDFC Credila and Avanse specialize in private institution loans. The interest rates may be slightly higher than for government/premier institutions.

Section 80E allows full deduction of education loan interest paid — with no upper limit. If you pay ₹1.5L in interest, your taxable income reduces by ₹1.5L. For someone in the 30% tax bracket, that's ₹45,000 in annual tax savings.

No collateral is required for loans up to ₹7.5L. Above ₹7.5L, banks typically require property or other assets as collateral. For IIT/IIM admissions, PNB offers collateral-free loans up to ₹20L.

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🎓 Education Loan — Expert Guidance

Compare Education Loan Rates — 2026

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Education Loan Comparison

Education Loan EMI Calculator

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About Education Loans

Key Features

Eligibility

Section 80E Tax Benefit

What's Covered

Best For

Frequently Asked Questions

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