Education Loan: A Complete Guide
An education loan bridges the gap between your aspirations and your savings. Whether you're heading to a top IIT or planning to study abroad, a structured education loan makes it possible.
What Does It Cover?
- Tuition and admission fees
- Hostel and living expenses
- Books, laptops, and study materials
- Travel costs for overseas studies
Moratorium Period
Most education loans offer a moratorium — a grace period during which you do not pay EMIs. This typically lasts for the course duration plus 6–12 months, giving you time to find a job after graduation.
Repayment Options
Repayment usually begins after the moratorium ends. Tenures range from 5 to 15 years. Some lenders allow partial prepayment without penalty, which can significantly reduce total interest paid.
Tax Benefit
Under Section 80E of the Income Tax Act, the interest paid on education loans is fully deductible from your taxable income — with no upper limit — for up to 8 years.
Invest in your education today. The returns are lifelong.