MoneyRadar

Loans & credit

Education loan

A loan to fund studies, often with a repayment holiday until after the course ends.

An education loan covers tuition and related costs, in India or abroad, and usually lets you delay repayment via a moratorium.

Interest on education loans is fully tax-deductible under Section 80E for up to 8 years.

The moratorium is convenient, but interest builds during study, so paying at least the interest while studying keeps the loan smaller.

For example

A ₹20L education loan for a master's abroad may let you skip EMIs until you graduate, but the accrued interest inflates the balance.

Related terms