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Canara Bank Education Loan Calculator

With an education loan you usually pay nothing during the course, but interest keeps building. Enter the loan, the rate, the course length and the repayment term to see what you will really owe and your EMI.

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Good to know

Independent calculator, not made or approved by Canara Bank. It assumes the full loan is paid out on day one and simple interest during the course. Real schedules, subsidies and rates differ by bank, so check your own sanction letter.

What it does

  • Interest during the course and the grace period
  • Balance when repayment starts
  • Monthly EMI in rupees
  • Choose to pay interest as you study or add it to the loan

How to use it

  1. Enter the loan amount and the interest rate.
  2. Enter the course length, the extra months before repayment and the repayment years.
  3. Tick the box if you will pay the interest during the course, then read the EMI.

How does an education loan work?

Most education loans have a moratorium: the course period plus a grace period, often 6 to 12 months after you finish. You do not pay EMIs in this time, but simple interest builds up. If you do not pay it, it is usually added to the loan, so you start repaying a bigger amount. The calculator assumes the whole loan is taken at the start, which is the cautious case.

Real loans are paid out in parts, so your actual interest during the course can be lower. Some banks give an interest concession to girl students or for loans up to a limit, and the rules differ by bank. If you pay the simple interest every month during the course, the loan stays at its original size and the EMI is smaller.

Example

A ₹10,00,000 loan at 9.5% for a 4-year course with 6 months of grace builds about ₹4,27,500 of interest. If it is added, repayment starts at ₹14,27,500. Over 7 years the EMI is about ₹23,331.

Questions people ask

Is this calculator from Canara Bank?
No. It is an independent tool. Your sanction letter and the bank's schedule are the final word.
What is a moratorium?
It is the period with no EMIs, usually your course plus a grace period. Interest still builds in this time.
Is the interest tax deductible?
Under the old tax regime, interest on an education loan can be deducted under section 80E for up to 8 years. Check the current rules for your case.

Disclaimer

This tool is for general information only. It is not financial, tax, investment or legal advice, and results are estimates that may differ from your bank, lender or tax authority. Rates, limits and tax rules change. Bank and brand names are used only to describe what the tool does; they belong to their owners and we are not affiliated with them. Check the figures with a qualified professional or your provider before you decide. You use this tool at your own risk, and TheFreeTool is not liable for any loss that follows. Read the full disclaimer

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