Your education loan, explained.

Education loan · Sahyadri Bank Ltd · ••••6644

Illustrative

Education loan · India · Bank

Sanction15 Jun

EMI

₹11,330

84 months from 1 Jul 2025

Owed now

₹6,00,400

per the latest statement

Tax deduction

₹82,337

tax saved at 30%, est.

Rate a year

9.75%

fixed

An education loan of ₹6,00,000 from Sahyadri Bank Ltd at 9.75% a year, for study in India. Interest built up while studying (about ₹87,830) and was added to the loan; EMIs started on 1 Jul 2025 and run 84 months. The interest is tax-deductible for 8 years under the old regime.

Myra's most important observations

Prefilled from your loan · edit freely

Tax on the interest: the 8-year deduction

Prefilled from Calculated by Myra

Tax saved over 8 years

₹82,337

at 30% with cess, estimate

Interest deductible

₹2,63,902

FY 2025-26 to FY 2032-33

FY 2025-26₹15,159

FY 2026-27₹18,238

FY 2027-28₹15,772

FY 2028-29₹13,055

FY 2029-30₹10,060

FY 2030-31₹6,760

FY 2031-32₹3,124

FY 2032-33₹170

Assumptions & limits. Interest on an education loan is deductible in full for 8 years from the year you start paying interest (section 80E), under the old regime only, by the person who took the loan and pays it from income taxed in India. Each year's interest is from the reducing balance. Tax saved is at the slab you choose with 4% cess; the real figure depends on your total income and deductions, and whether the old regime suits you overall.