IOB Education Loan EMI Calculator
Pick one of the 5 IOB education loan schemes we read from the bank's own website, or type the rate you are offered. Add the course length and grace period to see the interest that builds up before EMIs start.
Official Rate Formula & Benchmark:
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is what you owe when the moratorium ends and r is the monthly rate.
Current official starting rate: 10.00% p.a. (Range: 10.00% – 10.00% p.a.). Read from IOB's own website; your rate depends on your profile.
Borrowing ₹10,00,000 at 10% with a moratorium of 3 years, ₹3,00,000 of interest is added to the loan before EMIs start. You then owe ₹13,00,000, an EMI of ₹17,180 for 10 years, and ₹10,61,517 in total interest.
Picking a lender fills in its lowest published figure for that scheme. Your rate depends on your profile, course or vehicle, and can be higher. Compare all education loan rates
Indian Overseas Bank · Public sector bank
Vidya Jyothi (India / abroad, general public)
10%
Concession for girl students / women: 0.50%
Effective: 8 Oct 2026 · Last verified 21 Oct 2026 · Lender’s rate page
The amount disbursed. Interest during the moratorium is worked out for you.
Check your sanction letter for the exact repayment holiday.
Interest during the moratorium
Assumption: IOB's rate page we read does not say how it charges interest during the moratorium. If interest compounds monthly instead, the moratorium interest would be ₹3,48,182.
Your tax slab (old regime)
Plus 4% cess. Surcharge is not included.
EMI after moratorium
₹17,180
for 10 years, from month 37
Moratorium interest
₹3,00,000
over 3 years, added to the loan
Owed when EMIs start
₹13,00,000
Total interest
₹10,61,517
₹7,61,517 in EMIs + ₹3,00,000 moratorium
Total payment
₹20,61,517
Est. 80E tax saving
₹2,25,114
old regime, 30% slab + cess, 8 years
Amount borrowed vs interest
- Principal
- 48.5%
- ₹10,00,000
- Total interest
- 51.5%
- ₹10,61,517
Section 80E estimate by year
| Year | Interest paid | Tax saved |
|---|---|---|
| Year 4 | ₹1,26,411 | ₹39,440 |
| Year 5 | ₹1,18,060 | ₹36,835 |
| Year 6 | ₹1,08,834 | ₹33,956 |
| Year 7 | ₹98,643 | ₹30,777 |
| Year 8 | ₹87,385 | ₹27,264 |
| Year 9 | ₹74,947 | ₹23,384 |
| Year 10 | ₹61,208 | ₹19,097 |
| Year 11 | ₹46,029 | ₹14,361 |
| Year 12 | ₹29,262 | Outside limit |
| Year 13 | ₹10,738 | Outside limit |
Years are 12-month periods from the first disbursement, not financial years. Interest added to the loan during the moratorium is repaid inside the principal part of later EMIs; this estimate counts only interest you pay as interest, which is what your lender’s interest certificate shows. The saving also needs enough taxable income to absorb the deduction. ₹40,000 of interest falls after the 8-year window.
Compare repayment tenures
| Tenure | EMI | Interest in EMIs |
|---|---|---|
| 5 years | ₹27,621 | ₹3,57,272 |
| 7 years | ₹21,582 | ₹5,12,832 |
| 10 years | ₹17,180 | ₹7,61,517 |
| 15 years | ₹13,970 | ₹12,14,545 |
Amortisation Schedule
How each instalment splits between interest and principal over time.
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EMI
₹17,180
IOB education loan schemes
5 schemes, each read from IOB's own website. Pick any of them in the calculator above.
Vidya Shresht (A / B rated institutions)
7.75% – 8%
Only for listed/rated institutes
- Benchmark
- RLLR 8.35% -0.60% to -0.35%
- Processing fee
- Not published on the page we checked
- Effective
- 8 Oct 2026
- Source
- IOB's page ↗
- Last verified
- 21 Oct 2026
RLLR (w.e.f 08.10.2026) - 8.35%.
Skill Loan
9.85%
Only for skill coursesSkill course
- Benchmark
- RLLR 8.35% + 1.50%
- Processing fee
- Not published on the page we checked
- Effective
- 8 Oct 2026
- Source
- IOB's page ↗
- Last verified
- 21 Oct 2026
Vidya Jyothi (India / abroad, general public)
10%
India and abroad
- Girl students / women
- 0.50%
- Benchmark
- RLLR 8.35% + 1.65%
- Processing fee
- Not published on the page we checked
- Effective
- 8 Oct 2026
- Source
- IOB's page ↗
- Last verified
- 21 Oct 2026
1.00% concession if interest is serviced during the moratorium; ranking-based concessions up to 1.50%.
Vidya Suraksha (up to ₹7.5 lakh)
10%
Check eligibility with the bank
- Benchmark
- RLLR 8.35% + 1.65%
- Processing fee
- Not published on the page we checked
- Effective
- 8 Oct 2026
- Source
- IOB's page ↗
- Last verified
- 21 Oct 2026
IOB Scholar
10.55% – 11.55%
Check eligibility with the bank
- Benchmark
- RLLR 8.35% + 2.20% to 3.20%
- Processing fee
- Not published on the page we checked
- Effective
- 8 Oct 2026
- Source
- IOB's page ↗
- Last verified
- 21 Oct 2026
The rate you are offered depends on the bank's assessment and can be higher than the starting rate. Compare education loan rates across lenders →
IOB education loan (study in India or abroad) rates
Verified on 21 October 2026 from IOB's site ↗
- Starting from
- 10% p.a.
- Published range
- Only the starting rate is published
- Processing fee
- Not published
The rate you are offered depends on your credit score, income and employer and can be higher than the starting rate. RBI rules do not allow foreclosure or part-prepayment charges on floating-rate loans to individuals (other than for business purposes).
How IOB compares
IOB's education loan starting rate of 10% is the 9th lowest of 18 banks with a verified rate. The lowest is Bank of Maharashtra at 8.8%, and the median is 10%.
- IOB
- ₹13,215
- Bank of Maharashtra
- ₹12,560
- Median bank
- ₹13,215
Monthly EMI on ₹10,00,000 on a 10-year loan, at each bank's starting rate. Your own rate depends on the bank's assessment.
Rate Verification & Official Notice
10.00% p.a.
10.00% – 10.00% p.a.
Not published
Applicable Conditions & Eligibility Factors:
- The lowest rate open to all students the bank publishes (study in India or abroad); lower rates for listed institutes, specific courses or with collateral are not used. Your rate depends on the course, the institution and the co-borrower's credit profile
Source: IOB education loan rates (official)
Rates subject to borrower risk-grade & RBI regulatory changes.How It Works
- 1Choose a IOB scheme: its rate, processing fee, effective date and source fill in.
- 2Enter the course length and the grace period after it; together they make the moratorium.
- 3IOB's pages we checked do not say how moratorium interest is worked out, so simple interest is an assumption; the compounded figure is shown alongside.
- 4The EMI is worked out on what you owe when repayment starts, and interest paid is estimated year by year for Section 80E (old tax regime).
Key Factors Influencing Your Rate
- •Skill and vocational courses have their own scheme.
- •Girl students: IOB publishes a concession on some schemes (see the table).
- •Some IOB rates come with conditions (only for skill courses; check eligibility with the bank); they are tagged in the table, and the calculator starts on a rate open to all.
- •Some IOB rates are only for students at institutes on the bank's list or in its rating categories (Vidya Shresht (A / B rated institutions)); they are tagged in the table, and the calculator starts on a rate open to all students.
- •Your institution, course, co-borrower's income and credit score decide where in the range you land.
PM-Vidyalaxmi: interest subvention
- 3% interest subvention during the moratorium on loans up to ₹10,00,000, for students with annual family income up to ₹8,00,000 who get no other government scholarship or subvention. It goes to one lakh students a year, and from the second year it depends on satisfactory academic performance.
- Collateral-free and guarantor-free loans for admission to qualifying institutions (top 100 in NIRF rankings, state government institutions ranked 101-200, and central government institutions) through merit-based admission.
- A 75% credit guarantee for loans up to ₹7,50,000.
- Rates are capped at the bank’s external benchmark lending rate (EBLR) + 0.5%. Repayment up to 15 years after the moratorium (course period + 1 year).
- Under the related CSIS scheme, students with family income up to ₹4,50,000 on technical or professional courses get full interest subvention during the moratorium on loans up to ₹10,00,000.
The calculator does not deduct the subvention, because the official pages do not say how it is worked out. Apply and check eligibility on the official PM-Vidyalaxmi portal. Figures from PIB: Cabinet release, 6 Nov 2024, Lok Sabha reply, 27 Jul 2026 and press note, 29 Jul 2026; checked 21 Oct 2026.
Section 80E: what we confirmed
- The deduction is the interest paid on a loan for higher education of yourself or a relative, with no rupee limit. Principal repayment does not count.
- Available only under the old tax regime. It is not in the income tax portal’s new regime list.
- The loan must come from a financial institution or an approved charitable institution.
- Individuals only; HUFs cannot claim it.
- The 8-year limit is in the Act itself. We could not open the Act text on an official site, so it is shown as unverified and you can switch it off above.
The Income-tax Act, 1961 was repealed on 1 April 2026 and replaced by the Income-tax Act, 2025; the AY 2026-27 return pages still use the 80E name. Sources: income tax portal, deductions for AY 2026-27, ITR-4 instructions, ITR-2 instructions and new Act FAQ; checked 21 Oct 2026.
Worked Numerical Example: IOB Education Loan EMI Calculator
For a ₹10,00,000 loan at the starting rate of 10% a year, with a 24-month course and a 12-month grace period, simple interest of ₹3,00,000 builds up before repayment starts, so ₹13,00,000 is repaid over 10 years (120 months). The EMI is ₹17,180, with total interest of ₹10,61,517. If you pay the interest while you study, the EMI is lower; the calculator above shows each option.
Frequently Asked Questions: IOB Education Loan EMI Calculator
- What is IOB's education loan (study in India or abroad) interest rate?
- IOB publishes education loan (study in India or abroad) rates starting from 10% a year, checked on 21 October 2026. The rate you are offered depends on your credit score, income and employer.
- Which IOB education loan schemes does this calculator cover?
- Vidya Shresht (A / B rated institutions); Skill Loan; Vidya Jyothi (India / abroad, general public); Vidya Suraksha (up to ₹7.5 lakh); IOB Scholar. Each rate was read from IOB's own website; the table lists the source, effective date and date checked.
- How does IOB charge interest during the moratorium?
- The IOB pages we checked do not say. The calculator assumes simple interest during the course and grace period, shows the compounded figure for comparison, and lets you choose to pay the interest while studying instead. Ask the branch how it will be charged.
- Is IOB's processing fee included in the EMI?
- No, a IOB loan EMI covers principal and interest only. The IOB pages we checked do not publish a processing fee for these schemes, so ask the branch before you apply.
- Can I claim Section 80E on a IOB education loan?
- Section 80E covers the interest (not the principal) on an education loan from a bank, under the old tax regime. The calculator estimates the saving from the interest you pay each year; see the Section 80E notes and official sources on the education loan EMI calculator.
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