Education Loan Prepayment Calculator
Interest and months saved by part-paying your education loan or raising your EMI each year.
Updated 30 September 2026 · 8 lenders trackedAbout this calculator
Floating-rate education loans can be prepaid any time without charges. Enter your outstanding balance, a lump sum or extra monthly payment, or an annual EMI step-up as your salary grows.
Education Loan Prepayment Calculator
Prepayment rules
| Situation | Rule |
|---|---|
| Floating-rate loans to individuals (non-business) | No prepayment / foreclosure charge — any lender, part or full, from any source of funds |
| Loans sanctioned or renewed from 1 Jan 2026 | RBI (Pre-payment Charges on Loans) Directions, 2025 also bar charges on floating-rate business loans to individuals and MSEs at most banks and large NBFCs; no minimum lock-in |
| Fixed-rate loans | Lender may charge as per the sanction letter and Key Facts Statement |
| Disclosure | Any charge must be shown in the sanction letter, loan agreement and KFS; waived charges cannot be levied later |
Prepay or keep the 80E deduction?
Section 80E lets you deduct all interest paid for up to 8 years, which lowers the effective cost of the loan under the old tax regime (for example, 9.5% effectively becomes about 6.5% at the 30% slab). Even so, prepaying still saves real money — the tax benefit only returns part of the interest. Prepay once you have an emergency fund, and prioritise any higher-cost debt first.
Frequently asked questions
Should I reduce EMI or tenure after prepaying?
Reducing tenure saves more interest; reducing EMI gives more monthly breathing room.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.