How to use the Education Loan Eligibility Estimator
- 1. Enter the costTotal course cost, your own funds and scholarships, and any margin the lender asks for.
- 2. Enter income and EMIsCo-applicant's net monthly income, existing EMIs and the lender's income limit.
- 3. Add securityChoose collateral or none, enter the limits, and see the estimate and what limits it.
How the estimate is made
The estimate is the lowest of three limits:
- Need = course cost − scholarships and own funds − the margin you pay.
- Repayment capacity: max EMI = co-applicant income × the lender's allowed share − existing EMIs. That EMI over the repayment period gives the balance it can repay. Because interest builds up during the moratorium, this is divided by (1 + rate × moratorium years) to get the amount you can borrow today.
- Security: collateral value × the share a lender lends against, or the lender's limit without collateral if you know it.
Worked example
The course costs ₹12,00,000 and you have ₹1,00,000, so you need ₹11,00,000. The co-applicant earns ₹60,000 a month with a ₹5,000 EMI. At a 50% limit, the max EMI is ₹30,000 − ₹5,000 = ₹25,000.
At 10% over 10 years, ₹25,000 a month repays about ₹18,91,779. With 60 months of moratorium, that is ₹18,91,779 ÷ 1.5 ≈ ₹12,61,186 borrowed today. No security limit is set, so the estimate is ₹11,00,000, limited by what you need. Its EMI after the moratorium would be about ₹21,805 if interest is added to the loan.
What lenders also check
This is a rough guide, not an offer. Lenders also look at the course and institution, the credit scores of the student and co-applicant, the student's job prospects and their own policy limits. Many set different limits with and without collateral. Every rate and limit here is editable: check the current terms with two or three banks. Then plan repayments with the education loan EMI calculator.
Frequently asked questions
What is FOIR?
Fixed obligations to income ratio: the share of monthly income a lender allows for all EMIs together. Lenders set their own limit, so the value here is an example.
Do I need collateral?
It depends on the lender and the loan amount. Some lend smaller amounts without collateral. Ask the bank for its current limits.
Does the student's future salary count?
Some lenders consider it for certain courses and institutions. This tool uses only the co-applicant's income, so it may be on the safe side.
Is it free?
Yes. You enter your name and WhatsApp number once to see the result, and other Uncodemy tools then open without the form.