Education loan repaymet

Hi All,

I Have taken education loan of 2.5 lakh between 2008-12 period and now i have started paying emi of 4500 rs from April -2013 .

  • Kindly clarify how will the emi will be distributed between principal  and interest of loan OR all of the emi will go under interest repayment which was accumlated over the period of 4 year (2008-2012) 
  • . If all of the emi is going under interest repayment then can i claim rebate of 4500*12=54000 under section 80E.(It includes interest charged on loan for last year)

Thanks and Regards

Saurabh Goyal

Replies (6)

Bank will charges interest on loan and will calculated on reducing balance. Initially your interest component shall be large and gradually it will reduce. Interest paid on education loan is eligible for deduction u/s 80E.

You can ask the bank to give you the breakup of interest and principal component of the EMI

ask to bank to provide loan repayment schedule then after we can determind the principal and intt component for deduction u/s 80C and 80E respctively.
saurabh ask for breakup from the bank for principal repayment & interest payment.Interest paid can be claimed as deduction u/s 80e.
Take ur loan statement from ur Bank ask him to give certificate of Interest.They given a statement which shows interest deposted by you as a repyment of interest.They combined all interest and Give u a certificate which shows interest Repayment deduction under Sec 80 E..

Collect loan bank payment schedule

Principal in 80C

Interest in 80E 

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