Section 80E Tax Deduction for Study Abroad Loans: Calculation & Real Worked Examples 2026
Updated 31 August 2026
About This Guide
How Indian parents and students can save up to 30% on education loan interest payments using Income Tax Section 80E. Real worked calculations for ₹40L and ₹60L loans.
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| Provider | Fees | Interest / monthly cost | Collateral | |
|---|---|---|---|---|
| SBI 80E Tax Savings Model | Included | 9.5% INR | Required | Visit site |
100% of interest paid on education loans is deductible under Section 80E for up to 8 consecutive years, with no upper limit on the deduction amount.
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Common Questions (FAQs)
Is there a cap on the maximum tax deduction under Section 80E?
No! Unlike Section 80C (capped at ₹1.5L), Section 80E has NO UPPER LIMIT on the total interest amount claimed.
Can parents claim Section 80E for foreign education loans?
Yes, a parent who takes the loan for their child's abroad education can claim the deduction against their Indian taxable income.