If you’ve taken an education loan for your dream university abroad, you already know it’s a smart
investment. But did you know that this investment also comes with tax benefits? Yes, you heard that right! You can save a good chunk of money every year on your tax payments—legally! Enter the Education Loan Interest Certificate—a document that not only helps you track your loan repayment but also unlocks tax savings under Section 80E of the Income Tax Act, 1961. But what exactly is it, and why is it important?
Imagine this: You’ve taken an education loan, and every month, you’re diligently repaying the
EMIs. But at the end of the financial year, you realise you could have saved a big amount in taxes
just by submitting this one certificate! That’s like paying extra on your Netflix subscription when
you already had a discount code!
To ensure you don’t leave money on the table, let’s break down everything you need to know about
the Education Loan Interest Certificate—from what it is, how to get it, and how to use it for tax
deductions. Because when it comes to finances, thoda planning aur jugaad toh banta hai, boss!
What is an Education Loan Interest Certificate?
An Education Loan Interest Certificate is an official document issued by your lender that details the
amount of interest you’ve paid on your student loan in a particular financial year.
This isn’t just a random piece of paper—it’s a powerful tax-saving tool! Under Section 80E of the
Income Tax Act, 1961, the entire interest paid on your education loan is eligible for tax deduction.
The best part? There’s no upper limit on the amount you can claim!
Why is the Education Loan Interest Certificate Important?
- Big Tax Savings: You can deduct the full interest amount paid on your education loan from your taxable income. That means less tax to pay and more money in your pocket!
- Financial Planning: Knowing exactly how much interest you’re paying helps you plan your finances better—no last-minute surprises.
- Proof for Tax Authorities: When filing your tax return, this document acts as official proof to claim deductions under Section 80E.
- Helpful for Future Loan Planning: If you ever plan to take another loan (for a house, car, or business), a good repayment track record helps build your financial credibility.
How to Obtain Your Education Loan Interest Certificate
Getting your interest certificate is super easy! Here’s how you can do it:
Download Online (The Quickest Way!)
Most banks and NBFCs allow borrowers to download their interest certificates online through their
internet banking portal. For example:
- SBI Education Loan: Log in to your SBI net banking, go to ‘Loan Services’, and download the certificate.
- HDFC Credila: Available under the ‘Loan Documents’ section in the customer portal. Other Banks & NBFCs: Check your lender’s official website or app for options.
Visit Your Bank Branch (The Traditional Way!)
Prefer face-to-face interaction? Walk into your lender’s branch and request the certificate in person. Make sure to carry your loan account details and valid ID proof for verification.
Call Customer Support (The Lazy But Effective Way!)
Some financial institutions let you request the certificate via phone banking or email support. Just
call your lender’s helpline, and they’ll send the certificate to your registered email.
How to Use Your Interest Certificate for Tax Deductions
Once you have the certificate, here’s how to claim tax benefits under Section 80E:
- Include it in Your ITR Filing: While filing your income tax return (ITR), declare the interest
paid under ‘Deductions – Section 80E’. - Attach it as Proof: Keep the certificate handy in case the Income Tax Department asks for verification.
- Ensure You’re Eligible: The loan should be taken from a recognised financial institution or NBFC—loans from family or friends don’t qualify for tax deductions!
- Understand the Time Limit: Section 80E deductions are available for 8 years or until the interest is fully repaid—whichever is earlier.
How Lorien Finance Can Help You Save More!
At Lorien Finance, we don’t just provide education loans—we ensure that you maximise your
financial benefits while repaying them.
- Hassle-Free Education Loans: Low-interest rates, flexible repayment, and zero stress!
- Instant Interest Certificates: Get your interest certificate without delays for easy tax filing.
- Expert Guidance: Need help understanding tax benefits? Our team is here to assist you with
smart financial planning!
Why pay more taxes when you can save smartly? Apply for a student loan with Lorien Finance
today! (Add link on bold section)
FAQs
Who can claim tax benefits under Section 80E?
The borrower (you) can claim deductions if the loan is taken for yourself, your spouse, children, or
a student under your legal guardianship.
Is there a limit on how much I can claim under Section 80E?
No! You can claim the full interest amount paid—there’s no upper limit on deductions.
Can I claim tax benefits on the principal loan amount?
No, Section 80E covers only the interest portion—not the principal repayment.
Can I claim tax benefits if my employer repays my loan?
Nope! The deduction is available only to the person who repays the loan from their income.
How long can I claim tax benefits on my education loan?
Up to 8 years or until the interest is fully paid—whichever happens first.
