VCFO Lite
Education loan via Vidya Lakshmi and interest deduction (old Sec 80E, new Sec 129)
What this means, checked by a CA
An education loan's interest is fully deductible for up to 8 years if the right person borrows from an eligible lender. We help you apply through the Vidya Lakshmi portal, choose who should be the borrower, and plan the yearly deduction so it is not lost.
₹1,499
One time, with a yearly claim for up to 8 years, + 18% GST
- Delivered in 2 working days after admission and loan details
- Due: Apply once admission is confirmed and before fees are due; claim the deduction from the year interest payment starts, for that year and the next 7
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 7 items
Admission letter and course details
Course must be higher education
Lender name and type
Bank or notified institution only
Loan sanction letter
Shows borrower and purpose
Yearly interest certificate
Interest paid in the year
Borrower's relation to student
Self, spouse, child or ward
Year interest repayment started
Starts the 8-year clock
Tax regime of the claimant
Old regime only
DiscussionWhat we discuss · 5 items
Who will be the main borrower: the student or a parent?
Only the borrower who pays interest claims
Is the lender a bank, a notified NBFC or a foreign lender?
Non-notified lenders do not qualify
When will interest payments start (during moratorium or after)?
Deduction counts from first interest paid
Old or new regime for the claimant?
No deduction in new regime
Do you plan to prepay the loan early?
Deduction stops once interest ends
FormsForms we file · 5 items
Decide borrower and co-borrower; check lender eligibility for the deduction
Where: Internal. Due: Before applying
Register the student on the Vidya Lakshmi portal, fill the common education loan application and apply to the chosen banks
Where: https://www.vidyalakshmi.co.in. Due: After admission, before fees are due
Track status on the portal and respond to bank queries; accept the sanction
Where: https://www.vidyalakshmi.co.in. Due: As banks respond
Plan the 8-year deduction window
Deduction = full interest paid in the year, no upper limit; years = initial year plus 7
Where: Internal. Due: When interest payment starts
Each year, get the interest certificate and claim in the return under the old regime
Where: https://www.incometax.gov.in. Due: Return due date
DeliverablesWhat you get · 3 items
Borrower and lender plan with tax saving estimate
When: 2 working days
Vidya Lakshmi application number
When: On submission
Yearly deduction schedule
When: With the plan
Questions people ask
Is there a limit on the deduction?
No. The entire interest paid in the year is deductible.
For how many years?
The year you start paying interest and the next 7 years, or until interest is fully paid.
Does a course abroad qualify?
Yes, courses in India or abroad after Class 12 qualify.
Can I claim for my child's loan?
Yes, if you are the borrower and pay the interest.
What changes under the Income-tax Act 2025?
The deduction moves to Sec 129 from 1 April 2026 with the same conditions.
My loan is from an NBFC. Does it qualify?
Only if the NBFC is notified as a financial institution; earlier notifications continue under the 2025 Act.
Your Savvy is a verified professional. Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.