Discover HDFC Bank Education Loan, your key to studying abroad. Explore eligibility criteria, competitive interest rates, use our EMI calculator, and apply online hassle-free. Unlock your educational dreams today!

Students can choose between three distinct types of education loans from HDFC. Numerous benefits, including low interest rates, are provided by these loans. These student loans from HDFC Bank have a 15-year payback duration.

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job. The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job.It is only after this time that you are expected to pay the loan.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

How many types of HDFC bank education loan in India?

Four different forms of education loans are available from HDFC Bank, one of the top private sector banks in India, to assist students in paying for their higher education:

1.HDFC Bank Education Loan for Indian Education:

Indian students who want to pursue higher education in India are eligible for this form of financing. The loan will pay for all associated costs, including tuition and dorm fees.

2.HDFC Bank Education Loan for Study Abroad:

Indian students who want to pursue higher education abroad should apply for this loan. It pays for living costs, tuition, and other associated costs.

3.HDFC Bank Skill Loan:

This loan is offered to students who wish to undergo vocational education and training programs in India. The loan covers the tuition fees, examination fees, and other related expenses.

4.HDFC Bank Loan for Education Abroad:

Students who don’t have a co-borrower or collateral but want to pursue higher education abroad are eligible for this loan. The loan pays for living expenses, tuition, and other relevant costs.

Advantages of HDFC Bank Education Loan

An education loan from HDFC Bank has a number of benefits, including:

1.Wide range of loan options:

To meet the needs of various students, HDFC Bank provides a range of educational loan choices. HDFC Bank provides a loan option for you whether you wish to study in India or abroad, take a vocational course, or don’t have a co-borrower or collateral.

2.Competitive interest rates:

Education loans from HDFC Bank are available at attractive interest rates, which are often lower than those for other loan kinds like personal loans.

3.Flexibility in repayment:

Borrowers at HDFC Bank have the option of selecting a payback period of up to 15 years, which makes managing the loan payments easy.

4.No prepayment penalty:

If you wish to pay off the loan before the repayment term is over, HDFC Bank does not impose any prepayment penalties.

5.Easy application process:

For education loans, HDFC Bank offers a quick and easy application procedure that can be completed online or at any HDFC Bank location.

6.No margin money required:

You can obtain a loan for the entire amount of your school costs because HDFC Bank does not need applicants to furnish any margin money.

7.Tax benefits:

Under Section 80E of the Income Tax Act of 1961, borrowers may be eligible for tax breaks on interest paid on student loan debt.

Features of HDFC Bank Education Loan for Studies in India

Some of the main characteristics of the HDFC Bank Education Loan for Studies in India are as follows:

Loan amount: HDFC Bank provides loans for Indian students ranging from 50,000 to 20 lakh rupees.

Eligibility:The loan is available to Indian citizens who have been accepted to a reputable Indian university for a graduation, post-graduate, or professional programme.

Repayment tenure:The loan has a maximum 15-year payback period, giving borrowers flexibility in how they handle debt repayment.

Margin money:For loans up to Rs. 4 lakh, no margin money is necessary. A margin of 5% is necessary for loans for studies in India for amounts beyond Rs. 4 lakh.

Interest rate:The HDFC Bank Education Loan for Studies in India has a competitive interest rate that is based on the borrower’s creditworthiness and variables including the loan amount and payback period.

Collateral:No collateral is necessary for loans up to Rs. 7.5 lakh, according to HDFC Bank. Collateral in the form of a third-party guarantee or security may be needed for loans over Rs. 7.5 lakh.

Loan disbursement:Depending on the need, the loan is issued either directly to the school or to the student.

Expenses covered:Tuition, test fees, library fees, lab fees, and other relevant costs are all covered by the loan.

Tax benefits:Under Section 80E of the Income Tax Act of 1961, borrowers may be eligible for tax breaks on interest paid on student loan debt.

Features of HDFC Bank Education Loan for Foreign Education

Here are some of the key features of HDFC Bank Education Loan for Foreign Education:

1.Loan amount:Depending on the course and institution, HDFC Bank provides loans for studying abroad ranging from Rs. 1 lakh to Rs. 1.5 crore.

2.Eligibility:The loan is available to Indian nationals who have been accepted for a graduate, post-graduate, or professional programme at a recognised institution abroad.

3.Repayment tenure:The loan has a maximum 15-year payback period, giving borrowers flexibility in how they handle debt repayment.

4.Margin money:For loans beyond Rs. 20 lakh for overseas study, 15% margin money is needed. For loans up to Rs. 20 lakh, no margin money is necessary.

5.Interest rate:The HDFC Bank Education Loan for Foreign Education has a competitive interest rate that is determined by the loan amount, the length of the repayment period, and the borrower’s creditworthiness.

6.Collateral:Loans over Rs. 40 lakh must be secured by collateral, according to HDFC Bank. Property or fixed deposits are accepted as collateral.

7.Loan disbursement:Depending on the need, the loan is issued either directly to the school or to the student.

8.Expenses covered:Tuition fees, housing expenses, travel costs, and other connected costs are all covered by the loan.

9.Forex services:For students travelling overseas, HDFC Bank also offers forex services including foreign currency notes, travel cards, and remittance services.

10.Tax benefits:Under Section 80E of the Income Tax Act of 1961, borrowers may be eligible for tax breaks on interest paid on student loan debt.

Eligibility Criteria for HDFC Bank Education Loan

The eligibility criteria for HDFC Bank Education Loan are as follows:

Nationality:The candidate must be an Indian national.

Age:The candidate must be between the ages of 18 and 35.

Academic qualification:The candidate should be qualified to enrol in a graduate, post-graduate, or professional programme at a reputable institution, whether it be in India or overseas.

Co-borrower:For the majority of HDFC Bank Education Loans, a co-borrower is required. A parent, spouse, or other close family must be a co-borrower.

Income:To guarantee prompt loan repayment, the co-borrower must have a steady source of income. When determining whether an applicant is eligible for a loan, the bank may also take their prospective future earnings into account.

Credit score:A solid credit score is required for both the borrower and the applicant as it plays a significant role in loan approval.

Collateral:For loans over a specific threshold, collateral could be needed. Depending on the loan amount, the course, and the institution, different types and amounts of collateral may be needed.

Fees and Charges for HDFC Bank Education Loan

Some of the fees and charges for the HDFC Bank Education Loan are listed below:

Type of Charge	Amount
Processing fee	A processing fee of up to 1.5% of the loan amount, with a minimum of Rs. 1,000 and a maximum of Rs. 10,000, is imposed by HDFC Bank. Processing charges are not refundable.
Prepayment charges	f the applicant repays the loan from his or her own resources, there are no fees for prepayment for the HDFC Bank Education Loan.
Late payment charges	If repayment is not made as agreed, late payment penalties of 2% per month will be assessed.
Penal interest	Repayment failure may result in a penalty interest charge of 2% per month on the outstanding balance.
Loan cancellation charges	There can be a small fee levied by HDFC Bank if the loan is terminated for any reason.
Stamp duty and other charges	Depending on the state legislation, stamp duty and other fees could be charged.
Other charges	According to the bank’s policy, additional fees including legal fees and paperwork fees could also be charged.

Documents Required for HDFC Bank Education Loan

Here is a list of documents required for HDFC Bank Education Loan:

1. Identity proof: Passport, Aadhaar card, PAN card, driving license, voter ID card, etc.
2. Address proof: Aadhaar card, utility bills (electricity, water, telephone, etc.), bank statement, etc.
3. Income proof: Salary slips, bank statements, income tax returns, Form 16, etc. of the co-borrower or guarantor.
4. Academic documents: Admission letter, fee structure, mark sheets, degree certificates, etc.
5. Proof of collateral (if applicable): Property papers, valuation report, etc.
6. Photographs: Recent passport size photographs of the applicant and co-borrower.
7. Loan application form: Duly filled and signed application form.
8. Any other documents: Any other documents as requested by the bank, such as a letter from the employer, etc.

It is significant to note that depending on the kind of school loan, the loan amount, and the applicant’s profile, different documentation may be needed. Before applying, applicants are urged to review the precise documentation needs for the loan they are interested in.

FAQ – HDFC Bank Education Loan