HDFC Bank education loan for India and abroad


HDFC one of India's leading private sector banks offers education loans to meritorious students at competitive rates. The bank also offers education loan for studies abroad in association with Credila. Check the procedures, eligibility and other details for HDFC loan.

HDFC Bank is an established name in the financial sector. It is one of the leading private sector banks in India, with branches spread across the country. HDFC provides three different educational loan products to meet the varying requirement of students. They can be classified broadly as a loan for education in Indian Institutions, loan for education abroad and loan for students belonging to the economically weaker section.



Key features of education loan for study in India


  • No security or collateral required for loan of up to seven and a half lakhs
  • The bank will ask for collateral for loan that exceeds seven and a half lakh
  • Collateral accepted by the bank includes residential property, NSC, KVP, FDs held with HDFC and Life Insurance Policy etcetera
  • There's a moratorium period offered by the bank within which no EMIs are scheduled
  • Repayment of loan through EMI starts immediately on expiry of the moratorium period
  • The maximum repayment period is fifteen years
  • The interest on the loan is exempt from tax under Secton 80E
  • The loan amount is disbursed directly to the educational institution
  • The applicant can opt for life cover under Credit Protect, offered by HDFC Life Insurance
  • Admission into top-notch institutions can get an applicant a preferential interest rate
  • A co-applicant is mandatory for students applying for loan for regular courses
  • The bank provides loan for vocational education & training based on their capacity to repay the loan on completion of the course and employability

Eligibility


Applicants must meet the following criterion to be eligible for education loan –
  • The applicant must be an Indian citizen aged between 16 and 35 years
  • Collateral varies depending on the sum of the loan
  • Loan for full-time courses require a co-applicant (parents, spouse, in-laws)

Documentation


  • All education documents starting from class 10 up to the latest qualification
  • Unconditional admission offer from college/university along with fee structure
  • KYC documents – identity proof, age proof, residence proof and signature
  • Income documents of co-applicant – Six months bank statement of salary account and salary slips of the previous two months, with date of joining mentioned if salaried. If self-employed or running a business then IT Returns of last two years, bank statement of last six months and Profit/Loss Account and Balance Sheet for two year
  • Loan application filled, signed and submitted with self-attested photograph
  • Loan agreement to be signed by applicant and co-applicant
  • PAN and Aadhar card

Applicable fees


  • Loan processing fee of up to 1% of the total loan amount
  • Prepayment charges of up to 4% will be levied on the prepaid amount during moratorium period. There are no charges if the loan is prepaid in part or full after the moratorium period
  • Late EMI payments will be charged at 24% per annum on the unpaid sum, from the date of the default onwards
  • Legal/incidental fees will be charged as per actuals

Highlights of education loan for study abroad


HDFC issues education loans for higher studies abroad in association with Credila. These are the key highlights of the loan –
  • Representative's visits are scheduled at your doorstep and the rep answers queries and checks eligibility before you can begin applying to universities
  • Education loan taken from HDFC gets tax benefits under Section 80E
  • Loan amounts upwards of twenty lakhs are available
  • The loan processing, documentation and sanction process are simple and quick
  • HDFC Credila offers 100% loan for course fee
  • Collateral terms are not stringent
  • The loan covers course fee, living expenses, cost of travel, laptop, study material etcetera
  • Students can safely apply for loan for vocational training and join courses in fashion designing or baking and pastry making or courses in fitness or any other short term courses
  • Preferential rates are applicable to students who secure admission into top-ranking educational institutions
  • Co-applicant are mandatory for full-time courses and these can be parents, spouse or sibling. The in-laws and uncles and aunts can be added as secondary co-applicants

Eligibility & Documentation


The eligibility criteria are the same as that applicable for loan for studies in India and listed previously in this article.



The documentation is also the same; the only additional proofs required are –

  • GMAT, GRE, IELTS and TOEFL scores are applicable
  • Unconditional admission letter with mention of fee amount
  • CAS Letter for admission into universities in the UK and I 20 Form for students heading to the US
  • Passport

Other terms and conditions


  • A 2% late payment penalty is levied each month on the EMI not paid
  • The loan processing fee does not exceed 1.5% of the sanctioned amount


Important features


Borrowers are eligiblie for interest subsidy of education loan under the CSIS introduced by the Central Government. Loan repayment and other features remain same for all banks. You will find suitable information here and in this informative piece. If you belong to the OBC or the EBC section you are entitled to special benefits for the education loan you take. You might also want to learn how to calculate EMI on education loan.

HDFC has flexible loan repayment options for students. There is also a scheme that provides life insurance cover for the student, for an amount equal to the education loan.


Article by Juana
Juana is a freelance writer, with years of experience, creating content for varied online portals. She holds a degree in English Literature and has worked as a teacher and as a soft skill trainer. An avid reader, she writes on a variety of topics ranging from health, travel, education and personality development.

Follow Juana or read 406 articles authored by Juana

Related Articles

How Education Related To The Development Of Our Country

The education has a great important in our country. India was contributed ‘Gurukul’ system to the world. Education is an important factor for the overall development of a country. There are various prestigious institutions in our country for providing quality education. The talented and skilled brains should be utilized in our country itself. Certain problems are existing in our educational system. Education is always a strong power for the development and growth of our country.

Quality of Education in private technical institutes of India

In this article I have given a brief description about education in a private college. There are numerous points to be seen in private college out of which I have stressed upon some. Also I have given some points to be noted before joining a private college.

New Zealand A Perfect Place For Higher Studies

New Zealand is combination of a perfect country, metropolitan cities, serene towns and Educational Institutions. Most colleges there offering Higher Education are well known all over the world. It is the goal of the New Zealand Government to make all colleges there at par with International quality learning institutions.In this resource I will review New Zealand as a place for higher studies and as a country in general.

Can privatization of education system and Right to Education Act go together?

Recently, there was news that government is planning to privatize the complete educational system. But, the question arises that will this new scheme really be effective? Does the scheme have the capabilities to implement the Act of Right to Education for every child less than 14 years? This article explains about the pros and cons of privatizing the education system and its effect on the Right to Education Act.

Right of children to free and compulsory education act 2009

This article includes the salient feature of Right of children to free and compulsory education act 2009. I have discussed some of the important points of RTE act for quick reference. This article will immensely help all teachers, students and parents of India.

More articles: Education

Comments

No responses found. Be the first to comment...


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: