HDFC Bank Education Loan
HDFC Bank is an Indian banking and financial services company. HDFC Bank is one of the India’s largest leading private sector banks by assets and world’s 10th largest bank by market capitalisation as of April 2021. It is the third largest company by market capitalisation as of Rs 122.50 billion on the Indian stock exchanges.
|Headquarters||Mumbai, Maharashtra, India|
|Owner||Housing Development, Finance Corporation|
|Subsidiaries||HDFC Securities HDB Financial Services|
What is an Education Loan?
Student loan or Education loan is a loan or funds acquired by an individual to pursue higher studies in India or abroad. Now you can pursue your dream education course in India and abroad with Education loan.
There are four types of education loan in India
- Under Graduate Education Loan: These are given to students who have completed their secondary education and looking forward to do higher studies in the form of under graduation. It can be done in India or abroad.
- Post Graduate Education Loan: This loan is for the one who wants to pursue post-graduation after completing their graduation from a reputed university/college.
- Parents Availing Education Loan: These is the case where the parents take loan for the education of their child. This is an unsecured loan and need not be for graduate or post-graduate to avail for this loan.
- Career Growth Education Loan: These loans are provided to young generations who want to pursue courses or trainings, certification that will benefit their career growth.
How to Apply for HDFC Bank Education Loan
HDFC Bank understands the needs of every student and offers extremely competitive education loans at better interest rates. It provides loan to Indian students for pursuing their higher education in India or abroad. Now you can pursue your dream education in India and abroad with education loan from HDFC Bank. Every year many students secure admissions in top universities and colleges in India and abroad with HDFC Bank Education loan. You can apply for HDFC Bank education loan through offline and online mode. You can visit your nearest HDFC branch to apply for the education loan. You will have to fill up your education loan form and submit your required documents to apply for the loan. On the other hand, you can also apply through online process. To apply online visit the HDFC Bank official website, follow the procedures and apply for the loan.
Benefits and Features of HDFC Bank Education Loan
Following are some of the advantages of applying for an education loan at HDFC Bank
- Hassle-free application process
- No end-use restriction
- Flexible tenure
- Low interest rates
- Less paperwork
- Faster disbursal
- Minimal documentation
- Pocket-friendly EMIs
- You can avail yourself of a loan up to Rs 30 lakh to 45 lakh
Eligibility Criteria for HDFC Bank Education Loan in India and Overseas
- He/She should be an Indian resident
- Applicant must be between 16 to 35 years of age
- Applicant should have secured admission with the educational institution in India or abroad through Entrance Test/Merit Based selection process
Interest Rate of HDFC Bank Education Loan for Studies in India and abroad
To study in India or abroad HDFC Bank’s rate of interest ranges between 9% to 14.1%, which is however subject to change at the direction of the bank.
Also Read: ICICI Bank Education Loan
Features of HDFC Bank Education Loan for Studies in India
Below are certain features of HDFC Bank education loan for the students to pursue their dream education in India
- HDFC Bank provides term loan to Indian students for pursuing higher education in India.
- Quantum of loan amount is up to 10 lakh for studies in India.
- No margin is required for loans up to INR 4 lakhs, 5% of margin for loans above INR 4 lakhs for studies in India.
- Repayment tenure is up to 10 years after completing the course for loans up to 7.5 lakhs and tenure can go up to 15 years for above 7.5 lakhs.
- No security required for loan up to 4 lakhs and parents to be co-borrowers. For above 7.5 lakhs, tangible collateral required with third-party guarantee.
Features of HDFC Bank Education Loan for Foreign Studies
Below are certain features of HDFC Bank education loan for the students to pursue foreign education
- HDFC Bank provides term loan to Indian students for pursuing higher education in foreign universities.
- Quantum of loan amount is up to 20 lakhs for studies overseas.
- No margin required for loans up to INR 4 lakhs and 15% of margin for above 4 lakhs for studies in foreign.
- Repayment tenure is up to 10 years after completing the course for loans up to 7.5 lakhs and 15 years for above 7.5 lakhs.
- The parents or the guardian will be the co-applicant of the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 lakhs.
The documents that are needed to be submit to avail an education loan from HDFC Bank are listed below:
- Letter of admission from the institute
- Dully filled application loan
- 2 passport size photographs with signed across
- Statement of cost of study
- Marksheet/certificate of 12/ Graduation/ Entrance exam if applicable
- PAN Card of student and Parents/ Guardian
- AADHAR Card of the student and Parent/ Guardian
- Age proof
- Proof of Identity
- Proof of residence
- Signature proof
- Student/Co-borrower/ guarantor’s bank account statement for last 6 months
- ITR of last two years with computation of income (Self-employed)
- Brief statement of assets & liabilities of Parent/Guardian/ other co-borrower
- Proof of Income( salary slips etc.)
HDFC Bank Education Loan EMI Calculator
To calculate how much you would have to pay in EMI after taking out a bank loan, you have to calculate through EMI calculator. Use the BankBazaar Education Loan EMI Calculator to calculate your EMI. Before selecting the “Calculate button”, input the loan amount, repayment period, and interest rate as needed. The education loan EMI calculator will help understand how much you will have to pay on your loan which will help you plan your finance better and ensure that you take a loan and will be afford to repay the loan in stress-free manner. To calculate, just enter the current interest rate as well as the loan amount and repayment tenure required in the relevant fields to calculate.
EMI Payment Methods
HDFC Bank education loan EMI can be repaid in the following three ways
1. Standing Instruction (SI): If you are an existing account holder with HDFC Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the HDFC Bank account you specify.
2. Electronic Clearing Service (ECS): This mode can be used if you have a non-HDFC Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
3. Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-HDFC Bank account at your nearest HDFC Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. It is to be noted that Post Dated Cheques will be collected in non-ECS locations only.
How to Apply for HDFC Bank Education Loan through HDFC CREDILA
You can also apply for the loan through HDFC CREDILA, The Education Loan Specialist. HDFC Credila an HDFC Ltd. Company, is India’s first dedicated education loan company. HDFC Credila Financial Services Limited pioneered the concept of specialist Education loan lender and became India’s first dedicated education loan company. Just fill up your application form at HDFC CREDILA and avail for your loan.
HDFC Credila has funded thousands of students from India to over 2500+ unique educational institutes across 35+ countries.
Some of the features of HDFC CREDILA are:
- Customized Education Loans, Home Delivered
- No margin money required
- Up to 100% finance
- Attractive rate of Interest
- No upper limit on loan amount
- Long term loans resulting in easy EMIs
- Flexibility in collateral security
- Loan against property mortgaged with HDFC
1. Can I take an education loan without a co-borrower?
Ans: No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent or guardian.
2. Can I apply for an Education loan to study abroad?
Ans: Yes, HDFC Bank sets no upper limit on the loan amount for the courses pursued abroad which also includes travel expenses and study tours.
3. Is there a processing fee for an education loan with HDFC Bank?
Ans: No, there are no processing fees.
4. What are the charges for late payment of EMI?
Ans: The amount charged for late payment is charged at the rate of 24% p.a. on overdue/unpaid EMI amount outstanding from EMI due date.
5. Can I make pre-payment?
Ans: Yes, pre-payment is allowed. However, you will need to incur a charge of up to 4% of the outstanding balance if it is done during moratorium period. In case, pre-payment is done after the expiry of the moratorium, no pre-payment charge is levied.
6. Will I get tax benefits on availing an Education Loan from HDFC Bank?
Ans: Yes, you will get tax benefits under Section 80-E of the Income Tax Act 1961 on availing of an education loan from HDFC Bank.
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