HDFC Bank Education Loan: Interest Rate, Features, How to Apply

Students can apply for three distinct types of education loans from HDFC. Cheap interest rates are just one of the many benefits that these loans provide. These student loans from HDFC Bank have a 15-year repayment term. Let’s explore this blog to learn about the aspects of HDFC Bank Education loans.

HDFC Bank Education Loan Interest Rates

Scheme Name	Maximum Loan Amount	Interest rate (p.a.)
HDFC Education Loan for Indians	Up to Rs.10 lakh	9.50% p.a. onwards

HDFC Education Loan to Indian Students

• Available to Indian citizens who are between the ages of 16 and 35.
• Should have been admitted based on merit or through an entrance exam.
• For full-time courses, co-applicants are required.
• You are eligible for a loan up to Rs. 30 lakh.
• If you are accepted into a prestigious university, you will receive preferential interest rates.
• The repayment period is 15 years long.
• A minimum of Rs. 1000 and a maximum of 1% of the loan amount, whichever is higher, are required for the processing fee.
• No unstated fees.
• Very little and straightforward documentation.
• Take advantage of affordable EMI payment choices.
• Refund on interest paid under the Income Tax Act of 1961 Section 80E.
• A maximum Rs. 7.5 lakh education loan can be obtained without collateral.

HDFC Education Loan for Study Abroad

• Available to Indian citizens who are between the ages of 16 and 35.
• In some situations, should be able to provide collateral (moveable or immovable).
• An unsecured loan of up to Rs. 45 lakh is available to you.
• When applying to full-time courses, a co-applicant is required.
• If you are accepted into a prestigious university, you will receive preferential interest rates.
• In 36 nations, loans for higher education are available for over 950 courses.
• Collateral can be used to cover the entire cost of reduction.
• The maximum repayment period is 14 years.
• Very little and straightforward documentation.
• No unstated fees.
• Take advantage of affordable EMI payment choices.
• Refund on interest paid under the Income Tax Act of 1961 Section 80E.

Eligibility Criteria for HDFC Bank Education Loan

The following are the requirements to be eligible to apply for an education loan from HDFC Bank: 

• You have to be an Indian citizen. 
• You have to be between the ages of 16 and 35.  
• A co-applicant, who may be a parent, spouse, parent-in-law, or guardian, is required for all full-time programs.  
• It is required that you are enrolled in graduate/postgraduate degree programs as well as postgraduate diploma programs at reputable universities that have been authorized by AICTE, UGC, the government, and other organizations. 
• You must have passed an entrance exam or been selected based on merit to be admitted to a higher education programme at a reputable university in India or abroad. 

Documents Required for HDFC Bank Education Loan

The following set of documents is required if you want to apply for an education loan from HDFC Bank:

Loans for Education in India for loans for pre-approval

• Properly completed application
• Most recent image (signed across)
• The institute’s admission letter with the fee breakdown
• marks from academic programs (SSC, HSC, and Graduation)
• evidence of age
• Identity verification
• evidence of residence
• evidence of signature
• pay stubs from the previous two months that include the joining date (Salaried)
• The salary account’s bank statement for the previous six months (salaried)
• ITR for the previous two years, including income calculations (self-employed)
• audited profit and loss statement or balance sheet for the previous two years (self-employed)
• Last six months’ worth of bank statements (self-employed)
• As evidence of turnover, the most recent sales or service tax return (self-employed)
• Evidence of eligibility (self-employed)

Post-sanction Education Loans for Indian Students

The aforementioned documentation must be submitted even for post-sanction loans. You will also need to send in the following in addition to them:

• Signed loan agreement with all parties participating, including PDCs, ACH, or SI Mandate
• Three security PDCs are required to be submitted in the event of ACH and SI form of repayment.

Documents Required for Education Loan for Foreign Education

• Two passport-sized photos of the applicant and co-applicant; a completed application form

Any photo ID 

• Aadhaar card voter ID
• Driving Record; Passport; PAN Card; Proof of Residence (Any one)
• Aadhaar card voter ID
• Driver’s license and passport

Academic Documents

• 12th grade exam mark sheet or certificate
• The transcript or diploma from the years of school that followed
• Documents related to scholarships (if appropriate)
• Marks from any entrance examination, if any
• Marksheets for IELTS, TOEFL, GMAT, and GRE, if relevant

Evidence of Admission

• The co-applicant’s bank statements for the last eight months
• pay stubs from the last three months or a salary certificate on an employer’s letter (for a co-applicant who is paid)
• The last two years’ income tax records for the co-applicant who is self-employed and receives a salary.
• Proof of office in the form of a lease deed, utility bill, title deed, etc. (Self-employed co-applicant)
• For the last two years, self-employed co-applicants must provide certified or provisional financial statements that have been properly certified by a CA.
• The bank representatives may also request any further proof of income that isn’t shown in the aforementioned paperwork.

Collateral 

• If collateral is supplied in the form of real estate, you must submit:
• 12 extracts, if it’s land.
• A registered selling agreement and a certificate of society share are provided.
• Deed of property title.
• original receipt for registration for the aforementioned contract.
• Building plan approved.
• certification of encumbrance.
• Current property tax bill with receipts attached.
• the most recent maintenance invoice accompanied by builder or society receipts.
• letter of allotment from a municipal corporation or an authorized government agency, such as CIDCO, MHADA, etc.

Fees for HDFC Bank Education Loan  

The following are the fees and charges related to the education loan from HDFC Bank: 

Type of Charge	Amount
Processing fee	Nil – domestic cases up to 1% – for international/part-time/special initiative cases, or a minimum of Rs.1000 (whichever is more)
Charges for late EMI payment	24% p.a. on the outstanding EMI amount from the EMI due date
Duplicate repayment schedule charges	Nil
EMI return charges	Rs.450
Cheque/ACH swapping charges	Nil
Loan re-booking/re-scheduling charges	Nil
Loan cancellation charges	Nil

FAQs

Can a student get a loan from HDFC Bank?

The quick Personal Loan offered by HDFC Bank to students has adjustable terms ranging from 12 to 60 months, which lessens the strain of EMI repayment. Simple application with little documentation: Applying for a personal loan from HDFC Bank for students in India is a simple process.

Can I get a 20 lakhs education loan without collateral from HDFC?

4 lakhs and Rs. 7.5 lakhs, respectively, for study abroad and in India, without any collateral security. For gifted and worthy candidates, HDFC Credila can provide up to Rs. 20 Lakhs without guarantee.

What is the processing fee for HDFC loan?

HDFC levies processing fees of Rs. 3,000 or 0.50% of the loan amount for professionals who are self-employed or have a salaried income. Processing fees up to 1.50% of the loan amount or Rs. 4,500, whichever is higher, plus relevant taxes are assessed by HDFC on self-employed non-professionals.