https://www.wemakescholars.com/education-loan/hdfc-bank
HDFC Bank Education Loan
✓ Get a loan of up to 1 Crore
✓ Interest rate starting from 9.75%
Table of content
- HDFC Bank Education loan
- HDFC Abroad Education Loan with Collateral
- HDFC Education Loan for Abroad without Collateral
- HDFC Education Loan With Collateral To Study In India
- HDFC Bank education loan without collateral to study in India
- Eligibility Criteria of HDFC Bank Loan
- HDFC Bank Education Loan Processing Fee
- Documents Required for Education Loan in HDFC Bank
- HDFC Bank Education Loan Insurance
- HDFC Bank Loan Margin Calculation
- HDFC Credila Education Loan Repayment Policies
- How to apply for HDFC Bank Education Loan?
- HDFC Bank Loan EMI calculator
- Interest Subsidy Schemes in HDFC Bank
- FAQ's
- Need Help? Ask Here!
HDFC Bank Education loan
HDFC Bank, one of the leading private sector banks in India, offers education loans to support students' aspirations for higher education both in India and Abroad with interest rates starting from 9.75% and loan amounts extending up to 1 Crore with collateral and up to 80 Lakhs without collateral. HDFC Bank doesn't directly offer education loans, They do it through their NBFC arm called HDFC Credila.
Section 80E of the Income Tax Act in India allows for the deduction of interest paid on an education loan from taxable income. This deduction is available for individuals who have taken an education loan for higher studies for themselves, their spouse, or their children. The deduction is available for a maximum of eight assessment years or until the interest is fully repaid, whichever is earlier. There is no limit on the amount that can be claimed as a deduction under Section 80E.
As mentioned in section 80E, an education loan can be given for an effective rate of interest of up to 8.64% in HDFC Bank.
HDFC Abroad Education Loan with Collateral
HDFC Abroad Education Loan with Collateral
Parameters |
Details |
Loan Limit |
Upto 1 Crore |
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Interest rate |
Starting from 9.75% (latest ROI) |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Upto 14 years including the moratorium period (can be extended depending on circumstances) |
Repayment policies |
Interest during the moratorium period will be added to the outstanding loan amount and paid with EMI |
HDFC Education Loan for Abroad without Collateral
HDFC Education Loan for Abroad without Collateral
Parameters |
Details |
Loan Limit |
Upto 45 Lakhs |
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
Interest rate |
Starting from 9.75% (latest ROI) |
Moratorium Period |
Course duration + 12 months |
Repayment Duration |
Upto 14 years including the moratorium period (can be extended depending on circumstances) |
HDFC Education Loan With Collateral To Study In India
HDFC Education Loan With Collateral To Study In India
Parameters |
Details |
Loan Limit |
Upto 1 Crore |
Accepted co-applicant |
Parents, Parents in law, Siblings & Spouse |
Interest rate |
Starting from 9.75% (latest ROI) |
Moratorium Period |
Course duration + 1 year or 6 months |
Repayment Duration |
Up to 15 years (can be extended depending on circumstances) |
HDFC Bank education loan without collateral to study in India:
Parameters |
Details |
Loan Limit |
Upto 50 lakhs |
Accepted co-applicant |
Parents, Parents in law, Siblings & Spouse |
Interest rate |
Starting from 11% (latest ROI) |
Moratorium Period |
Course duration + 1 year or 6 months |
Repayment Duration |
Up to 15 years (can be extended depending on circumstances) |
HDFC Bank education loan without collateral to study in India
Parameters |
Details |
Loan Limit |
Upto 50 lakhs |
Accepted co-applicant |
Parents, Parents in law, Siblings & Spouse |
Interest rate |
Starting from 11% (latest ROI) |
Moratorium Period |
Course duration + 1 year or 6 months |
Repayment Duration |
Up to 15 years (can be extended depending on circumstances) |
Eligibility Criteria of HDFC Bank Loan
The eligibility criteria for education Loans in HDFC Bank may vary depending on the type of education loan. Here are some common eligibility criteria typically required by HDFC Bank for education loans:
- Indian Citizenship: The applicant should be an Indian citizen. Non-resident Indians (NRIs) may have different eligibility criteria depending on factors such as age, course, and institution and in such cases, power of attorney must be given to parents/parents-in-law/spouse/sibling/children residing in India
- Age Criteria: The age of the applicant should be between 16 to 35 years. However, this can vary based on the course and the bank's policies.
- Academic Qualifications: The applicant should have secured admission to a recognized course or institution. This could be for undergraduate, postgraduate, or diploma courses in India or abroad through Entrance Test/ Merit Based Selection process
- Course and Institution: HDFC Bank usually provides education loans for the institutions recognized by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
- Course Eligibility: Courses like MS, MBA, MBBS/ MD, and Executive Management Courses (Working Executives) are eligible for HDFC loans. Other passion-based courses depend on cases like the co-applicants income and collateral provided.
Note: For passion-based courses minimum income of the Co-applicant must be 12 Lakhs per annum and there’s a possibility of direct EMI payment during the moratorium period.
HDFC Bank Education Loan Processing Fee
Type of education loan | Processing fee |
For study in India | 0% |
For study abroad | 1% of the loan amount or a minimum of Rs.1000 (whichever is more) |
Apart from this HDFC charges the following fees from the students
Type of service | Amount charged |
Charges for delay in payment | @ 2 % per month of installment ( MI/PMII)+ applicable taxes |
Direct Debit or ACH mandate or Cheque swapping charges | Up to Rs.500/- per swap instance plus applicable taxes |
Direct Debit/ ACH/ Cheque Bouncing Charges | Rs. 400/- per dishonor of cheque/ACH/ Direct Debit return per presentation plus applicable any taxes thereon |
Collection charges (manually) | Rs. 200/- per visit plus applicable any taxes |
Handling and updating loan accounts as per customer requests | Rs. 1,500/- plus applicable any taxes |
Documents Required for Education Loan in HDFC Bank
The documents required to process a student loan in HDFC may vary depending on the applicant’s profile. We have provided a list of mandatory documents required to apply for a student loan:
Section 1: Application form
Education loan application form with 2 passport-size photographs
Section 2: Basic documents for student and co-applicant or Guarantor
- Proof of Residence
-
- Electricity Bill
- Telephone Bill
- Voter ID Card
- Passport
- Ration card
- Bank account statement
- Aadhar
(2 different proofs if current and permanent residence are different)
- Identity Proof
-
- PAN Card
- Passport (if going abroad)
- Last 6 months’ personal and salary bank account statements.
- For co-applicants, it should show the salary credited or 1-year business transactions if self-employed.
- Asset & liability statement of the applicant
(assessed by the branch professional)
Only self-attested documents will be acceptable.
For a Collateral loan, the following documents are required:
- Original Registration receipt for the above agreement
- Encumbrance certificates as on date etc
- Previous Chain of Sale Deed establishing title
- Registered Sale Agreement Along With Society Share Certificate
- Latest Property tax bill along with receipts
- Approved building plan
- Allotment Letter By Authorized Govt. Authorities like MHADA, CIDCO/ Municipal Corporation, etc
- Property Title Deed
- NOC for a mortgage from society/builder
- Latest Maintenance bill along with Receipts issued by the builder/ society
Section 3: Academic documents of the applicant
- Academic mark sheets and certificates
- Fee structure as given by the college or university
- Entrance exam scorecard - TOEFL, IELTS, GRE, etc
- Admission proof for the course
Section 4: Co-applicant Income documents
- If Salaried:
Employers ID card
ITR of last 2 yrs
Recent salary slips (for the last 3 months)
Form 16 of the last 2 years. - If Self-employed:
The last 3 years balance sheet and Profit and loss account
ITR of last 3 yrs
Address proof of business
Section 5: Documents Needed for Immovable Properties:
- Property Title Deed and Registered Sale Agreement:
An original registration receipt for the above agreement is necessary.
- Allotment Letter from Municipal Corporation or Authorized Govt. Authority:
Required for properties allotted by authorities like MHADA, CIDCO, HUDA, etc.
- Chain Deed or Link Document or Encumbrance Certificate (EC):
This document is crucial and should cover a 30-year period. It displays property transaction history within this timeframe. If the property ownership exceeds 30 years, the sale deed of the previous transaction suffices.
- Latest Property Tax Copy or Electricity Bill:
Proof of property tax payment or recent electricity bill.
- Municipality Approved Building Plan or Plot Layout:
Copy of the approved building plan or plot layout by the municipality.
- Completion and Occupancy Certificates (For Constructed Properties):
Required for flats or constructed properties. Banks might accept under-constructed properties without these certificates, although it's uncommon. In such cases, a commencement certificate is necessary.
Documents Needed for Liquid Securities:
- Fixed Deposit (FD) as Security:
An FD in the same bank where the loan is applied. No additional documents are required.
- Insurance Policy as Security (Maturing Policy):
Documents needed are the policy paper and surrender value certificate.
- Gold as Security:
The gold needs to be deposited in the bank along with purchase proofs.
- Government Bonds:
Only the bond certificate is required.
Pledging liquid securities accelerates the education loan processing time as legal and valuation reports are unnecessary.
HDFC Bank Education Loan Insurance
HDFC Bank offers education loan insurance to help students and their families manage the financial risks associated with the loan. The student has to purchase the loan insurance separately.
Here's an overview of HDFC education loan insurance:
Coverage: HDFC education loan insurance provides coverage for the outstanding loan amount in case of unforeseen events such as the borrower's death, disability, critical illness, or job loss.
Types of Coverage:
-
- Term Insurance: This type of insurance provides coverage for the loan amount for a specified term. If the insured borrower passes away during the policy term, the insurance company pays off the remaining loan amount to HDFC Bank, ensuring that the borrower's family is not burdened with the loan liability.
- Credit Shield Insurance: Credit Shield insurance offers coverage against critical illnesses, accidental disability, and death.
- Premium Payment: Borrowers typically pay a premium for education loan insurance coverage, which may be added to the loan amount or paid separately as per the policy terms.
HDFC Bank Loan Margin Calculation
The loan margin is a percentage of the loan amount the student has to pay by himself. It is generally within 0-15% of the loan amount in most of the cases. Banks introduced this concept of loan margin to estimate your repaying capacity.
Let’s say you are planning to go abroad for your higher studies and want to take an education loan of 50 lakh rupees, then you will have to pay 7.5 lakh rupees from your pocket.
Loan amount | Loan margin |
Upto 4 lakh rupees | 0% |
Above 4 lakh rupees | Study in India 5% Study Abroad 15% |
HDFC Credila Education Loan Repayment Policies
HDFC Bank's Education Loan repayment policies typically involve the following:
- Moratorium Period: Repayment usually begins after a specified moratorium period, which covers the course duration and possibly an additional grace period post-completion, during which only simple interest is payable.
- Flexible EMIs: Borrowers can repay the loan through Equated Monthly Installments (EMIs), which can be customized based on the borrower's financial circumstances and repayment capacity.
- Repayment Tenure: The repayment tenure can extend up to 15 years, allowing borrowers ample time to repay the loan comfortably.
- Repayment Methods: HDFC Bank offers various repayment methods, including online payments, auto-debit instructions, post-dated cheques, and Electronic Clearing Service (ECS), to ensure convenient and timely repayment.
- Prepayment Option: Borrowers may have the option to prepay the loan partially or in full, subject to applicable terms and conditions.
- Late Payment Charges: HDFC Bank may levy late payment charges for overdue EMIs, so it's essential for borrowers to adhere to the repayment schedule to avoid additional costs.
How to apply for HDFC Bank Education Loan?
You can take an education loan from HDFC bank in two ways.There's an online and offline process. The offline process requires you to visit the nearest branch and get the paperwork done whereas, in the online process, you have to upload your docūments on our portal and we will negotiate with the lenders and get your loan sanctioned.
Offline Application Process:
- Visit the nearest HDFC branch
- Ask the loan officer about the student loan products offered by the bank
- Check your education loan eligibility as per the information provided
- Fill out the education loan application form
- Ask for the documents checklist to be submitted to the bank
- Visit the bank again to submit the documents and start the loan application process.
Online Application Process with WeMakeScholars:
Step 1: Reach out to WeMakeScholars by requesting a callback or filling out a common application form
Step 2: Give all your education loan details to your assigned financial officer over a call
After analyzing your loan profile, your financial officer will suggest the best lenders for your education loan.
Step 3: As per your eligibility, choose your lender and inform your Financial officer.
Step 4: Submit your documents either in the bank or upload them on the secure documents portal of WeMakeScholars online
Step 5: Your financial officer will be in constant touch with the lender's team to process your student loan and, if required, take follow-ups from them.
Step 6: Take your loan sanction letter from the bank within 7 days of submitting the document, if taking a loan from a private bank or NBFC
Why and How to transfer your education loan to HDFC Bank?
HDFC allows students to transfer their current student loans to HDFC, offering benefits like -
- Easy loan conditions
- Student-friendly policies
- Lower interest rates
- Better repayment plans
- Broader coverage.
To transfer, students need to collect proof of the pending loan, contact WeMakeScholars for assistance, and submit documents to HDFC.
Upon approval, HDFC pays off the previous lender, and the same amount is sanctioned as a new education loan with revised terms as per HDFC's student loan policy.
HDFC Bank Loan EMI calculator
A loan calculator is a tool used to estimate the monthly payments, total interest, and total repayment amount for a loan. Users input details such as the loan amount, interest rate, and loan term, and the calculator computes the monthly payments based on this information. It helps borrowers understand the financial implications of taking out a loan and allows them to compare different loan options. To understand how HDFC bank loan EMI is calculated:
Here is an example of how to calculate the EMI for an HDFC education loan:
Let’s consider that you have taken a loan of Rs. 15 lakhs for a course period of 24 months. The interest rate is 10.5% per annum and the moratorium period is 12 months. You will be paying SI during the moratorium period within a repayment period of 10 years
Here’s the calculation for it:
Total amount payable = Loan amount + (Loan amount * Interest rate * Moratorium period / 12)
Total amount payable = 15,00,000 + (15,00,000 * 10.5 * 12 / 100)
Total amount payable = Rs. 18,90,000
Calculate the EMI using the following formula:
EMI = [P x R x (1+R)N]/[(1+R)N-1]
Where,
- P = Principal amount (loan amount)
- R = Rate of interest (monthly)
- N = Tenure (in months)
Monthly interest rate = Annual interest rate / 12
Monthly interest rate = 10.5 / 100/ 12 = 0.00875%
Tenure = Number of years given to you for repayment (in months)
Tenure = 120 months (10 years)
EMI = [15,00,000 x 0.00875% x (1+0.00875%)132]/[(1+0.00875%)132-1]
EMI = Rs. 24,099
So, the EMI for your HDFC education loan would be Rs. 24,099
The education loan repayment period in HDFC is 15 years, which starts immediately after the moratorium period ends.
You have 15 years to pay back your education loan with HDFC, and this starts right after the moratorium period.
They give students a letter that says how much interest they're paying, the repayment terms, The EMI, the Total amount payable, and other important stuff about repaying the loan.
You can pay every month until the loan is fully paid, but there are also ways to finish paying earlier:
- Pick a shorter tenure to repay.
- Pay extra money or make partial payments.
- Check if you can move your loan to another place
Interest Subsidy Schemes in HDFC Bank
The Indian government has three interest subsidy schemes that modify the rate of interest for education loans in HDFC banks to help students pursuing higher education:
- Central Government Interest Subsidy Scheme (CSIS): It provides interest subsidies on educational loans for economically weaker students in India. The subsidy is for loans without collateral, capped at Rs. 7.50 lakhs, and the family income limit is Rs. 4.50 lakhs.
- Padho Pardesh Scheme: Under the Ministry of Minority Affairs, it gives interest subsidies during the moratorium period for economically weaker students from minority communities pursuing their higher studies. The family income limit for this scheme is Rs. 6 lakhs.
Note: The scheme has been discontinued by the authorities from 1st April 2022, but the beneficiaries who have applied to take benefit under the scheme till 31st March 2022 will continue to benefit from the interest subsidy.
- Dr. Ambedkar Interest Subsidy Scheme for OBC and EWS Students: Launched by the Ministry of Social Justice, it offers interest rate subsidies to eligible OBC and economically weaker students studying abroad. The family income limit is Rs. 8 lakhs, and OBC category proof is required.
FAQs:
-
What is the interest rate for an education loan in HDFC?
-
What is the eligibility criteria of hdfc bank education loan?
-
What are the documents required for an education loan in HDFC Bank?
-
What is the procedure of education loan in HDFC Bank?
-
Is there any product for HDFC education loans for abroad?
-
What is HDFC education loan interest rate?
-
Can I get a non-collateralized education loan from hdfc bank?
NEWS
HDFC Ltd, a prominent financial institution, has recently finalized a significant deal to sell 90% of its ownership in HDFC Credila, its education loan subsidiary. The agreement involves BPEA EQT and CrysCapital Group, who will acquire the majority stake for a substantial amount of Rs 9,060 crore. This development was confirmed by HDFC through an official filing with the exchange.
As a result, HDFC Credila will no longer operate as a subsidiary of HDFC, its shareholding will drop below 10% of the total issued and paid-up share capital of HDFC Credila.
This deal marks a significant step in HDFC's strategic direction and paves the way for potential growth opportunities for HDFC Credila under the new majority ownership.
Last Updated - 20/06/2023
HDFC Bank, a prominent financial institution in India, has recently announced an upward adjustment in its benchmark MCLR, leading to potential effects on loan interest rates. The revised rates, which came into effect on June 7, 2023, have been raised by up to 15 basis points, as confirmed by the HDFC Bank website.
The overnight MCLR, an essential rate for short-term loans, has experienced a 15 basis point increase, reaching 8.10 percent. Additionally, the one-month MCLR has risen by 10 basis points, resulting in a new rate of 8.20 percent. Similarly, the three-month MCLR has witnessed a 10 basis point hike, settling at 8.50 percent.
It is important to note that the impact of these revised rates will not be applicable to HDFC home loan borrowers, as most mortgages are obtained through HDFC Ltd., the parent company of HDFC Bank.
Borrowers affected by this revision will likely experience an increase in their Equated Monthly Installments (EMIs) as a result of the higher interest rates. The adjustment reflects the bank's response to prevailing market conditions and the need to manage its lending portfolio effectively.
Last updated on - 10/07/2023
HDFC Bank, India's largest private lender, has become the first commercial bank to connect the United Payment Interface (UPI) with the Central Bank Digital Currency (CBDC). This achievement follows the recent announcement by the Reserve Bank of India (RBI) and marks a major step in financial innovation.
By launching a UPI QR code that integrates seamlessly with India's CBDC, HDFC Bank simplifies digital transactions. Customers can now use their CBDC wallet with a single QR code, eliminating the need for multiple scans. Merchants benefit too, as they only need to display one QR code without changing their existing codes.
This move aims to boost the usage of the Digital Rupee currency, with HDFC Bank facilitating Digital Rupee payments in key cities like Mumbai, Delhi, and Bengaluru. As India already records 310 million daily UPI transactions, the QR code interoperability between CBDC and UPI holds immense potential for revolutionizing digital payments.
HDFC Bank's pioneering efforts demonstrate its commitment to driving financial innovation and creating a user-friendly financial landscape. The seamless integration of CBDC and UPI sets the stage for a future where customers and merchants can harness the transformative power of digital currencies.
Last Updated - 13/07/2023
Our Education Loan team will help you with any questions
WeMakeScholars- supported by IT Ministry, Govt. of India.
Mafiyan
Harish Dammannagari Scholarship Expert
Hello Mafiyan,
Yes, typically, a student can cancel an education loan after receiving the sanctioned letter from the bank but before the disbursement of funds. However, the specific process and requirements for cancellation may vary depending on the policies of the bank or financial institution that issued the loan. The student needs to contact the bank or lender promptly to inquire about the cancellation process and any potential consequences or fees associated with cancelling the loan. In general, the processing fee (PF) is usually non-refundable in such situations.
Himanshu Juneja
Paravesh Saireddy Scholarship Expert
Shirly Mathew Poyyakaran
Paravesh Saireddy Scholarship Expert