HDFC Bank Education Loan

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

1. • 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 30 years. 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.

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.

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