HDFC Bank Education Loan For Abroad Studies

Higher education abroad is a dream for many, and unfortunately, it can be hard to get the funding. HDFC Bank, however, comes to the rescue and lends Abroad Education Loans that are tailor-made to help students accomplish their academic dreams without worrying about finances. The HDFC bank abroad education loans are known to offer competitive interest rates, flexible repayment options, and quick processing to help you set your education and career goals.

The HDFC bank education loan for abroad studies can be divided into two types based on the collateral requirement for the loan. Let's look at the HDFC bank abroad education loan with collateral:

The HDFC education loan for abroad without collateral does not require applicants to pledge any collateral as security for the loan amount. These loans are offered based on the income and credit score of the co-applicant.

HDFC Credila Education Loan for Abroad Studies

The bank offered HDFC Credila education loan for abroad studies to students through its student loan financing arm, Credila. The HDFC Credila education loan for abroad studies are a popular option among students for its competitive interest rates and flexible terms. But then the bank decided to sell its stake in Credila due to a merger. The decision was a result of regulatory requirements and ease of operations. Post the historic merger of HDFC Limited with HDFC Bank in July 2023, the Reserve Bank of India (RBI) asked HDFC Bank to reduce its stake in HDFC Credila to 10%. It was a need to be in line with banking regulations and to reduce their dependence on non-banking financial activities.  

To fit these guidelines, they are selling a 90 percent stake in HDFC Credila to private equity investors, BPEA EQT, and ChrysCapital. It enables them to concentrate on providing direct loan education while growing Credila as an independent organization under its new leadership. Credila continues to have a strategic tie with HDFC Bank through board representation and a 9.99% non-controlling stake.  

Read this article about - Why HDFC Bank Reduced Stake in Credila and its impact on Education Loans, to know more.

The HDFC education loan interest rate for abroad studies varies depending on several factors, including the collateral availability, loan amount, the student profile, the co-applicant profile, and the repayment tenure. The interest rate on HDFC student loans for abroad starts from 10.5%. However, students planning to obtain a study abroad loan from HDFC should keep in mind that the HDFC education loan interest rate for abroad studies will be floating. This means that the HDFC abroad education loan interest rates don’t remain constant and change according to the bank and the repo rate.

Students can use an HDFC education loan for abroad studies to cover various expenses associated with their education, such as:

• The Tuition fees 
• The living expenses
• Purchase of a laptop
• Purchase of study materials and course-related equipment
• Uniform purchasing cost
• Cautionary deposits
• Travelling cost
• One-way airfare
• Accommodation expenses

The courses eligible for an HDFC bank abroad education loan are:

• MS
• MBA
• MBBS/MD – Only Indian Colleges
• Executive Management Courses (Working Executives)
• Any Other Courses – depending on the student's profile

The processing fees charged by HDFC bank on student loans for India and abroad are calculated as per the following table:

Apart from this HDFC Bank charges the following fees from the students:

These processing fees and other additional charges mentioned above are charged by the HDFC bank and not WeMakeScholars, our services are totally free of cost for students. WeMakeScholars is a government of India-funded, leading education loan partner, supported by the Ministry of Electronics and Information Technology, under the Digital India Campaign. 

If you are looking forward to applying for an education loan or want to check your education loan eligibility, request a callback or fill out the eligibility form at WeMakeScholars.

Documents required to get an HDFC education loan for abroad studies are given here. Check out the list of mandatory documents to start your loan process:

Section 1: Application Form 

2 passport-size photographs of applicant and co-applicant with the online application form (in hardcopy) filled through the WeMakeScholars website.

Section 2: Photo ID card of Applicant and Co-Applicant (Any one)

• Driving License
• Permanent Account Number (PAN) Card
• Passport
• Aadhaar Card
• Voter's ID Card

Section 3: Basic Documents for Student and Co-applicant or Guarantor

• Bank statements last 8 months (Personal/ Salary). For co-applicant, a credited salary should be mentioned. if salaried or business transactions of 1 year if self-employed.
• Statement of personal asset & liability (assessed by the branch professional)
• Proof of professional receipts credited every month.
• Address proof – Electricity Bill/ Voter ID Card/ Bank statement of account/ Passport/ Telephone Bill/ Aadhar card/ Ration card. 

Only documents attested by the applicant themselves will be accepted

Section 4: Applicant's Academic Documents

• Entrance exam score certificate - GRE/GMAT/TOEFL/IELTS, etc. (whichever is applicable)
• Fee structure with payment schedule as given by the university or college 
• Marksheet and score certificates of - 10th, 12th, and Degree
• Scholarship documents (if applicable)
• Admission proof for the course (mentioning the total duration of the course)

Section 5: Income Documents of Co-applicant

If Salaried

• Last 2 years details according to Form 16 
• ITR proof of last 2 years
• ID card of the employer 
• Salary slip of the co-applicant on company’s letterhead of last 3 months
• Any Other Income Proof That is Not Reflected in the Above Documents

If Self-employed

• Address proof of the business 
• Provisional or real financial statements of the last 2 years, certified by the CA.
• If self-employed then the Profit & Loss account and balance sheet of the past 3 years
• Last 2 year’s ITR
• Employee’s office address proof
• Income proof which is not mentioned in the above documents can also be shown

Section 6: Other Documents

• Declaration from the co-applicants side stating that all other leftover expenses, except for those covered in the loan will be paid by them as per the format provided by your Financial officer at WeMakeScholars.
• The legal agreement with the co-applicant and student in the standard format, which your financial officer will provide you.

Section 7: Additional Documents (if applicable)

• Proof of payments made, (if any) previously in the last 6 months.
• Gap certificate if the students have had any break in studies on Rs. 100 stamp paper. The format will be provided by WeMakeScholars Financial officer
• Loan account statements of any pending loans in the past 1 year.

Section 8: Collateral Documents (Optional)

• Title deed of property
• Registration receipt in original for the above agreement
• Recent bill of maintenance along with proof issued by builder/ society.
• Allotment Letter By Municipal Corporation / Authorized Govt. Authorities like CIDCO, MHADA, etc. 
• Previous chain of sale deed establishing title
•  Latest tax receipts of the property
• Sale agreement of registration along with society share certificate
• NOC for the mortgage from society/builder,
• Plan of building approved by the responsible authority
• Encumbrance certificates as on date etc

However, each state has different document requirements, ask your financial officer to provide you with a specific documents checklist according to your loan profile requirement, and apply for an HDFC education loan for abroad studies. 

Students will be charged interest during the moratorium period. The repayment duration is upto 14 years including the moratorium period, within which students will have to repay the entire loan amount.

However, students may choose to repay the loan even earlier, by implying the following strategies:

• Prepayment or Part Payment
• Opting for shorter repayment periods
• Transfer of education loan

We are specialists in navigating through all of the additional ins and outs of the process of getting an education loan approved. As a result, we suggest that you process your student loan through WeMakeScholars.

Request a callback or fill out the common application form to reach out to your financial officer at WeMakeScholars, and get ready to crack the best deal for your higher education loan.

To apply for an HDFC bank abroad education loan , the following are the two ways

Offline Application Process

• Visit the nearest HDFC Bank branch and ask the loan officer about their education loan products
• Decide and choose the product as per your eligibility criteria, under which you want to apply for an education loan
• Fill out the loan application form and ask for the list of documents required
• Visit the bank again with all the documents listed by the loan officer, to finally get your loan process started.

Online Application Process

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

Your assigned financial officer will study your loan profile and suggest you the best lenders, to get your loan approved.

Step 3: As per your eligibility choose your preferred lender and tell your financial officer.

Step 4: As per the documents checklist sent to you by your financial officer, submit all the documents to the bank, to start your HDFC bank education loan for abroad studies process.

Step 5: Your financial officer will keep a track of the progress on your loan file, if required call them to take follow-ups.

Step 6: Within 15-20 days, you can collect your sanction letter if taking an education loan with collateral, if taking an HDFC education loan for abroad without collateral, then you can receive the sanction letter within 7 days. 

The process will not be as smooth if you approach the banks directly to process your education loan, there will always be issues like:

• Missing documents checklist
• A heap of documentation
• Multiple visits to the banks, delay the process
• The discrepancy in legal and valuation reports
• Unavailability of correct information
• Insufficient information about loan eligibility criteria

To avoid these issues while processing your education loan application, choose WeMakeScholars as your education loan application partner.

1. Shorter Processing Time: Your loan gets approved within 6-7 days, if taking it from a private bank or NBFC and within 15-20 days if taking from a public bank with collateral. In both cases processing time is 50% less than what banks usually take.
2. Better Interest Rates: An interest rate discount of 0.5% to 2% is offered to all the students who process their education loan with WeMakeScholars, as we are HDFC Banks largest education loan partner
3. Expert Guidance: As per the analysis of your loan profile from all perspectives your financial officer will guide you to choose the best lenders as per bank policies and  your eligibility.
4. Digitized Application Process: Online loan application process makes it easy for students to apply for an education loan anytime from anywhere. Also, our  documents portal is to reduce the stress of going to the banks multiple times just to submit the documents.
5. Negotiation Support: We provide support to negotiate with the banks in terms of loan conditions and rate of interest, to make it easy for you to process.
6. End-to-end Support: Your financial officer will stay with you throughout the loan sanctioning process and even at the time of disbursement to resolve your post-sanction issues, if any.
7. Tax Benefits: We help you to save and take tax benefits on your education loan, by informing you about the tax saving schemes of the Income tax department like Section 80E, 80C, etc, along with the tax collected at source (TCS).
8. Free-of-cost Services: We are funded by the IT Ministry, under the Digital India Campaign, and all our prime loan sanctioning services are free of cost for all the students.
9. Cashback Offer: You can get up to Rs 3,000 as cashback at the time of your disbursement from us. 

To fast-track your education loan process, visit WeMakeScholars and apply online for an education loan!