About HDFC Education Loan
HDFC Bank offers a full package of higher education loans for students studying in India and overseas. The loans can be used to pay tuition, living expenses, and other educational expenses. With these, HDFC education provides financial backing to students from different backgrounds.
Education is a high-yield investment that can be a huge financial burden for students. It can occasionally force many students to abandon their career and educational goals. Considering the significance of education and the monetary problems associated with it, HDFC Bank has endeavored to provide higher education to as many as possible. The HDFC education loan program is designed to help students who cannot afford their studies.
HDFC Education Loan Interest Rate
HDFC is one of the top private sector banks in India that provides education loans with interest rates as low as 9.75%. It also offers loan sums up to ₹1 crore with collateral and up to ₹80 lakhs without it to help students fulfill their dreams of pursuing higher education both domestically and overseas. HDFC Bank provides education loans through its NBFC subsidiary, HDFC Credila, rather than directly.
HDFC offers different education loan schemes to students who want to pursue education in both India and abroad.
You can also check banks that offer lowest interest rates on education loans.
Features of HDFC Education Loan
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HDFC Bank Education Loan Schemes
HDFC offers Indian students access to many education loan schemes to fund their education for studies within and outside of India.
HDFC Education Loan Scheme to Study in India
For students who want to study in India, HDFC education loan offers them access to the following features:
HDFC Education Loan with Collateral
HDFC Education Loan without Collateral
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HDFC Education Loan for Abroad
Besides India, HDFC Credila education loan also provides student loans to aspirants who want to pursue education abroad with features:
HDFC Education Loan with Collateral
HDFC Education Loan without Collateral
HDFC Education Loan Eligibility
The qualifications required for educational loans at HDFC Bank can differ based on the specific loan type. Below are the general qualifications often necessary for these loans:
Citizenship:
The borrower must be an Indian citizen. Eligibility requirements for Non-resident Indians (NRIs) might vary and include conditions related to age, the course pursued, and the educational institution. In these situations, NRIs are required to assign a power of attorney to a close family member residing in India, such as parents, parents-in-law, spouse, siblings, or children.
Age Limit:
Typically, the applicant must be between the ages of 16 and 35. This range may adjust depending on the educational program and the bank's guidelines.
Academic Requirements:
The borrower must have gained admission to an accredited educational program or institution, whether it's an undergraduate, postgraduate, or diploma level, in India or abroad. Admission should be through an entrance exam or based on academic merit.
Recognized Institutions and Courses:
HDFC Bank generally offers loans for courses at institutions approved by UGC, the Government, AICTE, AIBMS, ICMR, etc.
Eligible Courses:
Certain courses like MS, MBA, MBBS/MD, and Executive Management Courses for working professionals typically qualify for funding. Eligibility for other specialized courses may depend on additional factors such as the co-applicants income and the collateral offered.
HDFC Education Loan Documents Required
During the application process for a student loan, an HDFC education loan necessitates submitting a set of important documents, which include:
Academic
- Marksheets of SSC, HSC, and Graduation
- Institute Admission Letter with fee break-up
KYC
- Identify proof
- Age proof
- Signature Proof
- Residence Proof
Others
- Completed Application Form
- Latest Photograph (Signed Across)
To obtain a collateral loan, please submit the necessary paperwork including:
- The original registration receipt corresponds to the aforementioned agreement.
- Current encumbrance certificates.
- A succession of previous sale deeds that verify ownership.
- The finalized sale agreement coupled with the society's share certificate.
- The most recent property tax statement and accompanying receipts.
- The sanctioned blueprint of the building.
- Allocation letters from recognized government bodies such as MHADA, CIDCO, or the Municipal Corporation.
- The deed establishes ownership of the property.
- A no-objection certificate (NOC) for the mortgage, is issued by the housing society or the builder.
- The latest bill for maintenance fees along with receipts provided by the builder or housing society.
Educational Records of the Applicant:
- Grade transcripts and diplomas
- Tuition and fees schedule as specified by the institution
- Scores from standardized tests such as TOEFL, IELTS, GRE, etc.
- Confirmation of course enrollment
Financial Documents for Co-applicant
For Salaried Individuals:
- Company identification card
- Income Tax Returns from the past two years
- Pay stubs from the past three months
- Form 16 from the past two years
For Self-Employed:
- Financial statements, including balance sheets and profit & loss accounts, from the last three years
- Income Tax Returns for the last three years
- Proof of business location
HDFC Education Loan Processing Fees and Charges
HDFC Credila provides an unsecured loan of ₹80 lakhs and a variety of education loan choices with interest rates beginning at 9.75%. These loans often come with pre-determined charges and processing fees. HDFC Credila levies a processing fee of 0.5% to 1% + GST.
Unlike other banks or NBFCs, HDFC Credila doesn't levy fees like property evaluation. However, it imposes an EMI return charge of ₹450.
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HDFC Credila Education Loan
HDFC Bank, a prominent private sector bank in India, provides education loans through its NBFC subsidiary, HDFC Credila, to help students pursue higher education domestically and internationally. These loans feature interest rates beginning at 9.75% and can go up to 1 Crore with collateral and up to 80 Lakhs without collateral.
HDFC Bank in association with Credila, offers tailored education loans to students intending to be in different training courses abroad in over 4000 universities across 36 countries. HDFC offers competitive interest rates and repayment and loan tenures for people who want to study in their desired study program in another country.
Additionally, the HDFC Credila education loan scheme also allows students to have a loan sanctioned in advance before their admissions are confirmed. It makes their planning and preparation for admission smoother and more effective.
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HDFC Bank Education Loan College List
All the students applying for HDFC student loans have the significant advantage of applying to different colleges and institutes. The education loan scheme provides funding for reputed colleges or institutes. The HDFC bank education loan college list is long and includes:
Benefits of HDFC Education Loan
From funding education to easier repayment, HDFC Credila education loan offers a range of benefits to students, which primarily include:
- Tax Benefits: Education loan interest of Section 80E of the Income Tax Act in India is entitled to a tax deduction. The tax exemption is intended to serve as a financial relief to those who borrow to go through higher education for themselves or their relatives.
- Pay after Education: EMIs can be paid after the course ends, so you will not be required to arrange for repayment immediately. Above all, you may use the repayment schedule to plan a budget as a family in the short and long run.
- Covers Extensive Expenses: Study abroad credits cover tuition, board, travel expenses, textbooks, and a student laptop, as well as everything else. Therefore, these expenses do not fund extra financial obligations.
- Easy Repayment Terms: HDFC Bank charges an affordable interest rate on education loans, and there are preferential rates for reputed institutions and universities. HDFC Bank prides itself on this freedom of collateral and co-borrower terms because loan repayment should be a painless process.
Expenses Covered by HDFC Education Loan
The opportunity for students to obtain loan approval before the admissions process is one of the main advantages of HDFC Credila's education loans. The other advantage is the long list of expenses it covers.
- Educational Fees: The loan covers the tuition, lab, and examination fees set by the college or institution.
- Housing and Living Costs: The loan covers the accommodation and other living expenses that include everyday necessities, local transport, and miscellaneous costs.
- Transportation Expenses: An HDFC education loan includes the cost of air travel to your new educational location.
- Additional Costs: The education loan extends to cover supplementary costs associated with your studies, such as buying a laptop, books, and magazines, among others.
Interest Subsidy Schemes in HDFC Bank
The HDFC education loan is also eligible for interest subsidy. You can ease the student loan repayment with the following subsidies:
- Central Government Interest Subsidy Scheme (CSIS): It contributes to the interest subsidies on education loans for India's economically weaker students. The subsidy is for loans that do not call for collateral and is finalized at ₹7.50 lakhs rupees, while the family's total income limit is ₹4.50 lakhs.
- Padho Pardesh Scheme: The Ministry of Minority Affairs is implementing this scheme. Under it, interest is waived during the moratorium period for economically weaker minority students pursuing higher studies. The income limit of this scheme at the family level is ₹6 lakhs.
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HDFC Education Loan Insurance
To help you and your family manage the financial risks, the bank offers HDFC education loan insurance. The loan insurance must be purchased individually by the student. In the event of unanticipated circumstances like the borrower's death, disability, serious sickness, or job loss, HDFC education loan insurance will pay the remaining balance of the loan.
Types of Coverage:
- Credit Shield Insurance: Credit Shield insurance offers coverage against critical illnesses, accidental disability, and death.
- Term Insurance: This 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.
- 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 Education Loan Margin Calculation
The loan margin is a percentage of the loan amount the students have to pay themselves. It is generally within 0-15% of the loan amount in most of the cases. Banks introduced the loan margin to estimate your repaying capacity. If you take an education loan of ₹50 lakh rupees, then you will have to pay ₹7.5 lakh rupees from your pocket.
HDFC Education Loan Repayment Policies
HDFC loan repayment policies enable the student to focus on their studies by giving them relief with convenient repayment policies. These loan repayment policies involve:
- Moratorium Period: Repayment starts following a predetermined moratorium period that lasts for the length of the course. It can also include a post-completion grace period during which just simple interest is due.
- Flexible EMIs: Depending on your financial situation and ability to repay the loan, you can choose from a variety of EMI options.
- Repayment Tenure: You will have plenty of time to conveniently repay the loan within the maximum 15-year repayment term.
- Repayment Methods: To guarantee easy and prompt repayment, HDFC Bank accepts online payments, post-dated checks, auto-debit instructions, and Electronic Clearing Services (ECS).
- Prepayment Option: Subject to the relevant terms and circumstances, you can choose to pay back the loan in full or in part early.
- Late Payment Charges: You must follow the repayment plan in order to prevent incurring additional expenses since HDFC Bank may charge late fees for past-due EMIs.
How to Transfer Your Loan to HDFC
Students can transfer their existing student loans to HDFC, which offers advantages like:
- Simple loan terms
- Policies that are advantageous to students
- Reduced rates of interest
- Improved repayment schedules
- Broader reach
Students must gather documentation of the outstanding loan to transfer their loan to HDFC. You can also get help from Propelld for easy loan transfer. After acceptance, HDFC repays the previous lender and uses the money to approve a new education loan with updated conditions in accordance with HDFC's student loan policy.
Application Process for HDFC Education Loan
There are two ways you can apply for an education loan from HDFC Bank: online and offline.
Offline
- Step 1: Visit the HDFC branch near you.
- Step 2: Inquire the student loan officer about the education loan products.
- Step 3: Check the HDFC education loan eligibility.
- Step 4: Collect the student loan application form from the agent and submit it after carefully filling it.
- Step 5: Follow the education application loan process.
HDFC Education Loan EMI Calculator
Education loan is your first financial commitment and thus requires careful planning and consideration of repayment terms.
An Equated Monthly Installment (EMI) calculator simplifies this process by estimating your monthly payments. You input the total loan amount borrowed, the tenure, the interest rate, moratorium period, if any, and the calculator gives you the total amount that you need to repay every month once your repayment starts.
Mathematically , EMI is calculated using the 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)
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If you wish to experience a hassle free and quicker loan process, Propelld can be your reliable companion. Propelld streamlines the loan application process by offering individualized support and knowledgeable direction. We will also assist you in navigating the intricacies of loan alternatives, documentation, and application procedures.
- Step 1: Get in touch with Propelld's financial officer by requesting a callback or filling up the SBI education loan form.
- Step 2: Share your needs and details with your financial officer.
- Step 3: Gather all the documents and upload all of them online on our portal.
- Step 4: After analyzing your eligibility, your financial officer will connect you to the best education loan lender.
- Step 5: Your financial officer will take care of the process from here.
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