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Discover HDFC Education Loan 2024: Learn about eligibility, interest rates, no-collateral options and loans for studying abroad. Apply now!

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.

Features of HDFC Education Loan

Features Details
Loan Amount Up to ₹1.5 Cr
Rate of Interest From 9.75%
Processing Fees Nil. Pay no hidden charges.
Collateral HDFC Bank Fixed Deposit, Residential Property, and Insurance Policies
Moratorium Period 1 year or 6 months
Repayment Tenure Up to 15 years
Processing Fee 0% for India and 1% for abroad

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

Parameters Details
Loan Limit Up to ₹1 Crore
Interest Rate From 9.75%
Moratorium Period Course duration + 1 year or 6 months
Repayment Duration Up to 15 years
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

HDFC Education Loan without Collateral

Parameters Details
Loan Limit Up to ₹50 lakh
Interest Rate From 11%
Moratorium Period Course duration + 12 months
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

Click here for Higher Chances of Approval than Banks - Propelld Education Loan

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

Parameters Details
Loan Limit Up to ₹1 Crore
Interest Rate From 9.75%
Moratorium Period Course duration + 1 year
Repayment Duration Up to 14 years, including the moratorium period
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

HDFC Education Loan without Collateral

Parameters Details
Loan Limit Up to ₹45 lakh
Interest Rate From 9.75%
Moratorium Period Course duration + 1 year or 6 months
Repayment Duration Up to 14 years, including the moratorium period
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

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

  1. Identify proof
  2. Age proof
  3. Signature Proof
  4. Residence Proof

Others

  • Completed Application Form
  • Latest Photograph (Signed Across)

To obtain a collateral loan, please submit the necessary paperwork including:

  1. The original registration receipt corresponds to the aforementioned agreement.
  2. Current encumbrance certificates.
  3. A succession of previous sale deeds that verify ownership.
  4. The finalized sale agreement coupled with the society's share certificate.
  5. The most recent property tax statement and accompanying receipts.
  6. The sanctioned blueprint of the building.
  7. Allocation letters from recognized government bodies such as MHADA, CIDCO, or the Municipal Corporation.
  8. The deed establishes ownership of the property.
  9. A no-objection certificate (NOC) for the mortgage, is issued by the housing society or the builder.
  10. The latest bill for maintenance fees along with receipts provided by the builder or housing society.

Educational Records of the Applicant:

  1. Grade transcripts and diplomas
  2. Tuition and fees schedule as specified by the institution
  3. Scores from standardized tests such as TOEFL, IELTS, GRE, etc.
  4. Confirmation of course enrollment

Financial Documents for Co-applicant

For Salaried Individuals:

  1. Company identification card
  2. Income Tax Returns from the past two years
  3. Pay stubs from the past three months
  4. 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 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.

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:

S P Jain School of Global Management (Dubai)
National University of Singapore
The University of Manchester (UK)
Schulich School of Business, York University
Coventry University (UK)
Centennial College (Canada)
Concordia University (Canada)
Nanyang Technological University (Singapore)
The University of Sheffield (UK)
Chemnitz University of Technology (Germany)
Asian Institute of Management (Philippines)
La Trobe University (Australia)
Delft University of Technology ( Tu Delft ) (Netherlands)
University of Warwick (UK)
Sheffield Hallam University (UK)
University of Leeds (UK)
University of Melbourne (Australia)
London Business School (UK)
University of Glasgow (UK)
University of Duisburg Essen (Germany)

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.

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.

  1. Educational Fees: The loan covers the tuition, lab, and examination fees set by the college or institution.
  2. Housing and Living Costs: The loan covers the accommodation and other living expenses that include everyday necessities, local transport, and miscellaneous costs.
  3. Transportation Expenses: An HDFC education loan includes the cost of air travel to your new educational location.
  4. 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.

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.

Loan Amount Loan Margin
Up to ₹4 lakh 0%
Above ₹4 lakh Study in India: 5%
Study Abroad: 15%

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:

  1. 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.
  2. Flexible EMIs: Depending on your financial situation and ability to repay the loan, you can choose from a variety of EMI options.
  3. Repayment Tenure: You will have plenty of time to conveniently repay the loan within the maximum 15-year repayment term.
  4. Repayment Methods: To guarantee easy and prompt repayment, HDFC Bank accepts online payments, post-dated checks, auto-debit instructions, and Electronic Clearing Services (ECS).
  5. Prepayment Option: Subject to the relevant terms and circumstances, you can choose to pay back the loan in full or in part early.
  6. 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:

  1. Simple loan terms 
  2. Policies that are advantageous to students 
  3. Reduced rates of interest 
  4. Improved repayment schedules 
  5. 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.

Apply for Online HDFC Education Loan with Propelld

Propelld streamlines the entire student loan application process for you. Our user-friendly digital platform provides varied loan options where we work with partner schools. Take advantage of flexible repayment options and competitive rates to help you finance your student experience finely. Apply with Propelld study loans!

  • Step 1: Get in touch with Propelld by submitting a standard application form or asking for a callback.
  • Step 2: Call your designated financial officer and provide all the information regarding your student loan. Your financial officer will recommend the best lenders for your student loan after reviewing your loan profile.
  • Step 3: Choose your lender and notify your financial officer based on your eligibility.
  • Step 4: Upload your papers to the secure Propelld online documents site.
  • Step 5: Your financial officer will communicate closely with the lender's team to process your student loan and, if necessary, obtain follow-ups.
  • Step 6: If you're taking out a loan from a private bank or NBFC, get your loan sanction letter from the bank within 7 days of filing the paperwork.

HDFC Education Loan - Eligibility & Interest Rates (2024)

Raghuvamshi Kanukruthi
May 4, 2024
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Shivam Bhardwaj
March 15th 2022

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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.

Features of HDFC Education Loan

Features Details
Loan Amount Up to ₹1.5 Cr
Rate of Interest From 9.75%
Processing Fees Nil. Pay no hidden charges.
Collateral HDFC Bank Fixed Deposit, Residential Property, and Insurance Policies
Moratorium Period 1 year or 6 months
Repayment Tenure Up to 15 years
Processing Fee 0% for India and 1% for abroad

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

Parameters Details
Loan Limit Up to ₹1 Crore
Interest Rate From 9.75%
Moratorium Period Course duration + 1 year or 6 months
Repayment Duration Up to 15 years
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

HDFC Education Loan without Collateral

Parameters Details
Loan Limit Up to ₹50 lakh
Interest Rate From 11%
Moratorium Period Course duration + 12 months
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

Click here for Higher Chances of Approval than Banks - Propelld Education Loan

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

Parameters Details
Loan Limit Up to ₹1 Crore
Interest Rate From 9.75%
Moratorium Period Course duration + 1 year
Repayment Duration Up to 14 years, including the moratorium period
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

HDFC Education Loan without Collateral

Parameters Details
Loan Limit Up to ₹45 lakh
Interest Rate From 9.75%
Moratorium Period Course duration + 1 year or 6 months
Repayment Duration Up to 14 years, including the moratorium period
Co-applicant Parents, Parents-in-law, Spouse, and Siblings

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

  1. Identify proof
  2. Age proof
  3. Signature Proof
  4. Residence Proof

Others

  • Completed Application Form
  • Latest Photograph (Signed Across)

To obtain a collateral loan, please submit the necessary paperwork including:

  1. The original registration receipt corresponds to the aforementioned agreement.
  2. Current encumbrance certificates.
  3. A succession of previous sale deeds that verify ownership.
  4. The finalized sale agreement coupled with the society's share certificate.
  5. The most recent property tax statement and accompanying receipts.
  6. The sanctioned blueprint of the building.
  7. Allocation letters from recognized government bodies such as MHADA, CIDCO, or the Municipal Corporation.
  8. The deed establishes ownership of the property.
  9. A no-objection certificate (NOC) for the mortgage, is issued by the housing society or the builder.
  10. The latest bill for maintenance fees along with receipts provided by the builder or housing society.

Educational Records of the Applicant:

  1. Grade transcripts and diplomas
  2. Tuition and fees schedule as specified by the institution
  3. Scores from standardized tests such as TOEFL, IELTS, GRE, etc.
  4. Confirmation of course enrollment

Financial Documents for Co-applicant

For Salaried Individuals:

  1. Company identification card
  2. Income Tax Returns from the past two years
  3. Pay stubs from the past three months
  4. 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 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.

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:

S P Jain School of Global Management (Dubai)
National University of Singapore
The University of Manchester (UK)
Schulich School of Business, York University
Coventry University (UK)
Centennial College (Canada)
Concordia University (Canada)
Nanyang Technological University (Singapore)
The University of Sheffield (UK)
Chemnitz University of Technology (Germany)
Asian Institute of Management (Philippines)
La Trobe University (Australia)
Delft University of Technology ( Tu Delft ) (Netherlands)
University of Warwick (UK)
Sheffield Hallam University (UK)
University of Leeds (UK)
University of Melbourne (Australia)
London Business School (UK)
University of Glasgow (UK)
University of Duisburg Essen (Germany)

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.

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.

  1. Educational Fees: The loan covers the tuition, lab, and examination fees set by the college or institution.
  2. Housing and Living Costs: The loan covers the accommodation and other living expenses that include everyday necessities, local transport, and miscellaneous costs.
  3. Transportation Expenses: An HDFC education loan includes the cost of air travel to your new educational location.
  4. 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.

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.

Loan Amount Loan Margin
Up to ₹4 lakh 0%
Above ₹4 lakh Study in India: 5%
Study Abroad: 15%

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:

  1. 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.
  2. Flexible EMIs: Depending on your financial situation and ability to repay the loan, you can choose from a variety of EMI options.
  3. Repayment Tenure: You will have plenty of time to conveniently repay the loan within the maximum 15-year repayment term.
  4. Repayment Methods: To guarantee easy and prompt repayment, HDFC Bank accepts online payments, post-dated checks, auto-debit instructions, and Electronic Clearing Services (ECS).
  5. Prepayment Option: Subject to the relevant terms and circumstances, you can choose to pay back the loan in full or in part early.
  6. 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:

  1. Simple loan terms 
  2. Policies that are advantageous to students 
  3. Reduced rates of interest 
  4. Improved repayment schedules 
  5. 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.

Apply for Online HDFC Education Loan with Propelld

Propelld streamlines the entire student loan application process for you. Our user-friendly digital platform provides varied loan options where we work with partner schools. Take advantage of flexible repayment options and competitive rates to help you finance your student experience finely. Apply with Propelld study loans!

  • Step 1: Get in touch with Propelld by submitting a standard application form or asking for a callback.
  • Step 2: Call your designated financial officer and provide all the information regarding your student loan. Your financial officer will recommend the best lenders for your student loan after reviewing your loan profile.
  • Step 3: Choose your lender and notify your financial officer based on your eligibility.
  • Step 4: Upload your papers to the secure Propelld online documents site.
  • Step 5: Your financial officer will communicate closely with the lender's team to process your student loan and, if necessary, obtain follow-ups.
  • Step 6: If you're taking out a loan from a private bank or NBFC, get your loan sanction letter from the bank within 7 days of filing the paperwork.

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Frequently Asked Questions

Which countries are HDFC Credila offering loans for education?

HDFC Credila provides tailored education loan options for students in more than 50 nations, including the USA, Canada, the UK, Germany, Australia, Singapore, France, and many more.

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

Yes. Without collateral, HDFC offers up to ₹7.5 lakh for courses in India and up to ₹15–35 lakhs for studies abroad. 

How many days does HDFC Credila take to approve?

The time taken by HDFC Credila to approve an education loan varies depending on the application procedure, verification of supporting documentation, application mode, and other factors. However, HDFC Credila processes the education loan in 10 to 15 days.

What is the difference between HDFC and HDFC Credila?

The main difference between HDFC and HDFC Credila is that HDFC Credila is a firm of HDFC Limited. It is India's first specialized education loan company that works under HDFC.

What are all the types of collaterals that HDFC Credila accepts?

Several liquid/movable assets, such as a fixed deposit with HDFC Limited or HDFC Bank, and immovable assets, such as a flat, house, bungalow, land (non-agricultural), or shop, are used as security.

Is the interest paid by a person on the student loan taken from HDFC Credila exempted from taxes?

Yes, HDFC Credila's education loan beneficiary or co-borrower can claim a tax deduction on the annual interest paid on the education loan as per Section 80E of the Income Tax Act, 1961.

What are the courses for which I can take the education loan from HDFC Credila?

HDFC Credila provides education loans not only for the full-time courses offered by recognized educational institutions worldwide but also inside India.

How long is usually the period required to sanction the loan after the documents are submitted?

A student should expect the decision about the loan application in the time frame of 14 – 21 working days.

What are the charges for late payment of EMI?

The delayed installment payment charges for late payment of EMI is @18% p.a plus applicable government taxes on overdue installment amounts. 

What is the interest rate for HDFC credila education loan?

HDFC Bank offers education loans for studying abroad with interest rates beginning at 8.64%, applicable to both secured and unsecured loans. For education loans to study in India, the interest rate varies based on the borrower's loan profile.

Can I make a prepayment?

HDFC Bank offers education loans for studying abroad with interest rates beginning at 8.64%, applicable to both secured and unsecured loans. For education loans to study in India, the interest rate varies based on the borrower's loan profile.

Is HDFC Credila education loan fixed or floating?

The interest rate is a variable rate tied to the HDFC Credila's Benchmark Lending Rate (CBLR). Presently, the CBLR stands at 3.80% per annum. Interest calculations will be made using a simple interest method.

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