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Education is a high-yield investment that can be a huge financial burden for students.
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.
By the end of this blog, you will know
- Loans up to ₹10 lakh for studies in India; up to ₹45 lakh unsecured for abroad
- Interest rates ranging from 8.64% – 14% p.a., depending on loan type, profile, and collateral
- Collateral-free options for loans ≤ ₹7.5 lakh (India) and ≤ ₹45 lakh (abroad)
- Moratorium available during course + 6 months to 1 year
- Tax benefits under Section 80E for interest paid
HDFC Education Loan Interest Rates and Other Charges
| Loan Type | Loan Amount | Interest Rate (p.a.) | Processing Fee | Moratorium/Grace Period |
| Domestic – unsecured | Up to ₹7.5L | 10.50% onwards | Nil | Course duration + 6 months |
| Domestic – secured | Above ₹7.5L | 10.50% + 1% | 1% | Course duration + 6 months |
| Abroad – unsecured | Up to ₹45L | 8.64% – 14% | Up to 1% | Course duration + 6 months |
| Abroad – secured | Above ₹45L | 8.64% – 14% | Up to 1.5% | Course duration + 6 months |
Other Charges:
- Late EMI payment: 24% p.a. on overdue EMI
- EMI return: ₹450 per instance
- Duplicate repayment schedule: Nil
- Loan cancellation / rebooking: Nil
Rates are linked to HDFC Benchmark Lending Rate (CBLR) and may change as per RBI guidelines. HDFC Bank’s foreign education loan is offered in association with Credila Financial Services (formerly HDFC Credila), so the abroad-study rates are linked to Credila’s benchmark lending rate.
The final interest rate depends on the borrower’s profile, co-applicant income, and institute category.
You can compare these rates with other lenders through our guide on Best Education Loans in India 2025 or explore Loans Without Collateral for a better understanding of your options.
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Key Features of HDFC Education Loan 2025
The HDFC student loan combines high-value financing with flexible repayment options and quick approvals.
Here’s a quick overview of its main features:
|
Feature |
Details |
|
Eligibility |
Students who have secured admission in recognized universities or institutes in India or abroad. |
|
Loan Tenure |
Up to 15 years, including the moratorium period. |
|
Loan Amount |
Up to ₹10 lakh for studies in India, and no upper cap for overseas education (based on eligibility and collateral). |
|
Interest Rate |
Up to 14.10% p.a., varying by course, profile, and collateral offered. |
|
Accepted Collateral |
HDFC Bank Fixed Deposits, residential property, or insurance policies. |
|
Processing Fees |
Up to 1.5% of the sanctioned loan amount. |
For faster approval, ensure your KYC documents and admission proof are ready. Students applying to recognized institutes may also qualify for collateral-free loans. Learn more on our Education Loan Without Collateral page.
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HDFC Education Loan Schemes 2025
HDFC Bank provides education loan schemes designed to support Indian students pursuing higher education in India or abroad. Each scheme is tailored to meet different academic and financial needs, from undergraduate programs to professional and global degrees.
Here’s a breakdown of the two major HDFC education loan schemes:
Ideal for students pursuing higher education within India, this scheme offers easy financing for tuition fees, books, accommodation, and related expenses.
Key Features:
- Eligible Applicants: Indian residents aged 16 to 35 years.
- Loan Amount: Up to ₹7.5 lakh without collateral; higher amounts may require security.
- Tax Benefits: Rebate on interest paid under Section 80E of the Income Tax Act, 1961.
- Processing Fee: Minimum ₹1,000 or up to 1% of the loan amount (whichever is higher).
- Repayment Tenure: Up to 15 years with flexible EMI options.
This scheme is best suited for Indian students planning to pursue graduate or postgraduate education overseas.
Key Features:
- Eligible Applicants: Indian residents aged 16 to 35 years.
- Loan Amount: Up to ₹45 lakh unsecured; higher amounts available with collateral.
- Coverage: Tuition fees, travel, living expenses, and other study-related costs.
- Repayment Tenure: Up to 14 years, with a moratorium during the study period.
- Tax Benefits: Interest payments qualify for deduction under Section 80E of the Income Tax Act.
If you are a student admitted to a top international university and looking for the friendliest and fastest education loan, do check Propelld’s guide on Education Loan for Study Abroad to explore alternatives with faster approval.
HDFC Education Loan Eligibility Criteria
Before applying for an HDFC education loan, students must meet specific eligibility requirements that vary slightly for domestic and overseas studies. Here’s an overview of the key eligibility criteria that determine approval for an HDFC education loan in 2025:
Basic Eligibility
- The applicant must be an Indian citizen. For NRIs, a close family member in India must hold Power of Attorney (PoA) to manage the loan process.
- The applicant should be between 16 and 35 years of age at the time of application.
Academic & Course Requirements
- Students must have secured admission to a recognized institution through either an entrance test or a merit-based selection process.
- Eligible institutes include those approved by UGC, AICTE, Government bodies, AIBMS, ICMR, and other accredited authorities.
- Eligible Courses include Graduate, postgraduate, and diploma programs in India or abroad.
- Popular eligible courses include MBA, MS, MBBS/MD, and other professional programs.
Other courses may be considered based on the co-applicant’s financial profile or available collateral.
Co-applicant Requirement
- A co-applicant is mandatory for all full-time programs.
- Eligible co-applicants include Parent or legal guardian, Spouse or parent-in-law
This ensures shared financial responsibility and smoother loan processing.
Loan Tenure & Additional Considerations
- Loan tenure can extend up to 15 years, depending on the course and repayment capacity.
- Students applying for collateral-free loans must demonstrate strong academic merit and a reliable co-applicant income.
You can improve your approval chances by choosing recognized universities and job-oriented courses. Explore Propelld’s detailed guide on Education Loan Eligibility Criteria in India to compare requirements across top banks.
HDFC Education Loan Documents Required (2025)
When applying for an HDFC education loan, both students and co-applicants must provide specific documents for identity, income, academic, and collateral verification. Submitting a complete set of documents ensures faster approval and smoother disbursement.
Duly filled and signed loan application form.
Two recent passport-size photos of both applicant and co-applicant.💡
Double-check that the details on your form match your ID proofs even small mismatches can delay approval.
You’ll need one valid proof each for both applicant and co-applicant.
- Photo ID: PAN Card, Passport, Aadhaar Card, Driving License, or Voter ID
- Address Proof: Passport, Aadhaar Card, Driving License, or Voter ID
Keep both PAN and Aadhaar updated they’re mandatory for most Indian bank loan applications.
These help HDFC verify your academic performance and admission authenticity.
- Academic Records: 12th-grade mark sheet, all semester mark sheets for UG/PG courses, GRE/GMAT/TOEFL/IELTS scorecards (if applicable), scholarship proofs.
- Admission Proof: Official admission letter from the college or university
These documents help determine repayment capacity. Requirements vary for salaried and self-employed individuals.
- Last 8 months’ bank statements (for all active accounts).
- For Salaried Co-Applicant: Last 3 salary slips, Form 16/ITR for last 2 years, employer certificate (if required).
- For Self-Employed Co-Applicant: ITR for last 2 years, audited/provisional financial statements, business registration proof, office address proof
If your co-applicant is a small business owner, ensure income proof aligns with ITR declarations discrepancies may lead to re-verification.
If you’re applying for a secured education loan, HDFC may ask for property-related documents.
- For Property: Title deed, sale agreement, chain of sale deeds, latest property tax receipt, NOC from builder/society, approved building plan, encumbrance certificate.
- For Land: 7/12 extract (if applicable), allotment letter from MHADA/CIDCO/HUDA, registration receipt
Note: For collateral-based education loans, lenders may request additional property valuation or legal reports.
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How to Apply for HDFC Education Loan?
HDFC Bank accepts online as well as offline applications for education loan. Here are both the processes:
Online Application
- Visit the HDFC Bank official website.
- Check out the education loan section.
- Select the type of education loan and check if you fit the eligibility criteria.
- Fill out the application form with the required details.
- Upload necessary documents.
- Submit the application for processing.
Offline Application
- Visit the nearest HDFC Bank branch.
- Request an education loan application form.
- Fill out the form with the required information.
- Attach the necessary documents.
- Submit the application to the bank representative.
After your application is processed, and if your loan is sanctioned, the amount is transferred to the college directly.
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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. 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.
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HDFC Education Loan Benefits
From funding education to easier repayment, HDFC education loan offers a range of benefits to students, which primarily include:
1. Tax Benefits
Interest paid on the loan qualifies for tax deduction under Section 80E of the Income Tax Act.
2. Pay After Education
EMI payments begin after course completion, reducing the financial burden during studies.
3. Covers All Expenses
The loan covers tuition, travel, accommodation, books, and other education-related costs.
4. Flexible Repayment
Offers competitive interest rates with special benefits for students of top institutions.
5. No Immediate Repayment
Provides collateral-free options and co-borrower flexibility for hassle-free loan management.
One of the most important factors when choosing an education loan is understanding the education loan interest rates and comparing them across various lenders, including HDFC.
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 education loans. The other advantage is the long list of expenses it covers.
1. Educational Fees
Covers tuition, lab, and examination fees.
2. Housing and Living Costs
Includes accommodation and food expenses.
3. Transportation Expenses
Funds travel costs to your educational location.
4. Additional Costs
Covers expenses for a laptop, books, and study materials
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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:
1. Central Government Interest Subsidy Scheme (CSIS)
Provides interest subsidies on education loans for economically weaker students in India. The subsidy applies to loans up to ₹7.50 lakh without collateral, with a family income limit of ₹4.50 lakh.
2. Dr. Ambedkar Central Sector Interest Subsidy Scheme (OBC/EBC)
Administered by the Ministry of Social Justice and Empowerment, this scheme provides interest subsidy during the moratorium period on education loans for overseas studies to students from OBC and Economically Backward Classes (EBC). The annual family income ceiling is up to ₹8 lakh for OBC and up to ₹5 lakh for EBC. (Note: The earlier Padho Pardesh scheme for minority students has been discontinued by the Ministry of Minority Affairs; eligible students may instead use the PM Vidyalaxmi scheme, which offers a 3% interest subvention for families earning up to ₹8 lakh per annum.)
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HDFC Education Loan Insurance
HDFC offers optional insurance to protect students and families against unexpected financial risks during the loan tenure.
Credit Shield Insurance: Covers critical illness, accidental disability, and death.
Term Insurance: Secures the loan amount for a specified term; remaining balance is paid in case of death.
Insurance premium can be added to the loan amount or paid separately.
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