HSBC Bank Education Loan- Eligibility, Interest Rates, Documents Required, Application Process

HSBC Bank Education Loan- Eligibility, Interest Rates, Documents Required, Application Process

For holders of HSBC accounts, HSBC provides education loans for further education in India and beyond. Through its services for foreign accounts, it offers loans to study abroad. To learn more about the HSBC education loan, continue reading.

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HSBC Education Loan Interest Rate and Other Details

While exploring interest rates and charges, don’t overlook the Tax Benefits on Education Loan Repayment, which can reduce your effective repayment cost with HSBC.

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HSBC Education Loan for Abroad

Also Read: How to Get an Education Loan for Abroad Studies in 2024

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Get Education Loan for Any College in India. 100% Fees Financed- Propelld Education Loan

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Documents Required for HSBC Education Loan

International loan applicants, including those applying through HSBC, should review the Education Loan for Ireland guide for a detailed list of required documents.

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Also Read: Education Loan without Collateral 2024: Banks and Interest Rates

Get upto 100% Education Fees Financed with Propelld. Simplified  Processing  Dedicated Support.

Education Loan Subsidy Schemes 

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Must Read: Minority Education Loan Scheme: Eligibility & Interest Rates 

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How to Apply for an HSBC Education Loan?

You can apply for the HSBC Education Loan online or offline: 

Offline: 

Step 1: Go to the HSBC operational branch closest to you.

Step 2: Deliver all necessary paperwork to that branch.

Step 3: A verification of your documents will occur.

Step 4: The loan amount will be approved and paid out after verification.

Online:

Step 1: Start the application process. 

Step 2: Upload the necessary files directly through the website to guarantee that your identification, academic standing, and financial situation are correctly reflected.

Step 3: After reviewing your application and supporting documentation, HSBC determines if you qualify for an education loan.

Step 4: The loan amount is disbursed upon approval, enabling you to pay your educational costs.

HSBC Bank Loan Repayment Process 

The length of time you select will determine how much you repay HSBC. The EMIs will be calculated using the interest rate and payback period at the time of sanction.

For instance, if the applicant took out a loan of 20 Lakhs at a rate of interest of 12% and the repayment period was 15 years, their EMI schedule would look something like this:

Before starting repayment with HSBC Bank, it's important to understand the Education Loan Moratorium Period, which can delay EMI payments until after graduation.

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Minimal Documentation. Higher Chances of Approval. Easy Online Processes. Check Your Eligibility. 

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Challenges while applying for HSBC Education Loan

Here are the common challenges faced while applying for an HSBC Education Loan: 

• A tedious and lengthy process
• Might have to schedule several visits 
• processing the loan takes a highly long time

Overcome these challenges with a Propelld Education Loan! 

Propelld Education loan has a 100% digitised process, which is easy and has higher approval rates than other commercial banks. 

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Why Propelld?

There are several more benefits of getting a Propelld Education loan. They are: 

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FAQs About HSBC Education Loan 

What is the maximum loan amount I can borrow through HSBC Education Loans?

HSBC offers education loans ranging from INR 15 lakhs to INR 30 lakhs, depending on the course and your study location. For students applying for overseas education, loans up to INR 1.5 crores are sometimes available.

What does the HSBC Education Loan cover?

The loan covers tuition fees, accommodation, travel expenses, study materials, and other related costs. It can also cover exam fees, library fees, and project-related expenses.

What are the interest rates for HSBC Education Loans?

Interest rates typically range from 9.25% to 15.5% per annum. The exact rate depends on the applicant’s financial profile, course, and study location.

What is the repayment tenure for HSBC Education Loans?

The repayment period ranges from 5 to 15 years. Students can start repaying after completing their course, with a moratorium period that includes the study duration plus an additional 6 to 12 months.

Is there any moratorium period for HSBC Education Loans?

Yes, HSBC offers a moratorium period that includes the course duration plus 6 to 12 months after the completion of the course, during which only interest may need to be paid.

Can I apply for an HSBC Education Loan online?

HSBC offers an online application process where you can easily apply from home, upload documents, and track your loan approval and disbursement status.

Are there any processing fees or charges?

Yes, HSBC charges a processing fee, which can vary depending on the loan amount and country. Some discounts or waivers may be available if you apply online.

What are the eligibility criteria for an HSBC Education Loan?

Applicants must be between 21 and 65 years old, have Indian citizenship, and have an active HSBC account for at least three months. The student must have secured admission to a recognised educational institution.‍‍

Is a co-applicant required for the HSBC Education Loan?

Yes, HSBC mandates that a co-applicant be included. This could be a parent, spouse, or sibling who meets specific financial criteria. Co-applicants may also need to submit their income proof.

What documents are needed for the HSBC Education Loan?

Key documents include:

1. Identity proof (passport, voter ID).
2. Academic records.
3. Proof of admission.
4. The co-applicant's financial documents (salary slips or income tax returns).

Does HSBC provide loans for studying abroad?

Yes, HSBC offers education loans for students pursuing studies abroad. These loans cover various expenses like tuition fees, accommodation, travel, and study materials for overseas education.

What repayment options are available for HSBC Education Loans?

HSBC offers flexible repayment options. To ease the financial burden during studies, you can opt for EMIs spread over 5 to 15 years, with interest-only payments during the moratorium period.

Does HSBC offer any insurance for education loans?

Yes, loan insurance is often mandatory. It protects the co-applicant from repaying the loan if the student has an unfortunate accident or becomes disabled.

What happens if I face issues repaying the HSBC Education Loan?

HSBC provides several support options, including loan restructuring, extensions, or interest-only payments for a defined period in case of financial hardship.