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HDFC bank education loans provide loans of up to Rs. 10 lakhs for studies in India and no cap for abroad. Get long tenure periods and hassle-free application process. Students who have secured admission are eligible. Apply Now!
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What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
Headquartered in Mumbai, HDFC Bank Limited is an Indian banking and financial services company. Being the largest private sector lender by assets, HDFC has 84,325 employees, 4,727 branches and 12,220 ATMs across 2,666 cities.
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers,HDFC Bank understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with HDFC Bank education loans.
Following are some of the advantages of applying for an educational loan with HDFC Bank.
Objective: To provide term loan to Indian students for pursuing higher education in India.
Quantum of Loan: Up to 10 Lakhs for studies in India.
Margin: No margin is required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India.
Repayment Period: The tenure is up to 10 years after completing the course for loans up to 7.5 Lakhs and 15 years for above 7.5 Lakhs. The moratorium period is available only for select courses.
Security: No security required for loan up to 4 Lakhs and parents to be co-borrowers. For above 7.5 Lakhs, tangible collateral required with third-party guarantee.
Processing Fees: 1% of the loan amount or INR 1000 whichever is higher.
The courses covered under HDFC Bank education loan are graduation, post-graduation, including technical/professional courses with employment potentials conducted by colleges/universities approved by UGC/Government, AICTE/Department of Electronics/IMC, autonomous institutions like IIM, IIT, etc.
Expenses covered under HDFC Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools etc.
The rate of interest ranges between 9% to 14.1%, which is however subject to change at the discretion of the bank.
Objective: To provide term loan to Indian students for pursuing higher education in foreign universities.
Quantum of Loan: Up to 20 Lakhs for studies overseas.
Margin: No margin required for loans up to INR 4 Lakhs and 15% of margin for above 4 Lakhs for studies overseas.
Repayment Period: The tenure is up to 10 years after completing the course for loans up to 7.5 Lakhs and 15 years for above 7.5 Lakhs.
Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.
Processing Fees: 1.5% of the loan amount with applicable taxes.
Courses offered at select colleges and universities in foreign countries.
Expenses covered under HDFC Bank education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad).
HDFC Bank education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with HDFC Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the HDFC Bank account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-HDFC Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-HDFC Bank account at your nearest HDFC Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
You can either apply online or visit a nearby HDFC Bank branch for the application. You can also download the education loan application form from the HDFC Bank official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, HDFC Bank sets no upper limit on the loan amount for courses pursued abroad which also includes travel expenses and study tours. Higher amount can be obtained based on eligibility and creditworthiness.
4. Is there a processing fee for an education loan with HDFC Bank?
No, there are no processing fees on HDFC Bank education loan.
5. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. HDFC Bank also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.
Santosh Vishnu Bhadale