HDFC Education Loan

It is every parent’s dream to provide their children with quality education. But in the contemporary economy where educational costs are on a rise, it is becoming tough to provide the best possible education to your children. Education loans are an effective way to cope up with the financial issues restraining your child from better education opportunities. With the help of these loans, you can afford higher education without digging a hole in your pockets. The purpose of these loans is to cover all expenses incurred while studying, which typically includes admission, tuition fee, examination, health insurance, travel expenses and other equipment. There are several different education loans provided across various banks and organisations. One such education loan is HDFC education loan. If you are someone who is looking for ways to tackle financial constraints to pursue higher education, here is an insightful blog which will walk you through the essential features and benefits of HDFC Education Loan and HDFC credila education loan.

Maximum Loan Limit	Rs. 20 Lacs +
Margin	Up to 4 lacs – Nil Above 4 lacs 5%
Security	Up to 7.5 Lacs – No collateral Above Rs.7.5 Lacs -Residential Property, HDFC Bank Fixed Deposit
Processing Fee	1%
Interest Rate	9 – 14 %
Loan Repayment	15 years

What is an Education Loan?

An education loan is a loan or a sum of money obtained by a person to pursue higher education in India or abroad. After the student completes their study, the loan payback begins, and students are allowed a grace period of six months to find or join a job. Your choice of interest will impact the payback amount; you must pick how you wish to repay the loan. That is, whether you wish to begin paying either during the moratorium period or after it has ended. The Moratorium term is equal to the length of your schooling plus six months or a year to find work. You are only required to repay the loan when this period has passed. The loan interest begins to accrue at the time of disbursement of money, so by the time you graduate, you will owe a large sum. The other alternative is for your parents or guardians to begin paying the debt while it is still in the moratorium period, when it is computed as a simple interest. In this method, the amount of money you owe after you graduate is dramatically lowered.

The four types of education loan in India are listed below.

• Undergraduate Education Loan
• Postgraduate Education Loan
• Parents who to avail the education loan
• Education Loans for Career Growth

About HDFC Education Loan

The Housing Development Finance Corporation Limited (HDFC) offers various education loans to Indian students applying for admissions in Indian and foreign colleges. HDFC Education Loan promises complete transparency to the applicants while sanctioning the loans to eradicate the problem of doubts and security. Being a market leader for over two decades, HDFC has established a valuable customer base and reputable standards. The education loans are provided with fast disbursement, easy documentation, and higher loan amounts with competitive rates and charges. Students are provided with all major expenses incurred during the tenure of their courses.

Advantages of HDFC Bank Education Loan

Some of the benefits of applying for an educational loan with HDFC Bank are listed below.

• Low-interest rate
• Less paperwork
• Faster Disbursal
• Hassle-free application process

The HDFC Education Loans are available in the following two variants:

HDFC Bank Education Loan for Indian Education

This HDFC Education Loan is offered to students aspiring to pursue higher education in colleges recognized by UGC, AIBMS, ICMR, AICTE in several disciplines. HDFC offers great financial solutions with multiple benefits under every loan scheme along with fast loan processing and easy documentation process. Moreover, each education loan is designed according to the requirements of wide-ranging programs and academic institutions.

Here are some of the major benefits of HDFC Education Loan for Indian Education:

• No collateral is required to be submitted as security for loans up to Rs. 7.5 lakhs. Any loan amount exceeding that would require collateral security in the form of residential properties, HDFC Bank Fix Deposit, LIC, or any other valid document. 
• Borrowers availing loans up to Rs. 7.5 lakhs can extend their repayment tenures up to 10 years and for the loan above this amount, the tenure can extend up to 15 years. 
• Applicants are required to pay at least 1% of the total loan amount as processing fees. 
• Applicants are not required to submit any margin amount for loans up to 4 lakh INR but for loans above this, a margin of 5% is required. 
• If the education loan is pre-closed during the monitoring period then, an outstanding amount of up to 4% has to be paid as prepayment charges. 
• The education loans taken for pursuing higher studies in India will be directly disbursed to the institutions as per the given fee structure.
• The loan also provides additional coverage of life insurance for students under insurance protection. 

Check out Loans by Government
Education Loan by Delhi Government
Education Loan Scheme by Narendra Modi
Education Loan for Abroad Studies by Indian Government

HDFC Education Loan with Credila

HDFC bank in collaboration with Credila, offers customized education loan schemes to students aspiring to pursue various degree courses abroad in over 4000 universities across 36 countries worldwide. HDFC provides attractive interest rates, flexible repayment and loan tenures to those wanting to study abroad in their chosen field of interest. Further, this scheme also provides students with an option of getting loan sanctioned before their admissions are confirmed in order to help them plan their finances and improve their chances of getting admissions. 

HDFC Bank Education Loan for Foreign Education

Here are some of the major benefits of HDFC Education Loan for Foreign Education:

• HDFC Education Loan for studies abroad covers expenses like hostel fees, book fees, tuition fees, along with the travel expenses. 
• Borrowers are required to pay 1.5% of the total loan amount as processing fees. 
• The loan finances up to 100% of the cost of education and also approves loan amount above Rs 20 lakhs.
• If the education loan is pre-closed within 12 months from the date of agreement, then applicants have to pay 4% of the principal amount as prepayment charges. 
• The tuition fees and the hostel fees are disbursed directly to the institutions where the students have been admitted to.
• Education loan taken for studies abroad have to be repaid as monthly instalments.

HDFC Education Loan Interest Rate

The education loan interest rate is different for courses in India & courses from abroad. HDFC Educational Loan covers course fees, purchase of books, equipment, instruments, uniform, payment of hostel fees, examination fees, study tools, etc. The HDFC Education Loan Interest Rate can be ranged between 9 – 14% for courses in India as well as abroad. 

HDFC Credila Education Loan

The rate of interest & loan amount offered by banks are the same for all the students belonging to the same category, HDFC Credila education loan offers a customize education loan at your doorsteps without the stress of long queues at banks & the application process is also easy. The maximum loan amount is Rs. 20 Lacs & without any security the loan amount is Rs. 7.5 Lacs. Unlike the other banks, loans are sanctioned before admissions also.

HDFC Credila Education Loan Interest Rate

The HDFC Credila education loan interest rate is different for individuals. It depends on the loan amount, courses, university, academic background & various other factors. The loans are custom made just like that the rate of interest is also different. However, it usually ranges between 11 – 13%. You can calculate the rate of interest by using (HDFC Credila’s CBLR + Spread)% per annum. The HDFC Credila’s CBLR is always changing. 

Click Here for Current HDFC Credila CBLR

Eligibility of HDFC Education Loan

Please check the eligibility of HDFC education loan.

• Between the ages of 16 and 35, Indian residents

• All full-time programs require a co-applicant, who might be a parent or guardian, or a spouse or parent in law.

• Students must have been accepted into a higher education programme at a recognised institution in India or abroad either an entrance exam or a merit-based selection process.

• Approved graduate and postgraduate degree programmes, as well as P G certificates, are offered by accredited institutions and universities recognised by the UGC, the government, the AICTE, AIBMS, and the ICMR, among others.

Documents Required for Education Loan

For applying for an education loan there are some important documents required. Here is the list of documents required:

• Address proof
• Identification card
• Application form
• Passport-size photographs
• Admission Letter
• Income proof of the guarantor
• Collateral Security documents
• GRE/IELTS/TOEFL/GMAT Score
• 10th and 12th exam mark sheets
• Latest 6 Months Bank Statement of the Salary Account.
• Latest 2 Salary Slips carrying the date of joining details

How to Apply for HDFC Bank Education Loan

HDFC Bank accepts applications for education loans both online and offline. To apply online, go to the bank’s website and follow the on-screen instructions. You may also apply for an education loan by visiting a bank and completing the required paperwork.

HDFC Credila Education Loan Without Collateral

All the banks in India offer up to Rs. 4 – 4.5 Lacs of loans without the collateral i.e. security whereas HDFC Credila Education loan without collateral is up to Rs.20 Lacs. This is not for every applicant, this loan is provided after checking applicants on various factors & only to talented & deserving students. 

HDFC Education Loan Without Collateral

Most of the bank offers education loan without collateral for up to Rs. 4,00,000/-. HDFC offers up to Rs.7,50,000/- for courses in India & up to Rs. 15 – 35 lakhs for courses in foreign countries without any collateral. The application process is the same for HDFC Education loan without collateral as well, you can also visit the nearest branch to know more about this.

HDFC Education Loan Status

You can also check the status of your HDFC education loan application on the official website. Here is the step-wise procedure to check the status:

• Visit the official website of HDFC education loans.
• Enter your name or reference number
• Next, you have to enter your Date of birth or mobile number
• You will be redirected to a page & check your status.
• The processing can take up to 15 – 30 days, in case of any doubt or queries you can visit your nearest branch or send an email. 

Click Here to check the status of the HDFC Education loan

HDFC Education Loan EMI Payment Methods

The three options for repaying an HDFC Bank education loan are as follows.

• Standing Instruction (SI): Standing Instruction is the ideal method of repayment if you already have an account with HDFC Bank. At the conclusion of each monthly cycle, your EMI amount will be automatically deducted from the HDFC Bank account you choose.

• Electronic Clearing Service (ECS): If you have a non-HDFC Bank account and would like your EMIs paid automatically at the conclusion of the monthly cycle, this method is for you.

• Post-Dated Cheques (PDCs): Post-dated EMI checks from non-HDFC Bank accounts can be submitted to your local HDFC Bank Loan Center. A new set of PDCs will need to be submitted as soon as possible. Please note that only non-ECS locations will be accepted for Post Dated Cheques.

• It is advised that you utilize either the SI or ECS form of payment rather than PDCs since they are speedier and less prone to mistakes.

For Official Queries

In case of any query or doubts, you can reach HDFC bank at their Toll-Free number – 1800 258 3838.

In case of any query or doubts related to Credila education loan, customers write an email to [email protected]. You will receive a response within 24 – 48 hours. This email is for pan India.

Also, Check Out: SBI Education Loan

Other Funding Options

You can also look for several scholarship options such as HDFC Scholarship, Canara Bank Scholarship and Inspire Scholarship amongst others. that provide funding for studies in India and abroad. These have been given a run-down below.

• Inspire Scholarship
• DCE Scholarship
• Canara Bank Scholarship
• Moma Scholarship
• MHRD Scholarship
• JK Scholarship
• Santoor Scholarship
• Punjab Scholarship
• Indira Gandhi Single Girl Child Scholarship
• Ishan Uday Scholarship
• Oasis Scholarship
• Dr Ambedkar Scholarship
• NEC Scholarship
• Aditya Birla Scholarship
• Vidyasiri Scholarship
• GP Birla Scholarship
• Abdul Kalam Scholarship
• Siksha Abhiyan Scholarship
• HDFC Scholarship

FAQs

Thus, we hope that this blog on HDFC Education Loan helped you understand the characteristics of this education loan and its variants. There are plenty of other education loans offered across the globe that you can choose from. If you’re looking to pursue higher education abroad with the help of loans and other scholarship programs, get in touch with our Leverage Edu and Fly Finance experts and we’ll assist you in picking the right scholarship or education loan that can fund your dream of studying abroad.