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HDFC Education Loan Schemes at Buddy4Study

HDFC Education Loan: All you need to know

by Ankur Gupta

The HDFC Bank is a renowned name in the field of home loans and personal loans. HDFC Education Loan programs, in a similar way have been helping Indian parents and students achieve their academic targets. HDFC Bank provides educations loans for both Indian and Foreign Education along with other vivid features to help students.

The HDFC Bank Education Loan Interest Rates are very competitive compared to other private bank education loans available in India. The features of ‘HDFC Doorstep Servicing’ and ‘HDFC Life Education Loan Insurance’ make it easier for students to disburse and repay their loans. HDFC Banks also provide the unique feature of loan amount withdrawal from ‘local HDFC asset centers’ which makes getting an education loan like taking out cash from any ATM.

Benefits and features of HDFC Education Loan

  • High Loan tenure: Upto 15 years and above
  • Easy loan disbursal: online/offline/HDFC asset centers
  • Education loan insurance cover by HDFC Life
  • No hidden costs, 100% transparency
  • Tax rebates and loan subsidies
  • High education loan amount: ₹2,000,000 (20 Lakhs) and more
  • Wide range of accepted collaterals: even LICs, FD/RDs

HDFC Education Loan: Need to plan

Education Loan application for any student needs to be planned based on their accurate requirements. HDFC student loan eligibility details, loan tenure, courses and expenses covered; all depend on the student’s education location and level of education. Among other banks HDFC Bank Education Loan schemes are more centralized and do not differentiate on the basis of student’s educational institution and that provides a uniform level of service to all applicants.

HDFC Student Loan: Details of Loan Services: Eligibility, Tenure, Margin, and others

Knowing the maximum details about eligibility, loan duration, repayment guidelines, collateral options etc, helps students to make an informed decision. HDFC Bank maintains a transparent model of information to help the applicants (students) and co-applicants (parents) in the best possible manner. Even the education loan norms for HDFC Education Loan for Abroad and HDFC Bank Education Loan (Domestic) as same, so that students do not suffer any confusion. Such details based on different HDFC Bank Education Loan schemes are:

HDFC Bank Education Loan Scheme Details

HDFC Bank Education Loan Norm Particulars
Loan Amount Indian Education

Category A/B: ₹1,500,000 (15 Lakhs)

Category C: ₹750,000 (7.5 Lakhs)

Category D: ₹600,000 (6.0 Lakhs)

 

Foreign Education

Category A/B: ₹2,000,000 (20 Lakhs)

Category C: ₹1,500,000 (15 Lakhs)

Category D: ₹1,200,000 (12 lakhs)

Loan Tenure Min: 3 years; Max: 15 years

Loan Amount (upto ₹750,000): 10 Years

Loan Amount (above ₹750,000): 15 Years

Collateral Options Loan Amount (upto ₹400,000): No Security

Loan Amount (₹400,000 to ₹750,000): Third-party guarantee and parents guarantee (as co-borrower)

Loan Amount (above ₹750,000): Tangible collateral security and parents guarantee (as co-borrower)

Eligibility Indian resident

Age limit: 16 to 35

Academic: HSC (10+2) or equivalent at least

Enrolled for Graduation and above in recognized Indian University/College/Institution accredited by UGC/AICTE/IMC/ etc.

Margin payment Domestic Education Loans

Loan Amount (upto ₹400,000): No Margin

Loan Amount (above ₹400,000): 5% for listed institutions of HDFC Bank

Loan Amount (above ₹400,000): 10% for non-listed institutions of HDFC Bank

Foreign Education Loans

Any Loan Amount: 15% for all institutions

HDFC Bank Education Loan Interest Rates

Information of interest rates is most crucial in planning for education loans. Students who’re well informed about the education loan interest rates are able to know in time if they might need to refinance education loan or for that matter foreclose it. HDFC Education Loan Interest Rate for each loan scheme is based on the MCLR rates as declared by the RBI every month for all Indian Banks providing Education Loans. The details of HDFC Bank Education Loan Interest Rate (MCLR Rates) are:

HDFC Bank Education Loan Tenure Respective MCLR Rate
Overnight 8.35%
1 Month 8.40%
3 Month 8.45%
6 Month 8.55%
1 Year 8.70%
2 years 8.85%
3 years and above 9.00%

Source: RBI.org and HDFC credit reports 2018

Based on the MCLR rates students can themselves draw up the calculation of HDFC Education Loan Interest Rates. They generally lie between a ranges of 2% to 8% addition over the basic MCLR rates. The interest rates are also dependent on the level of education, academic background of applicant (student), credit score of co-applicant/guarantor (parents). The one benefit with HDFC student loan schemes is that the rates of interests are relatively uniform for both domestic and international education.

The details of HDFC Bank Education Loan Interest Rates are:

Education Loan Type and Limits Interest Rate Ranges
Domestic/International Loan up to ₹400,000 (4 Lakhs) Min: 10.25% to Max: 12.25%
Domestic/International Loan above ₹400,000 (4 Lakhs) Min: 10.25% to Max: 15.00%
Min. Education Loan Interest Rate Trend (July ’18 to Sep ’18) 9.00%
Max. Education Loan Interest Rate Trend (July ’18 to Sep ’18) 13.75%
Average HDFC Student Loan Interest Rate 11.88%

HDFC Education Loan for Abroad

The HDFC has financial ties with many foreign universities and has a vast list of educational institutions for International Education Loans. HDFC Bank Education Loans for abroad help students in covering your exam expenses, commute and accommodation expenses, project and research expenses, including obviously your education tuition fees.

Features of HDFC Education Loan for Abroad

  • Education Loan networks across 36 nations
  • No partial loan, 100% finance available
  • Expenses for library fees, equipment expenses and student insurance included
  • Education Loan Security with Credit Secure insurance from HDFC
  • Education loan available for exchange programs or cross border programs
  • Service of Loan Sanction before admission as well

Education Loan for Abroad eligibility

HDFC Education Loan for Abroad is in collaboration with thousands of international institutions with combinations of over 900 different courses. Having such diversity in the eligibility criteria, allows students to try their options for foreign education. Students can also avail international scholarships to settle the repayment of their education loan with HDFC. The margin payment of HDFC student loans is scholarship adjustable. With all these benefits the eligibility criteria for HDFC Bank Education Loan for abroad is laid as follows.

The applicants for HDFC Foreign Education Loan

  • Should be in the age limits of, Min: 16 years and Max: 35 years
  • Be an Indian Citizen
  • Should have cleared the qualifying examination for their proposed education
  • Should have their parent/immediate guardian/in-laws co-apply for the education loan
  • Eligible main courses are:
    • Management Courses (Full-Time)
    • Engineering Courses
    • Medicine – Graduation + Post Graduation
    • Masters in Computer Application ( MCA / MCM )
    • Architecture
    • Hotel and Hospitality
    • Agriculture
    • Pure Science

Students can chose to apply for sub-divisions/minors of these major courses across the globe at recognized universities/colleges/institutions

HDFC Education Loan Interest Rate subsidy

Every student and parent wish to get over with their education loan as soon as possible. Education Loan Interest Subsidies provided by banks to meritorious students is one way to go about it. HDFC Education Loans also provide the government enabled subsidy schemes so that students can pay off the maximum principle amount in least time. HDFC bank aslo supports section 80/E tax exemptions for benefits to education loan applicants. CSIS (Central Sector Interest Subsidy) is supported by HDFC Bank Education Loans to provide direct benefit of interest exemption/compensation to the education loan applicants. The interest subsidy applies to both Indian and overseas education. The details of this subsidy scheme as provided by HDFC for their education loans are:

  • Central Sector Interest Subsidy is applicable to economically weaker sections of the society
  • CSIS is for education loan applicants with annual family income below ₹450,000 (4.5 Lakhs)
  • CSIS provides:
    • Collateral free education loan upto ₹750,000 (7.5 Lakhs)
    • Total Interest Subsidy for the moratorium period
  • Moratorium period refers to the time during which the loan applicant is still pursuing the education loan and regular EMI payments are being done.

All HDFC Education Loan Schemes are covered by these CSIS Education Loan Subsidy Scheme. Applicants (students) are automatically considered for these services one they fill their complete education loan application form.

HDFC Education Loan Payments and Charges

In order to provide students and parents with complete information about the education loan processing HDFC has provided complete details of the pre-processing and post-processing charges of the education loans. Students can plan their education loan expenses along with their EMIs as well. In absence of clear information for education loan, applicants sometimes fall prey to hidden charges. But with HDFC Bank’s transparent Education Loan services students don’t need to worry about this. Details of HDFC Education Loan charges are:

Education Loan Charge Type Particulars
Domestic education loan
Pre-payment charges Before Moratorium Period: 4% of outstanding Loan amount

After Moratorium Period: no charges

Charges of late payment 24% per annum
Legal and incidental charges As actual
Loan cancellation charges NIL
Foreign education loan
Loan processing charges Up to 1.5% of sanctioned loan amount
Pre-payment charges NIL
Loan cancellation charges 1% of the disbursed loan amount + taxes
Legal and Incidental charges As actual

HDFC Bank Education Loan Special Features

All education loans have a distinctive feature which makes them better than the rest. With HDFC Education Loan as well these features come in the form of Education Loan insurance and Education Loan Repayment at regional HDFC Asset Centers. Students can virtually avail the services of HDFC anywhere with the Asset Center option. Students can cover their education loan with security of Education Loan insurance for emergency situations.

HDFC Education Loan Insurance

  • Covers the complete EMI payments of Education Loan in case of emergency foreclosure
  • Allows students to discontinue education loan if they quit their education course
  • Education Loan Amount includes the insurance premium of Credit Protect Insurance Scheme
  • Students have to commit their post education salary towards the repayment of education loan if the loan is not able to cover the entire loan EMIs
  • HDFC Bank Education Loan is covered by HDFC’s Credit Protect Insurance which makes the transition easier
  • Benefits of very less underwriting and legal charges

HDFC Education Loan Asset Centers

CSC Service centers run by Government of India can also act as your local loan disbursement centers for HDFC Education Loan. In addition to this HDFC also has its own Retail Loan service centers which can provide you a front for all the education loan services as the bank provides.

The retail loan service centers of HDFC can provide following Education Loan Services:

  1. Education Loan Disbursement for Academic Installments
  2. HDFC Student Loan Document Submission
  3. Education Loan Application submission
  4. Grievance or complaint submission
  5. Other related requests and processes

How to Apply for HDFC Student Loan?

HDFC Education Loan Application process is comparatively easier process than most banks’. There are no divided online portals for application so students don’t have to split between application portals. HDFC Loan application procedure can either go the standard offline process at the bank branches and students can also visit the website of HDFC Bank to make education loan requests.

The process of online application for the HDFC Bank Education Loan is:

  • Visit the official website of HDFC bank
  • Scroll down the option of ‘Products’ on the top window pane of the website
  • Click on the option ‘Educational Loans’
  • On the landing page, there are options for ‘Education Loan for Indian Education’ and ‘Education Loan for Foreign Education’
  • Under each of these option there are links to apply from Vidyalakshmi Portal
  • Click on the ‘Apply Now’ link for the education loan scheme of your choice
  • On the leading Vidyalakshmi Education Loan portal register with email address and mobile number
  • Apply for Education Loan of HDFC Bank after filling up the ‘CELAF (Common Education Loan Application Form)’
  • The bank officials will make contact with you for education loan sanction
  • Status of application can be checked with ‘Application Status’ icon on Vidyalakshmi Portal.

For more details on how to use the Vidyalakshmi Portal to apply for HDFC student loan and other banks’ education loan schemes, you can read ‘Vidyalakshmi Portal: Education Loan and Scholarships for Indian Students’ at Buddy4Study.

HDFC Education Loans and Buddy4Study Scholarships

Education Loans by HDFC Bank provide a process of easy application and unique benefits. HDFC Bank Education Loan schemes provide a viable solution to the limited reach of education loans. Students can apply online and disburse the loan amounts from local centers. Apart from this loan provides low interest rates and high repayment tenure. Students seldom know that education loans can be combined with scholarships and fellowships to cover educational expenses.

With the help of scholarships students can adjust their margin payments and repayment EMIs as well. HDFC bank allows such adjustments to education loans. Students should try to find more information about scholarship adjustable education loans before they apply for one. With all the key points in consideration one should be able to apply for an HDFC Education loan with relative ease. For any more queries or assistance you may contact Buddy4Study. Happy Learning!

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