HDFC Education Loan for Abroad is a financing option which provides students with the freedom and autonomy to pursue education at the elite international institutions. Education loan for foreign education by HDFC bank provides funds applicable for over 950+ courses and 2100+ institutes across the globe. Students with the options of ‘HDFC Education Loan Insurance’ and ‘multi-city borrowing’ can smoothen the process of their foreign education without any hassle.
HDFC Student Loan for Study Abroad also provides students with options of no margin payment and no pre-payment charges based on the institution and academic record of the applicant. Moreover, students who wish to study in USA, UK, Netherlands, Canada, Singapore and other academically renowned locations, can manage all their expenses with HDFC Education Loan.
HDFC Education Loan for Abroad features:
- Collaboration with 4000 academic institutions in 36 different countries
- Education Loan Interest providing tax benefits under Section 80/E of Income Tax Act (1961)
- Education Loan up to ₹20,00,000 (20 Lakhs) and even ₹36,00,000 (36 Lakhs) in some cases
- Interest rates like domestic education loans
- Loan approval before admission
- Multi-city borrowers allowed, co-applicants and applicants need not be residing in same regions
- Total web-based services, remote loan disbursal available
HDFC Education Loan for Abroad Eligibility and other details
HDFC Education Loan for Study Abroad is applicable for all aspiring applicants to any academic course in any academic country. The HDFC bank’s tie up with institutions across 36 countries does not limit its abilities to serve Indian students in any other country. Education loans for foreign education generally cover a limited range of academic expenses, but HDFC Bank covers this concern of international Indian students with ease.
With the opportunity of getting a student loan sanctioned from HDFC Bank before admission, students can declare their ‘Assured funds to universities’. This helps them declare financial viability for student visa without any financial or other hurdles. The complete details of HDFC student loan for abroad are:
HDFC Education Loan for Abroad: Key Details
HDFC Education Loan for Abroad Eligibility
- Applicant must be an Indian citizen
- Should apply for the education loan with a co-applicant (definition given below)
- Courses applied for should provide degree from non-Indian institutes
Definition of Co-applicant: Financial guarantor or EMI remitting authority for the applicant. Types of allowed co-applicants are:-
- Primary Co-Applicants – Parents, Spouse, Siblings
- Secondary Co-Applicants – Father-In Law, Mother-In-Law, Brother-In-Law, Paternal/ Maternal Uncle/ Aunt
HDFC Education Loan for abroad academic expenses covered
- Exam/ Library/ Lab fees
- Travel expenses/ passage money for studies abroad
- Student Insurance (Health and Accident Cover)
- Miscellaneous expenses related to the course like study tours, project work, thesis, etc.
- Caution deposit/ Refundable deposit
- Building fund – supported by Institution bills/ receipts
- Purchase of books/ equipment/ instrument/ uniforms
HDFC Education Loan eligible courses
- Master’s courses (M.Phil/M.Sc./M.A./Ph.D./Post-Doctoral Research, etc.)
- Management courses (M.B.A/ Entrepreneurship, etc.)
- Engineering courses (B.Tech/M.Tech, etc.)
- Other courses (Certificate/Diploma, etc.)
HDFC Education Loan Amount Limits
- Min: ₹1,00,000 (1 Lakh)
- Max: No bar (case sensitive)
- Average maximum education loan limit: ₹25,00,000 (25 lakhs)
HDFC Education Loan for Abroad Interest Rates
| Loan Amount Limits | HDFC Education Loan Interest Rate Ranges |
| Education Loan up to ₹4,00,000 (4 Lakhs) | Min: 10.25% to Max: 12.25% |
| Education Loan above ₹4,00,000 (4 Lakhs) | Min: 10.25% to Max: 15.00% |
| HDFC Education Loan Interest Rate (average) | 11.88% |
HDFC Education Loan for Abroad: Documents required
Every now and then students are meant to comply by the documentation requirements of the bank for education loans. International students of India already bear the brunt of Student VISA and other compliances, thus, HDFC resolves the conditions of documentation for them. The document requirements of HDFC Education Loan for Abroad are:
Academic documents:
- Institute admission letter
- USA Applicant: I-20 Form, UK Applicant: CAS Letter (or equivalent as applicable for the country)
- SSC, HSC, Graduation mark sheets (as applicable for course applied)
- Entrance exam scores like GRE/ GMAT/ TOEFL/ IELTS
KYC (Identity) documents
- Identity proof/ Age proof
- Residence proof
- Signature proof (as authenticated by HDFC bank)
Financial documents
- Self Employed (professionals)
- ITR of previous 2 years along with computation of income
- Audited balance sheet/ (P&L Statement) profit and loss statement: latest 2 years
- Bank statement of previous 8 months
- Proof of qualification (certificates/diplomas etc.)
- For salaried applicants/co-applicants
- Latest 3 salary slips
- Latest 6 months bank statement
- Previous year Form 16 of Income Tax Returns
- Self Employed applicants/co-applicants
- ITR (Income Tax return) of previous 2 years
- Authorised Chartered Accountant (CA) audited, balance sheet of previous 2 years
- Bank statement of business for previous 8 months
- Proof of annual turnover (latest sales/ service tax return)
- Post Sanction Documents:
- Demand letter from institution for each disbursement
- Complete Education Loan Agreement
- ECS and NACH Mandate along with PDCs( post-dated cheques)
HDFC Education Loan for Abroad Bank Charges checklist
HDFC Bank Education Loan for Abroad is provided with the consideration of least financial burden on the applicants. Thus, many common education loan charges (like credit assessment charges, pre-payment charges, NOC charges etc.) which apply to other common bank schemes are waived off in HDFC Education Loan for Abroad. The details of standard charges which HDFC Student Loan for Abroad are:
| HDFC student loan for abroad charges | Charge quantum and timeline |
| Education loan processing charges | Up to 1.5% of sanctioned loan amount |
| Pre-payment charges | NIL |
| EMI payment default | 2% per month + taxes (on outstanding amount) |
| Cheque/ACH swapping charges | ₹500/- (every time) |
| Cheque/NACH/Direct Debit bouncing charges | ₹400/- (per instance) |
| Loan cancellation charges | 1% of non-disbursed education loan amount + taxes |
| Manual collection charges | ₹200/- (per instance) |
| Loan account update charges | ₹1500/- + taxes (as per customer request) |
| Document handling charges | Without Collateral: ₹2000/- + taxes
With Collateral: ₹4000/- + taxes |
HDFC Education Loan for Abroad: Scholarships as an option
HDFC Education Loans can be adjusted with scholarships and the loan amount can be prepaid without any fees if the meritorious applicant manages to secure an academic scholarship. In this way, Scholarships and Fellowships being the primary sources of academic funding for international students can act as propellants for students’ academics and career.
Equipped with all this information, applicants should also know about education loans to fund education abroad. Buddy4Study Eduloans also empower international students from India with tailor-made education loan schemes to pursue higher education abroad. Visit Buddy4Study EduLoans to know more. Happy Learning!