HDFC Education Loan – Interest Rate, Charges, Features and Schemes

HDFC Education Loan Interest Rate compared to other private banks providing education loans, are competitive and convenient for all applicants of different income brackets. Their education loan MCLR rate, which serves as the basic rate of education loan for any scheme, starts from 8.35%, which is comparable to many centralized banks of India. Students can also reap the benefits of education loan interest rate subsidies with HDFC bank and Indian Government. HDFC Education Loan interest rate options are consistent and affordable enough for aiding education of students across 36 nations. This helps students in keeping their academic expenses low and emphasize on non-academic expenses like accommodation and travel.

HDFC Education Loan Basic Interest Rates

HDFC bank with its offers of ‘HDFC Doorstep Servicing’ and ‘Local HDFC Asset Centers’ has helped students get over the common difficulties of education loans in India. Students often hustle with the education loan application process, disbursement and repayment issues. HDFC Education Loan facilitates the studies of Indian students with all these services and that too at very convenient Education Loan Interest Rates.

Some peculiar details about the HDFC Bank Education Loan Interest Rates are:

HDFC Education Loan Interest MCLR Rates

MCLR Rates help students in planning what an education loan should cost them. Students who are aware about these rates for any bank, can estimate the education loans’ Actual ROI and plan well. The HDFC Education Loan interest rate for any scheme is measured by adding a standard range of 2% to 8% with the MCLR rates depending upon the education loan specifics (tenure, loan amount, educational institution etc.). Find the HDFC Education Loan Interest MCLR rates in the table below:

S. NoHDFC Bank MCLR RateHDFC Bank Education Loan Tenure
2.8.40%1 Month
3.8.45%3 Month
4.8.55%6 Month
5.8.70%1 Year
6.8.85%2 years
7.9.00%3 years and above

These MCLR rates are updated on a regular basis and thus, HDFC Education Loan Interest Rate for any education loan scheme generally lies in between a certain range. HDFC discloses the information about the interest applicable on each education loan after due analysis of education loan amount, educational institution, courses applied for, loan tenure and collateral availability. The details of latest HDFC Education Loan Interest Rate options are mentioned below for your reference.

HDFC Education Loan Interest Rate (Latest: December 2018)

HDFC Educational Loan LimitsInterest Rate Ranges
Education Loan up to ₹400,000 (4 Lakhs)Min: 10.25% to Max: 12.25%
Education 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%
HDFC Education Loan Interest Rate (average)11.88%

HDFC Education Loan Charges and Other Expenses

Every bank charges a standard education loan processing fees and other additional charges for pre-payment. HDFC Education Loan for Domestic Education provides applicants with low processing charges and no extra charges for documentation and pre-payments. HDFC Overhead charges of Education Loan for study abroad are also comparable and convenient for applicants. The complete details of HDFC Education Loan overhead charges and expenses are:

HDFC Education Loan Charges for Domestic Studies

Charge TypeCharge Details
Education Loan Processing Charges1% of the sanctioned loan amount or ₹1000/- (whichever is higher)
Pre-payment chargesBefore moratorium period: 4% of outstanding loan amount

After moratorium period: NIL

EMI payment default charges24% per annum of unpaid amount
Cheque/ACH swapping charges₹500/- (every time)
Duplicate repayment schedule charges₹200/-
Loan rescheduling chargesUp to ₹1000/-
EMI return charges₹550/- (every time)
Legal charges (underwriting and notary)As per actual bills

Definitions of Education Loan terms:

Moratorium Period: Course duration + 1 year or employment after course + 6 months

ACH Swapping: Change of account for National Automated Clearing House (NACH) Mandate, changing account from which Education Loan EMIs are paid

Loan rescheduling: Change of monthly EMI date/extension of education loan tenure

EMI Return: EMI Cheque bounce (EMI default included/not-included at the discretion of bank)

EMI payment default: Education Loan EMI overdue

Duplicate repayment schedule: for requests of obtaining  education loan repayment schedules, after each loan portion disbursement

HDFC Education Loan Charges for Foreign Studies

Charge TypeCharge Details
Education loan processing chargesUp to 1.5% of sanctioned loan amount
Pre-payment chargesNIL
EMI payment default2% per month + taxes (on outstanding amount)
Cheque/ACH swapping charges₹500/- (every time)
Cheque/NACH/Direct Debit bouncing charges₹400/- (per instance)
Loan cancellation charges1% 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 chargesWithout Collateral: ₹2000/- + taxes

With Collateral: ₹4000/- + taxes

Definitions of Foreign Education Loan terms:

Manual Collection: Collection of education loan EMI/other charges by HDFC agent at applicant’s place

Document handling: Legal documents, loan account documents maintenance and upkeep

Loan account update: Change of beneficiaries, changes in personal details of applicant, changes in academic status, etc.

HDFC Education Loan Interest Rate Subsidies

HDFC Education Loan Interest Subsidies are powered by Indian Government just like any other bank. The HDFC bank complies with all education loan subsidy schemes as run by various ministries of GOI. These subsidy schemes provide collateral free education loan and interest subsidies for applicants who come from economically weaker sections and backward classes. The Education Loan Services of other banks including the centralized banks do not support all government schemes but HDFC Bank does. These HDFC Bank education loan interest rate subsidies are:

Central Sector Interest Subsidy (CSIS Scheme)


  • Collateral free education loan for economically weaker sections (annual income below: ₹4,50,000/4.5 lakhs) up to ₹7,50,000 (7.5 lakhs) loan amount
  • Education Loan Interest waiver for moratorium period (see definition above)

Dr. Ambedkar Central Scheme of Interest Subsidy on Education Loan for Overseas Studies


  • Collateral free education loan for OBCs (Other backward classes) and EBCs (Economically Backward Classes)
  • Income limits for OBCs: ₹6,00,000 (6 lakhs) and EBCs: ₹2,00,000 (2 lakhs)
  • Education Loan Interest waiver for moratorium period (see definition above)

Padho Pardesh – Scheme of Interest Subsidy on Educational Loans for Overseas Studies


  • Collateral free education loan for minorities (Parsi, Jain, Sikhs, Buddhists, Muslims etc.)
  • Maximum income limits for applicants and co-applicants: ₹6,00,000 (6 lakhs)
  • Education Loan Interest waiver for moratorium period (see definition above)
  • Only Loans for International Education eligible for this scheme

HDFC Education Loan Features and Special Schemes for Study Abroad

Education loans have become second most popular options after scholarships for study abroad. HDFC bank has identified the growing need of education loan in context of both Indian and foreign education. Options like Multi-City co-borrowers, HDFC Asset Centers and Manual Collection facilities help students rise above the common logistical concerns of foreign education loans.

In addition to this, the education loans of HDFC bank are scholarship adjustable. This means that meritorious students pursuing higher education can pay their margin fees and in some cases even EMIs with their scholarships and fellowships. HDFC Education Loan Application process is also very streamlined and students can get their education loan sanctioned for any amount within 1 to 15 days of time. For more information on HDFC Education Loans, other bank education loans and education loan application by Central Government Vidyalakshmi Portal, visit Buddy4Study Articles and read detailed information about them.