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Fincash » Education Loan » HDFC Education Loan

HDFC Education Loan

Updated on October 2, 2022 , 14022 views

HDFC education loan is a great way to fund your education in India as well as abroad. It offers flexible repayment tenure along with good interest rates. HDFC Bank has been known for its credibility, transparency and Accountability when it comes to loans.

HDFC Education Loan

You can avail loans the hassle-free way with convenient loan amount disbursement options.

HDFC Education Loan Interest Rate 2022

HDFC Education loan’s interest rate starts at 9.65% p.a. The minimum and maximum rate depend on the bank’s discretion and your requirement along with the profile.

irr refers to Internal Rate of Return.

Min IRR Max IRR Avg IRR
9.65% 13.25% 11.67%

Features of HDFC Education Loan

1. Loan Amount

You can avail loans up to Rs. 20 lakh for education in India and abroad.

2. Repayment Tenure

The loan repayment tenure is up to 15 years. The repayment period starts after 1 year from the completion of studies or 6 months after getting a job.

3. EMIs

Flexible EMI repayment option is available with the bank.

4. Collateral Option

HDFC bank offers Collateral-free loan up to Rs. 7.5 lakhs, above this amount the applicant needs to submit a collateral. Various options for collateral are available with the bank like residential property, HDFC bank Fixed Deposit, etc.

5. Tax Benefit

You can save on Taxes with a rebate on the interest to be paid. This is under the section 80-E of the income tax Act 1961.

6. Insurance Availability

HDFC provides credit protection from HDFC Life. This will be part of the loan amount you avail from the bank. HDFC Life is HDFC bank’s Life Insurance provider.

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HDFC Education Loan Eligibility Criteria

1. Nationality

You have to be an Indian national.

2. Age

You have to be between the age of 16 to 35.

3. Co-Applicant

HDFC bank requires co-applicant for the purpose of an education loan. The co-applicant can be parent/guardian or spouse/parent-in-law.

4. Admission Security

In order to avail the loan, it is required that you have secured admission to a higher education course in a recognised institution in India or abroad. This could be through an entrance test/ merit-based selection process.

5. Approved Courses

You can avail the loan for approved graduate/post-graduate degree and PG diplomas conducted in recognised universities/colleges. This should be recognised by UGC/ Government/ AICTE/ AIBMS/ ICMR, etc.

Fees and Charges

Mentioned below is the various charges to be paid under HDFC Education loan scheme.

The charges are subject to change based on bank's discretion.

Description of Charges Education Loan
Loan Processing Charges Maximum up to 1% of the loan amount as applicable or Minimum Rs. 1000/- whichever is higher
No Due Certificate / No Objection Certificate (NOC) Nil
Duplicate of No Dues Certificate/NOC Nil
Solvency Certificate Not applicable
Charges for late payment of EMI @ 24 % p.a. on overdue/unpaid EMI amount outstanding from EMI due date
Credit assessment charges Not applicable
Non-standard repayment charges Not applicable
Cheque / ACH swapping charges Rs. 500 per instance
Duplicate Repayment Schedule Charges Rs. 200
Loan Re-Booking / Re-Scheduling Charges up to Rs. 1000
EMI Return Charges Rs.550/- per instance
Legal / incidental charges At actual
Stamp Duty & other statutory charges As per applicable laws of the state
Loan Cancellation Charges Nil cancellation charges. However, interest for the interim period (date of disbursement to date of cancellation), CBC/LPP charges as applicable would be charged and Stamp duty will be retained

HDFC Education Loan Documents Required

1. Documents required for Pre- Sanction

Academic Requirement

  • Admission letter from the institute with Fee break-up
  • SSC, HSC, Graduation mark sheets (whichever applicable)

KYC Requirement

  • Signature Proof
  • Identity Proof
  • Residence Proof.

Income Documents

  • Latest 2 Salary Slips carrying the date of joining details
  • Latest 6 Months Bank statement of the Salary Account.
  • Self Employed
  • Last 2 Year ITR with Computation of Income
  • Last 2 Years Audited Balance Sheet
  • Last 6 Months bank statement
  • Proof of Turnover (Latest Sales / Service Tax Return)
  • Self Employed – Professional
  • Last 2 Year ITR with Computation of Income
  • Last 2 Years Audited Balance Sheet / P& L
  • Last 6 Months Bank Statement
  • Proof of Qualification

Documents required for Post-Sanction

  • Completed Loan Agreement signed by applicant and co-applicant
  • Disbursement request letter for tranche disbursement signed by the applicant
  • University Fee Demand Letter
  • Applicant’s Academic Progress Report
  • Fresh repayment instructions in case of full post-dated cheque or swap of existing repayment instructions.
  • Copy of the payment Receipt of the previous disbursement/semester issued by the institute.

Conclusion

HDFC education loan is a great option if you are looking for a good deal from a credible financial institution. Read all the loan related documents carefully before applying.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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