May 12
0

HDFC Bank Education Loan

HDFC offers students an opportunity to follow their dreams and pursue a course of study of their choice with comprehensive education loan products. HDFC education loans can be availed with preferential interest rates for financing admissions in premier institutions in India and abroad with doorstep service for borrowers. Borrowers are also entitled to tax rebates for the interests they will pay on education loans under Section 80-E of the Income Tax Act 1961.

HDFC Bank education loans are available in two variants – i) Education Loan for Indian Education and ii) Education Loan for Foreign Education

Education Loan for Studies in India

Students aspiring to seek admission in top institutions recognized by UGC, AICTE, AIBMS or ICMR and in disciplines of their choice can do so without any hassles as HDFC presents a top-notch financial solution with multiple benefits. Offering faster loan processing with easy documentation, HDFC education loans are customized as per the applicant’s requirements.

HDFC Bank sanctions education loans up to Rs. 10 lakhs for studies in India.

  • No collateral is required to be submitted as security for loans up to Rs. 7.5 lakhs. Any loan amount exceeding that would require a collateral security in the form of residential properties, HDFC Bank Fixed Deposit, LIC, NSC or a KVP policy.
  • Borrowers availing loans up to Rs 7.5 lakhs can extend their repayment tenures up to 10 years and for loan amounts above Rs 7.5 lakhs the tenure can be chosen up to 15 years, after the moratorium period.
  • Applicants are not required to bring in any margin amount for loans up to Rs 4 lakhs but for loans above Rs 4 lakh, a margin of 5% is required.
  • Customers need to pay up to 1% of the loan amount as processing fees.
  • If the education loan is pre-closed during the moratorium period then up to 4% of the outstanding balance has to be paid as prepayment charges. If the loan is foreclosed after the expiry of the moratorium period, no prepayment penalty will be levied.
  • Along with the tuition fees, a HDFC education loan also covers examination fees, lab fees, caution deposit, building fund, books and equipment fees and other travel expenses.
  • HDFC education loans taken for studies in India will be disbursed directly to the institution as per the given fee structure
  • HDFC also provides an additional benefit of life insurance coverage for a student under the Insurance Protection – Credit Protect scheme from HDFC LIFE.
  • Borrowers and co-borrowers will be required to sign a loan agreement with HDFC after the education loan is sanctioned. Additional stamp duty has to be borne by the borrower. The applicant has to determine the mode of repayment for the loan in the form of ECS debits with 3 PDCs as security, standing instructions or as post-dated cheques.

Other Associated Charges
No Due Certificate / No Objection Certificate Nil
Duplicate of No Dues Certificate/NOC Nil
Solvency Certificate Not applicable
EMI Return Charges Rs.550/- per instance
Legal / Incidental Charges As per actuals
Late payment of EMI 24 % p.a. on overdue EMI amount
Credit Assessment Charges Not applicable
Duplicate Repayment Schedule Charges Rs. 200/-
Loan Re-Booking / Rescheduling Charges Up to Rs. 1000/-
Stamp Duty/Other Statutory Charges As per applicable laws
Loan Cancellation Charges Nil
Non-Standard Repayment Charges Not applicable
Cheque / ECS Swapping Charges Rs. 500/- per instance

Education Loan for Studies Abroad:

HDFC Bank in collaboration with Credila offers customized education loan solutions enabling students to pursue a degree of their choice in over 4000 premier institutions, across 36 countries worldwide. Credila provides 100% finance with attractive interest rates, flexible repayment and loan tenures. Getting an educational loan is very easy and simple with Credila’s hassle-free documentation process and personalized services like delivering loans at the customer’s doorstep. HDFC also gives the option of getting a loan sanctioned before students have confirmed their admissions to help them plan their finances and also improve their chances of getting admissions. Students can declare their approved HDFC education loans as an assured fund source while applying for admissions or for their Visa interviews.

  • Credila offers a range of interest rates for different borrowers depending on the academic background, institution, co-applicant details, and the collateral security furnished.
  • Credila finances up to 100% of the cost of education and also approves loan amounts above Rs 20 lakhs.
  • An HDFC education loan for foreign education covers expenses like hostel fees, book fees and travel along with the tuition fees.
  • Borrowers need to pay up to 1.5% of the loan amount as processing fees.
  • If the education loan is pre-closed within 12 months from the date of the agreement, then up to 4% of the principal amount plus taxes has to be paid as prepayment charges. If the loan is foreclosed after 12 months, then 2% of the principal amount plus taxes has to be paid as prepayment charges.
  • Borrowers can opt to pay just the simple interest during the course period and start regular repayments after the completion of the course.
  • The tuition fees and the hostel fees will be disbursed directly to the institution where the student has been admitted to.
  • No collateral is required to be submitted as security for loans up to Rs. 4 lakhs. Loans ranging between Rs 4 lakhs and Rs 7.5 lakhs require no collateral but a third party guarantee. Any loan amount exceeding Rs 7.5 lakhs would require a collateral security in the form of residential properties, HDFC Bank Fixed Deposit, LIC, NSC or a KVP policy.
  • For loan amounts up to Rs 4 lakhs, borrowers do not have to bring in any loan margin. But for loans exceeding that, the applicant has to put in a loan margin of 15%.
  • Education loans taken for studies abroad have to be repaid as monthly installments via ECS debits.
  • Applicants and co-applicants will be required to sign a loan agreement with HDFC after the education loan is sanctioned. Additional stamp duty has to be borne by the borrower. The applicant has to determine the mode of repayment for the loan in the form of ECS debits with 7 PDCs as security.

Other Associated Charges

No Due Certificate / No Objection Certificate

Nil

Duplicate of No Dues Certificate/NOC

Nil

Solvency Certificate

Not applicable

Charges for late payment of EMI

2 % per EMI plus taxes

Credit Assessment Charges

Not applicable

Nonstandard Repayment Charges

Not applicable

Cheque Swapping Charges

Up to Rs.500/- per instance plus taxes

Cheque Bouncing Charges

Up to Rs. 400/- per bouncing

Legal / Incidental Charges

At actual

Stamp Duty & other Statutory Charges

As per applicable laws

Loan Cancellation Charges

1% of the unveiled sanctioned loan amount plus taxes

Eligible Courses:

Graduation and Post-graduation courses with any of the following disciplines –

  • Management
  • Engineering (graduation only)
  • Medicine
  • Architecture
  • Hotel and Hospitality
  • Agriculture
  • Pure Science
  • MCA / MCM

Documentation required:

Education Loan for Studies in India:

Academic:

  1. Admission Letter with Fee break-up
  2. SSLC, HSC Graduation Mark sheets

Income Documents:

Salaried:

  1. Last 2 pay slips with date of joining
  2. 6 months’ bank statements

Self-employed:

  1. Last 2 years’ ITR
  2. Last 2 years’ Audited Balance Sheet
  3. 6 months’ bank statements
  4. Proof of Turnover

Self-employed Professional:

  1. Last 2 years’ ITR
  2. Last 2 years’ Audited Balance Sheet & P/L
  3. 6 months’ bank statements
  4. Proof of Qualification

Other Documents:

  1. Age Proof
  2. Signature Proof
  3. Identity Proof
  4. Residence Proof
  5. Duly Filled-in Application Form
  6. Photograph

Education Loan for Foreign Education:

Academic:

  1. Admission Letter with Fee break-up
  2. I-20 form for US applicants
  3. CAS letter for UK applicants
  4. SSLC, HSC Graduation Mark sheets
  5. GRE/GMAT/ TOEFL /IELTS Mark sheets

Income Documents:

Salaried:

  1. Last 3 payslips with date of joining
  2. 6 months’ bank statements
  3. Form 16 for the previous year along with ITR

Self-employed;

  1. Last 2 years’ ITR
  2. Last 2 years’ Audited Balance Sheet
  3. 8 months’ bank statements
  4. Proof of Turnover

Self-employed Professional:

  1. Last 2 years’ ITR
  2. Last 2 years’ Audited Balance Sheet & P/L
  3. 8 months’ bank statements
  4. Proof of Qualification

Other Documents:

  1. Age Proof
  2. Signature Proof
  3. Identity Proof
  4. Residence Proof
  5. Signature Proof – PAN Card/Passport for signature verification of the applicant and co-applicant / Credila’s completed signature authentication form / 10th or 12th Mark sheet with signature for students below 21 years.
  6. Duly Filled-in Application Form
  7. Photograph

Documents for subsequent disbursements:

  1. Subsequent Disbursement Request Letter from the Applicant and Co-Applicant
  2. University Fee Demand Letter
  3. Applicant’s Academic Progress Report for the previous semester
  4. Revised Repayment Instructions

Eligibility

  1. All applicants must be Indian nationals and aged between 16 to 35 years.
  2. Co-applicants are mandatory for full-time courses in India and abroad. The co-applicant should be a member of the immediate family.

 

 

SBI Education Loan

IDBI Bank Education Loan

Allahabad Bank Education Loan

Bank of India Education Loan

Punjab and Sind Bank Education Loan

Get in Touch with an Expert

    Categories

    Copyrights © 2017 - 2024 All Rights Reserved.