HDFC Education Loan: All You Need to Know
:Financing Education has become a real challenge in today’s circumstances given the ever increasing inflation rate and cost. To reduce the rigours of financing and help students achieve their goal, The Housing Development Finance Corporation Limited of HDFC Bank as more popularly known as, has come forward to lend support, through the HDFC Bank Education Loans.
HDFC Bank offers tailor made education loan products catering to students applying for admissions in India and abroad. What makes HDFC Bank different from the other banks is its completely transparent process while sanctioning an the HDFC Bank education loan.
HDFC Student loans come with fast disbursements, easy documentation and higher loan amounts with competitive rates and charges. Students can benefit immensely with an HDFC Bank education loan as it covers all major expenses incurred during the tenure of a course.
The HDFC Bank offers three different types of education loans to suit the various types of student requirements. Let’s take a look at the table below and understand these three types of loans.
|Parameters||HDFC – For Indian Education||HDFC – For Foreign Education||Central Government Interest Subsidy Scheme|
|Objective||Students pursuing higher education in India||Students pursuing higher education overses||Weaker sections of the society|
|Eligibility||Indian citizen With a confirmed admission for higher studies in a premier institution in India.||Indian Citizen with a secured admission in any regular full time degree or diploma courses offered by Premier Institutes in India||Indian citizen with a secured admission in course at technical and skilled training institutes across India|
|Age||16-35 years||16-35 years|
|Quantum of loan||Min. 7.5 Lakhs without ant collateral.||20 Lakhs||Need based|
|Repayment period||15 years||15 years||15 years|
The HDFC Loan interest rate varies periodically depending upon the bank’s base lending rates and several other factors. Currently, The HDFC Bank Education Loan interest rate stands from 11% to 14%.
The aspiring students can apply for the HDFC Bank Education Loan, either by visiting the nearest HDFC Branch, filling the forms and submitting them with the relevant supporting documents or online. To apply online, follow these simple steps;
- Visit the HDFC Bank Education Loan website, https://www.hdfcbank.com/personal/products/loans/educational-loan
- In the immediate next page, click on the option ‘Log in’
- Log in to access your account by selecting any one of the three options
- Follow the subsequent instructions to complete the online apply process
- First time users can click on the option Register and move forward
HDFC Bank in collaboration with Credila, offers customized HDFC student loan solutions enabling students to pursue a degree of their choice. The HDFC Credila education loan provides 100% finance with attractive interest rates, flexible repayment and loan tenures. Getting an educational loan is very easy and simple with HDFC 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.
Let’s take a look at some of the key features of the HDFC Credila Education Loan
- The HDFC Credila offers a range of interest rates for different borrowers depending on the academic background, institution, co-applicant details and the collateral security furnished.
- The HDFC Credila Education Loan finances up to 100% of the cost of education.
- It also approves loan amounts above Rs 20 lakhs.
- HDFC Credila Education Loan covers foreign education expenses like hostel fees, book fees and travel along with the tuition fees.
- Borrowers in the HDFC Credila Education Loan scheme have 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 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.
- 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.
HDFC Bank Education Loans – Frequently Asked Questions
|Does HDFC Education Loan provide a holiday period for repayment of loans?||Yes. This facility exists with the HDFC Bank Educational Loan|
|Is the holiday period applicable for loans towards any tine of course selected?||Unfortunately the holiday period for repayment of the loan is limted to only certain categories of courses opted for.|
|How is a student eligible to avail home loan for education overseas?||The Student is eligible by securing his admissions to the programme overseas and producing a proof for having done so.|
|Is an Aadhar card mandatory for applying HDFC Education Loan?||Yes. The Aadhar card is mandatory to apply for the loan|
|What are the three different types of HDFC education Loans available||The three different types of loans available are;
Loans for studying in India
Loans for studying overseas
Central Government Interest Subsidy scheme.