HDFC Bank Education Loan
HDFC Bank Education Loan is a financing option available for students pursuing their studies in India or abroad. The loan provides a maximum amount of ₹150 lakhs with a repayment tenure of up to 15 years, starting at an interest rate of 9.50% p.a. Eligible borrowers must be between 21 and 65 years old, possess a valid passport, and have a good credit score. A valid offer letter from a recognized educational institution is also required. The loan covers various expenses such as tuition fees, hostel fees, examination fees, books and stationery, lab fees, travel expenses, living expenses, insurance premium, and incidental expenses. Additionally, the interest paid on the loan is eligible for tax benefits under Section 80E of the Income Tax Act, 1961. To apply, individuals can visit the HDFC Bank website or their nearest branch.
Education loan Eligibility:
- Indian resident: The applicant must be a resident of India to be eligible for an HDFC Bank education loan.
- Age requirement: The applicant should be between 16 and 35 years of age to qualify for the loan.
- Co-applicant: A co-applicant is mandatory for all full-time programs. The co-applicant can be the parent/guardian or the spouse/parent-in-law of the student.
- Admission to higher education course: The student must have secured admission to a higher education course in recognized institutions in India or abroad. The admission should be based on entrance tests or merit-based selection processes.
- Approved courses: The loan is applicable for courses leading to graduate, postgraduate degrees, and PG diplomas. These courses should be conducted by recognized colleges/universities that are recognized by UGC (University Grants Commission), Government, AICTE (All India Council for Technical Education), AIBMS (All India Board of Medical Sciences), ICMR (Indian Council of Medical Research), and other relevant authorities.
- Recognition of institutions: The institutions where the course is pursued should have recognition from UGC, Government, AICTE, AIBMS, ICMR, or other relevant authorities.
Documents Required:
Pre-Sanction:
- Academic Documents: Institute admission letter with fee break-up and SSC, HSC, and graduation marksheets.
- KYC Documents: Age proof, signature proof, identity proof, and residence proof.
- Income Documents for Salaried Individuals: Latest two salary slips with date of joining details and the latest six months' bank statement of the salary account.
- Income Documents for Self-Employed Individuals: Last two years' Income Tax Returns (ITR) with computation of income, last two years' audited balance sheet, last six months' bank statement, and proof of turnover (latest sales/service tax return).
- Income Documents for Self-Employed Professionals: Last two years' ITR with computation of income, last two years' audited balance sheet/profit and loss statement, last six months' bank statement, and proof of qualification.
- Other Documents: Completed application form and a recent photograph signed across.
Post-Sanction:
- Loan Agreement: Completed loan agreement to be signed by the applicant and co-applicant. Stamp duty needs to be paid by the customer as per relevant state laws.
- Repayment Instructions: Post-Dated Cheques (PDCs), ACH (Automated Clearing House), or Standing Instruction (SI) mandate for repayment. Three security PDCs required for ACH and SI mode of repayment.
For Subsequent Disbursements:
- Disbursement Request Letter: A letter requesting tranche disbursement, duly signed by the customer.
- University Fee Demand Letter: A letter from the university or educational institution stating the fee requirement for the specific tranche.
- Academic Progress Report: The applicant's academic progress report from the previous semester.
- Fresh Repayment Instructions: In case of full Post Dated Cheques (PDC) or swapping existing repayment instructions, new repayment instructions need to be provided.
- Copy of Payment Receipt: A copy of the payment receipt issued by the institute for the previous disbursement/semester.
Process to apply for education loan:
Eligibility check:
- Before applying for the loan, it is essential to verify if you meet the eligibility criteria.
Document collection:
- Gather the necessary documents for HDFC Bank Education Loan, which include personal, educational, and collateral documents.
Personal documents:
- PAN card
- Aadhaar card
- Passport
- Latest 3 months' bank statement
- Latest 3 months' salary slips
- Income tax returns for the last 2 years
Educational documents:
- Mark sheets of 10th, 12th, and graduation
- Admission letter from the educational institution
- Course fee breakdown
Collateral documents:
- If opting for a secured loan, provide collateral documents like residential property, HDFC Bank fixed deposit, or insurance policies.
Application method:
- Choose between online or offline application processes.
- Online application can be done through the HDFC Bank website.
- Offline application requires visiting the nearest HDFC Bank branch.
Submission of application form:
- Submit the completed application form along with the required documents to HDFC Bank.
Loan approval:
- HDFC Bank will process the application and approve the loan within 15 to 30 days.
Loan disbursement:
- Upon approval, HDFC Bank will disburse the loan amount directly to the educational institution.
Loan repayment:
- Repayment of the loan begins after a grace period of 6 months.
- The loan can be repaid over a period of up to 15 years.
Expenses Covered in education loan scheme:
Expenses Covered:
- Tuition fees
- Hostel fees
- Examination fees
- Books and stationery
- Lab fees
- Travel expenses
- Living expenses
- Insurance premium
- Other incidental expenses
Courses covered in education loan scheme:
Courses Covered:
- Undergraduate courses
- Postgraduate courses
- Diploma courses
- Doctoral courses
- Professional courses
- Technical courses
- Language courses
- Foreign education
Schemes:
Scheme 1:
Education Loan for Indian Education
- Loan amount: Up to ₹150 lakhs
- Repayment tenure: Up to 15 years
- Interest rate: Starting from 9.50% p.a.
- Designed for students pursuing education within India.
Scheme 2:
Education Loan for Foreign Education
- Loan amount: Up to ₹200 lakhs
- Repayment tenure: Up to 15 years
- Interest rate: Starting from 9.50% p.a.
- Specifically for students planning to study abroad.
Scheme 3:
Top Ranked Colleges and Universities Scheme
- Preferential interest rates available for students admitted to top-ranked colleges and universities.
- Interest rate: Starting from 9.50% p.a.
- Provides additional benefits for those studying at prestigious educational institutions.
Note: The information provided about education loans is sourced from official guidelines. However, for complete satisfaction and up-to-date details, we recommend visiting the official website of the respective financial institution. The official website will provide comprehensive and accurate information regarding eligibility, application process, documentation requirements, terms, and conditions
