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  • HDFC Bank Education Loan

    HDFC Bank Education Loan
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    Overview:

    Set up as a private sector bank in 1994, the Housing Development Finance Corporation Limited (HDFC) offers tailor made education loan products catering to students applying for admissions in India and abroad. HDFC promises complete transparency to customers while sanctioning an education loan. As a market leader in retail loan products, HDFC provides education loans with fast disbursements, easy documentation and higher loan amounts with competitive rates and charges. Students can benefit immensely with a HDFC education loan as it covers all major expenses incurred during the tenure of a course.

    Feature and Benefits of the HDFC Educational 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.
    • A 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 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.

    Central Government Interest Subsidy Scheme for HDFC Bank Education Loans:

    The interest subsidy scheme for education loans has been introduced by the HRD Ministry to financially support students applying for admissions from economically weaker sections with a gross income of up to Rs 4.5 lakhs. Students can apply for the subsidy benefit with the following documents - Original income certificate, Interest Subsidy Agreement and an original Bonifide student letter from the institution. Additional charges like stamp duty and franking charges have to be borne by the applicant. The interest rate subsidy scheme is applicable only for admissions to approved technical and professional courses from recognized institutes after the completion of Class 12. A full interest subsidy benefit is available for the moratorium period.

    HDFC Bank Education Loan FAQs:

    1. Does HDFC provide a moratorium or holiday period for an education loan?
    2. Yes, HDFC offers a moratorium period including the study period plus 1 year or 6 months after the student is employed, whichever is earlier.
    3. Is the moratorium period for HDFC education loans available for all types of courses?
    4. The repayment holiday will be applicable only for select courses and it is at the discretion of the bank.
    5. Is the student required to make any form of repayment during the moratorium period of a HDFC education loan?
    6. Applicants have the option of servicing the interest during this period, if they choose to do so.
    7. How does a student consider himself eligible for a HDFC education loan for studies abroad?
    8. Indian citizens who have secured admission to a professional or technical course in any reputed university abroad are eligible for a HDFC education loan.
    9. Why is it important to get an education loan sanctioned from HDFC before getting an admission?
    10. HDFC advises students to get a loan sanction before an admission as this will improve their chances of acceptance at universities across the globe. With hassle-free loan processing, students also have the option of showing their definite source of funds while applying for a Visa or for admissions to various colleges. DISCLAIMER: Information contained and transmitted by this email including any attachment is proprietary to BankBazaar.com and is intended solely for the addressee/s, and may contain information that is privileged, confidential or exempt from disclosure under applicable law. Access to this e-mail and/or to the attachment by anyone else is unauthorized. If this is a forwarded message, the content and the views expressed in this email may not reflect those of BankBazaar.com. If you are not the intended recipient, an agent of the intended recipient or a person responsible for delivering the information to the named recipient, you are notified that any use, distribution, transmission, printing, copying or dissemination of this information in any way or in any manner is strictly prohibited.
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