HDFC Education Loan for Foreign Education

About the HDFC Education Loan Scheme

The Education Loan for Foreign Education offered by HDFC Bank makes the student's foray into higher education abroad easier financially. The bank manages to provide pre-admission loan sanctions against nominal documents. This approach ensures that education costs remain manageable for both current students and future generations, making it a valuable part of the child investment plan.

Rate of Interest

The interest rates vary according to the loan amount and the applicant's profile. Here is an overview of how the interest rates are detailed: 

• Interest Rates: The interest ranges from 9.55% to 13.25% for foreign education loans.

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Features of the Scheme

The scheme provides financial support for higher education with the following features:

• Loan Amount: Up to ₹45 lakhs for unsecured loans, with the possibility of higher amounts for secured loans based on collateral and other criteria.

• Tax Benefits: Interest paid on the loan is eligible for tax deductions under Section 80E of the Income Tax Act.

Eligibility of the Scheme

To be eligible for HDFC Bank’s Education Loan for Foreign Education, one must:

• Be an Indian citizen.

• Have confirmed admission to a recognised foreign university or institution.

• Possess a strong academic record.

• Have a parent or guardian with a stable income as a co-applicant.

Documents Required

To complete your application for the HDFC Education Loan for Foreign Education, you will need to submit the following documents:

• Identity Proof: Aadhaar card, passport, or voter ID.

• Address Proof: Utility bills, bank statements, or rental agreements.

• Admission Letter: Official confirmation from the foreign university.

• Academic Records: Transcripts and certificates of previous education.

• Income Proof: Salary slips or income tax returns of the co-applicant.

• Bank Statements: Recent statements of the co-applicant.

Most Important Terms and Conditions

Before applying, it is essential to understand these terms that come with the loan:

• Charging Processing Fee: This fee is usually a fixed percentage of the loan amount and is non-refundable.

• Collateral: Necessary for the amount that exceeds the specified limit; lags according to the applicable loan amount, budget, and applicant profile.

• Repayment: Starts after course completion with a flexible term, following a moratorium period.