HDFC Educational Loan for Indian Education

About the Scheme

The HDFC education loan is tailored to assist students pursuing full-time undergraduate, postgraduate, and postgraduate programmes in India. The loan meets tuition fees, examination fees, books and other financial expenses that the student might require. The goal of this scheme is to reduce high education costs through flexible repayment and low interest rates. As education is becoming increasingly expensive, this loan is a great tool for parents and students to avoid sacrificing quality education.

The HDFC loan is also unique in that it is meant to cover expenses for students who may want to study abroad. It guarantees the cost of everything that is needed to attend the course: course fee and other expenses such as accommodation and travel.  Furthermore, parents can use additional financial tools like a child education plan to make education more affordable in the long run.

Rate of Interest

The following are the rates of interest for HDFC Education Loans, which are designed to be affordable, with flexible options that cater to various financial situations:

For studies in India:  9.55% to 13.25% per annum, depending on the loan amount and applicant profile.

Features of the Scheme

HDFC’s Education Loan comes with several features that make financing education more manageable and stress-free. These include:

1. Loan Amount

   Loans can go up to ₹150 lakh for education covering most educational expenses like tuition, books, and even living costs.

2. No Collateral

   For loan amounts up to ₹50 lakh, no collateral is required, making it more accessible for a wider range of applicants. For loans exceeding this amount, collateral may be needed.

   Investment

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   Secure your child’s future with or without you

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   ₹10,000/Month

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   ₹1 Crore^*

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3. Flexible Repayment Terms

   You can repay the loan over a flexible period of up to 15 years, including a moratorium period that covers the duration of the course plus an additional 6-12 months.

4. Tax Benefits

   The interest paid on the HDFC education loan qualifies for a tax deduction under Section 80E of the Income Tax Act, which can reduce your taxable income and provide you with savings during the loan repayment phase.

Eligibility of the Scheme

To qualify for the HDFC education loan, the following eligibility criteria must be met:

• One must be between 16 to 35 years of age to apply for the HDFC education loan.

• One must be an Indian resident.

• One must have an admission confirmation letter from a recognised institution in India or abroad.

• One must include a co-applicant, such as a parent or spouse, for all loans.

Documents Required

When applying for an HDFC Education Loan, you’ll need to provide these documents to help facilitate the approval process:

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

• Address Proof: Utility bills, Aadhaar card, or passport.

• Academic Records: Mark sheets and certificates of previous education.

• Admission Proof: Offer letter or admission confirmation from the institution.

• Income Proof:

  • For salaried individuals: Latest 2 salary slips and 6 months of bank statements.

  • For self-employed individuals: Income tax returns for the last 2 years, bank statements for the last 6 months, and proof of turnover (sales/service tax returns).

• Completed Application Form: Filled out and signed.

• Photographs: Passport-sized photos of the applicant and co-applicant.

Most Important Terms and Conditions

It’s crucial to familiarise yourself with these terms and conditions of the HDFC Education Loan to ensure a clear understanding of the agreement:

• Processing Fees: No processing fees for loan amounts up to ₹7.5 lakh. For loans above ₹7.5 lakh, a processing fee of 1% of the loan amount is applicable.

• Collateral: Residential property, HDFC Bank fixed deposits, some debt mutual funds, insurance policies, and NSC/KVP are just a few of the many options available to you.

• Prepayment Charges: Nil.

To further support financial planning, you can combine this loan with a child education allowance for added convenience.