HDFC Bank Education Loan

Note: Rates are indicative. Your actual rate depends on the institute, loan amount, and co-applicant profile. Students admitted to premier institutions (IITs, IIMs, and top-ranked foreign universities) may receive preferential rates. 

HDFC vs. SBI Education Loan 

A comparison table of HDFC Bank education loans and SBI education loans is given below: 

HDFC Bank Education Loan Moratorium Period

The moratorium period for the HDFC Bank education loan is the entire duration of the course plus 6 months to 1 year after graduation or 6 months after securing a job, whichever is earlier. For students under the Central Sector Interest Subsidy, interest during the moratorium period will be paid by the government. 

HDFC Bank Education Loan Schemes

HDFC offers three education loan options: an India Education Loan, a Foreign Education Loan, and the Central Government Interest Subsidy (CSIS) scheme. 

Common Features Across All Schemes 

• Co-applicant required 

• Repayment tenure up to 15 years 

• No hidden charges 

• Section 80E tax benefit on interest paid 

• Prepayment allowed with no charges 

Scheme Comparison 

Note: If your family's annual income is below Rs. 4.5 lakh, you may qualify for the Central Government Interest Subsidy Scheme, meaning you pay zero interest while studying and for 6 months after. Ask HDFC specifically about this when you apply. 

HDFC Bank EMI Calculator

Before applying, it is worth knowing what your monthly EMI is going to be. For example, a Rs.15 lakh loan for a tenure of 15 years at an interest rate of 10.50% p.a. comes to approximately Rs.20,305 per month. Use the calculator below to try different loan amounts and tenures. It takes you 10 seconds and helps you plan ahead. 

Use the EMI calculator  to figure out how much your premium is going to be once you have taken out a loan. Enter the loan amount, interest rate, and tenure, and click on “Calculate” and you can see the EMI and total interest payable.  

Eligibility Criteria for HDFC Education Loan 

To apply for an HDFC education loan, the applicants must be eligible. The eligibility requirements of HDFC Bank are fairly standard. Here is what you need to qualify: 

• You must be a resident of India 

• You must be aged between 16 and 35 years 

• All full-time programmes require a co-applicant; it can be your parents, spouse, in-laws, or guardian.  

Note: Your co-applicant doesn't need to be wealthy, but they do need a stable, documented income and ideally a SYBIL score above 700. This is often the most important factor in HDFC’s approval decisions. 

• You must be pursuing a graduate/post graduate degree and post graduate diploma courses at recognised institutions and universities accredited by the government, AICTE, UGC, and other organisations. 

• You must have obtained admission to a higher education course at a recognised institution in India or overseas via an entrance test or merit-based selection process. Direct admission to private universities may still qualify, but the bank assesses the institute’s reputation. 

Note: For foreign education loans above Rs.45 lakh, HDFC requires collateral (immovable property or fixed deposits) and for loans below Rs.45 lakh, unsecured loans are available at select partner universities. 

How to Apply for HDFC Bank Education Loan 

HDFC Bank education loan applications can be made online and offline. The steps to apply for an education loan online are as follows: 

Online Application

Step 1: Visit the official HDFC Bank website and navigate to “Loans”. 

Step 2: Click on “Education Loan” and fill out the application form with your personal, academic and co-applicant details. 

Step 3: Upload the scanned copies of the required documents. 

Step 4: Submit your application, and the bank representatives will contact you in 2 to 3 days. 

Note: Applying online is faster, and it lets you track your application status. If the loan amount is above Rs.7.5 lakh, you will likely need a branch visit at some point for document verification. 

Offline Application

Step 1: Visit the nearest HDFC Bank branch with all the required documents. 

Step 2: Ask for the education loan application form and fill it out. 

Step 3: Submit the application form along with the supporting documents. 

Step 4: Collect your application reference number. 

Note: HDFC Bank also accepts applications through BankBazaar where you can compare your eligibility and current offers before applying. 

Documents Required for HDFC Bank Education Loan 

To apply for an HDFC Education Loan, several documents need to be submitted. Documents vary depending on whether you're applying for a domestic or international loan, and whether collateral is involved. Here's what to prepare and having these ready before you visit the bank or apply online will save significant back-and-forth. 

For Indian Education Loans

Students Documents: 

• Duly filled application form 

• Latest photograph (signed across) 

• Admission letter from the institute with the fee break-up 

• Academic marksheets (SSC, HSC, graduation) 

• Identity proof 

• Age proof 

• Residence proof 

• Signature proof 

Co-applicant Documents 

• Salary slips of the last two months carrying the details of joining (salaried) 

• Bank statement of the salary account for the last six months (salaried) 

• ITR of last two years with computation of income 

• Bank statement for the last six months (self-employed) 

• Latest sales or service tax returns as proof of turnover (self-employed) 

• Proof of qualification (self-employed) 

• Completed loan agreement signed by applicant and co-applicant 

• Post-Dated Cheques (blank cheques for EMI payments you fill and submit at the time of loan disbursal) 

• ASH/SI Mandate (an auto-debit instruction to your bank that automatically deducts EMIs from your account each month) 

For Foreign Education Loans 

Student Documents:  

• Filled out application form 

• Passport-size photographs of applicant and co-applicant 

• Photo ID and resident proof (Aadhaar, Voter ID, passport, driving licence) 

• Marksheets of 12th exam, entrance exams, and subsequent years of education 

•  Scholarship documents 

• IELTS, TOEFL, GMAT, GRE marksheets, if applicable 

• Admission proof 

Co-applicant Documents 

• Bank statement of the salary account for the last eight months 

• Salary slips of the last three months or salary certificate on employers’ letter (salaried co-applicant) 

• ITR of the last two years (salaried and self-employed) 

• Lease deed, utility bills, title deed to serve as proof of office (self-employed) 

• Certified or provisional financial statements of last two years certified by a CA (self-employed) 

• Any other income proof that is not reflected in the above list may also be asked 

Additional Documents Required If You're Pledging Property as Collateral: 

• 7/12 extracts in case of land (revenue record showing landholding details and any recorded charges) 

• Registered sale agreement along with the society share certificate 

• Property title deed 

• Original registration receipt of the above agreement 

• Approved building plan 

• Encumbrance certificate (record of registered transactions/charges on the property) 

• Latest property tax bill along with receipts 

• Latest maintenance bill along with receipts issued by the builder or society 

• Allotment letter by the municipal corporation or authorised government authority like MHADA, CIDCO, etc. 

Fees and Charges for HDFC Bank Foreign Education Loan 

Students who want to pursue degrees in foreign institutions can seek HDFC’s Foreign Education Loan. The table below shows its fees and charges. 

Note: HDFC's fee structure is relatively clean. There are no loan cancellation charges, no prepayment penalties, and no rescheduling fees. The main cost to watch is the late payment penalty, which is steep. 

Fees and Charges for HDFC Bank Indian Education Loan 

Students who want to pursue degrees in Indian institutions can seek HDFC’s Indian Education Loan and its fees and charges are as follows: 

Note: Late EMI penalty is 18% p.a., and this compounds quickly. Set up an ACH or SI mandate from day one, so EMIs are deducted automatically, and you never miss a due date. 

Stamp duty and other statutory charges apply as per your state's laws. Ask your HDFC branch officer for the applicable amount in your state before signing the loan agreement. 

What Expenses Does HDFC Bank Cover? 

HDFC Bank education loan covers up to 100% of all expenses.  

For Indian Education Loans  

• Living expenses 

• Travel expenses 

• Accommodation 

• Examination fees 

• Library/laboratory fees 

• Purchase of books/ equipment/uniform 

For Foreign Education Loans 

• Tuition fees 

• Accommodation 

• Examination fees 

• Library/laboratory fees 

• Books and study materials 

Is HDFC Education Loan a Good Choice for You? 

HDFC education loans are a strong choice if you have secured admission at a premium institute or are planning to go abroad. It offers fast digital processing and access to large loan amounts without collateral, as well as flexible repayment options. The wide coverage of expenses is another strength of the HDFC education loa, making it a perfect choice for students seeking loans for studies abroad and in India.

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