HDFC Educational Loan for Indian Education

About the HDFC Educational Loan for Indian Education

The HDFC education loan is targeted to fund full-time undergraduate and postgraduate programme students in India. It is very broad in the costs it covers, including tuition fees, exam fees, books and other academic costs. The scheme will offer a flexible repayment plan with good interest rates and this will ease the burden of students whose education cost is soaring up and they will receive quality education without compromising it in any way.

Secondly, the loan facilitates people intending to study in foreign countries. It will cover important charges (course fees, accommodation and travelling) and the foreign academic experience will be a smooth sailing experience. A supplementary financial product, such as a child education plan, is another way that parents will have easier access to long-term education investment.

Rate of Interest for HDFC Education Loan

The interest rates of HDFC education loans are as follows: they are affordable with flexible rates that suit all financial scenarios.

For studies in India: 9.25% to 10.33% per annum, depending on the loan amount and applicant profile.

Features of the HDFC Education Loan Scheme

The HDFC Education Loan offers several features that make the financing of education a stress-free, easy process. These include:

• Loan Amount: The ceiling of the loans is 150 lakh, which can be utilised in financing the education and most of the education costs, including tuition, books and even living costs.
• No Collateral: In loans below 50 lakh, security is not required, and therefore, it is more available to a broad category of borrowers. In the event that the loan is more than this, collateral may be provided.
• Flexible Repayment Terms: The loan payment is also flexible; 15 years and a moratorium that is dispersed over the loan period, as well as 6-12 months.
• Tax Benefits: The interest that is charged on an HDFC education loan investment plan may also be deductible under Section 80E of the Income Tax Act, and this will also help you save on the amount of taxes to be paid and will also help you make a saving on the loan repayment stage.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Eligibility of the HDFC Education Loan Scheme

The eligibility criteria to be passed to avail an HDFC education loan are as follows:

• The HDFC education loan can be used by applicants who are between 16 and 35 years.
• One has to be an Indian resident.
• An applicant should have an admission confirmation letter in a recognised institution either in India or elsewhere.
• Any loan must have a co-applicant to the loan such as a parent or husband.

Documents Required for HDFC Education Loan

In order to take an HDFC Education Loan, you will need to provide it with the following documents to allow its approval:

• Identity Proof: PAN card, Aadhaar card, voter ID or passport.
• Address Proof: utility bills, Aadhaar card or passport.
• School work: Mark sheets, certificate of previous school.
• Admission Proof: This is the offer letter or admission confirmation by the institution.

Income Proof:

• To those who are salaried: The latest 2 payslips and 6 months of bank statements.
• In the case of self-employed people: Last 2 years' income tax returns, bank statements of the past 6 months and evidence of turnover (sales/service tax returns).
• Application Form that is completed: Signed.
• Photographs: The applicant and co-applicant should each have a passport-sized photograph.

People also read: Sukanya Samriddhi Yojana

Most Important Terms and Conditions

It is important to be well-acquainted with all those terms and conditions of the education loan in order to be well-informed of the agreement. Here are the terms and conditions for this loan:

• Processing Fees: No processing fee on loans worth up to 7.5 lakh rupees. In case of loans over 7.5 lakh, a processing fee of 1% of the loan amount is charged.
• Collateral: There are residential property, HDFC bank fixed deposit, certain debt mutual funds, insurance policy, and NSC/KVP, among many others.
• Prepayment Charges: Nil.

You may also add a child education calculator to this loan to enhance financial planning.