What expenses are covered under an HDFC education loan?

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.

An HDFC education loan is inclusive of a broad spectrum of academic and other costs associated with education, such as tuition fees, exam fees, books and study materials. It also covers living costs like accommodation and travelling, particularly among students in a foreign country, and the provision of full financial coverage during the course period.

Is collateral required for an HDFC education loan?

The loan up to â¹ 50 lakh does not need collateral, and thus many students can receive funding easily. In cases of large amounts of loans, though, collateral might be required in the form of property, fixed deposits and/or other approved financial assets depending on the instructions of the lender.

What is the repayment period for an HDFC education loan?

The terms and conditions of the loan, depending on the loan amount taken, can provide a tenure of repayment ranging from 15 years. It also offers a period of moratorium which spans the duration of the course and also an extra 6-12 months, whereby the students would get a chance to get employment before they begin repayments.

Can I get tax benefits on an HDFC education loan?

Yes, tax deductions can be made by the borrowers on the interest paid under Section 80E of the Income Tax Act. This advantage works in cutting the total financial burden through the repayment period, and thus the loan becomes manageable with time.