HDFC Bank is a top choice for education loans, especially for those looking to study abroad. They offer quick and hassle-free education loans with a simple documentation process and speedy transfers. The HDFC Bank education loan disbursement process is completely online, where the required funds for covering tuition fees, accommodation costs, and other expenses are directly transferred to the university.
For the transfer of funds to the university, HDFC Bank follows a semester-wise approach. This means that the funds are transferred in alignment with the completion of each semester, easing the financial burden on students. Let’s understand the process of HDFC Bank Education Loan Disbursement process in detail.
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What is the HDFC Bank Education Loan Disbursement Process
The HDFC Bank education loan disbursement process involves various stages, like the submission of loan applications, verification, and documentation processes. Once these stages are successfully completed, the bank proceeds to disburse the educational loan amount. The disbursement process will be the same for the HDFC Education loan or HDFC Personal Loan for Education. Here’s a detailed breakdown of the process:
Loan Application Submission
Submit your loan application along with supporting documents online or by visiting the nearest branch. You can also use the HDFC Bank Vidya Lakshmi Portal for education loan applications. Fill in all the details carefully and check properly so that there should not be any discrepancies.
Verification Process
After the submission of the education loan application form, the bank initiates the verification process. During this period, the bank assesses your eligibility based on factors such as income, credit history, university, and course details. Also, if you are taking a secured loan, the bank will check the details of the collateral.
Loan Sanction Letter
Upon successful verification, the bank provides you with an education loan sanction letter. This document outlines crucial details such as the total loan amount, interest rate, repayment period, and other terms and conditions. You can submit the same letter to your university as proof of financial evidence.
Agreement and Disbursement
If you agree to the terms and conditions of the education loan outlined in the sanction letter, the bank proceeds to initiate the education loan disbursement process. The amount for the tuition fee and accommodation cost will be transferred to the university account within 72 hours. Please note that the tuition fee will be transferred only for the first semester. The remaining disbursement will be done gradually as per the upcoming semesters.
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Documents Required for Education Loan Disbursement
After the education loan sanction, certain documents must be submitted in order to initiate the disbursement process. Failure to submit these documents properly may result in the cancellation of the loan disbursement. The required documents include:
- University acceptance letter or admission letter
- Copy of the Visa approval letter of the primary applicant
- Copy of the air ticket of the primary applicant
- Details of Accommodation
- Documents containing details of the health and travel insurance of the student
HDFC Bank Education Loan Disbursement Example
An illustrative example of the education loan disbursement process can be understood by the below-mentioned story. Raman is a student admitted to Oxford University, UK. With a course fee of INR 20 lakh for 2 years, Manish secured an education loan of INR 16 lakh. At the time of loan disbursement, the bank transferred INR 4 lakh towards the first semester’s tuition fees, with the remaining instalments ready for disbursement after the completion of each semester.
FAQs on HDFC Bank Education Loan Disbursement
HDFC Bank ensures the completion of the loan disbursement process in less than 48 hours after the verification process.
The bank transfers the loan amount directly to the university account, and the students do not receive any amount in their savings accounts.
If a student discontinues studies before completing the course duration, they must inform the bank to halt further disbursements. However, the student remains liable to repay the loan as per the agreed terms.
HDFC Bank offers education loans with an interest rate ranging from 9-13% per annum. The students can get education loans from HDFC Bank at a fixed rate of interest.
HDFC Bank education loan covers various expenses such as tuition fees, accommodation fees, laptop fees, two-wheeler expenses, and other study-related costs.
Understanding the HDFC Bank education loan disbursement process and other related terms and conditions is very important. Always read the complete terms and conditions before applying for an education loan.
To know more about the education loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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