Don’t let a lack of finances stop you from pursuing higher education in a foreign country. HDFC Bank is one of the best private banks in India that provides education loans to study abroad in any country and university you wish to. From low and competitive interest rates, quicker loan sanctions and processing time to hassle-free documentation and fast disbursal, HDFC education loans are the most preferred choice among aspiring students.
The bank covers a wide range of courses and provides 100% financing to cover all your study-abroad and related expenses. Applicants can take secured as well as unsecured educational loans from HDFC Bank. Read this blog to find out more about the maximum amount, interest rates, eligibility criteria, how to apply and other important information.
Table of contents
Overview of HDFC Bank Education Loan to Study Abroad
HDFC Banks provide education loans to study abroad with no upper limit. It means that the applicant can avail of financial assistance as per their needs and requirements. This is only possible if you pledge an asset/ collateral/ security with the bank. Unsecured education loans can only be availed up to INR 45 lakhs.
The interest rates start from 9.50% p.a. These loans cover 950+ courses including MS, MBA, executive management courses and much more across 35+ countries for over 2100+ universities. The bank charges 1% or INR 1000 (whichever is higher) as a processing fee for study abroad education loans. The maximum tenure for repayment of the loan is 14 years including the moratorium period.
Applicants can opt for HDFC Life group loan Suraksha for education loans that provide cover for the loan repayment amount in case of any unforeseen circumstances like the death or disability of the borrower.
| Basis | Details |
| Maximum Loan Amount | With Collateral- Need-based financing Without Collateral- Up to INR 45 lakhs |
| Interest Rates | Starting from 9.50% p.a |
| Repayment Period | 14 years including the moratorium period |
| Courses Covered | 950+ (Undergraduate, postgraduate and Diploma) |
| Countries Covered | 35+ including the USA, UK, Canada Germany, France, Australia, China, Japan and many others |
| Universities Covered | 2100+ |
| Processing Fee | 1% of the total loan amount or INR 1000 (whichever is higher) |
| Costs/ Expenses Covered | Tuition fees Accommodation expenses Examination fees Library/laboratory fees Purchase of books/equipment/ instruments/ uniforms Purchase of computers/ laptops Travel fare is restricted to one economy class return ticket between India and the country of study. |
HDFC Bank Education Loan Interest Rates
HDFC Bank education loan interest rates range from 9.50% p.a to 13.55%. There are no fixed interest rates and the bank considers floating interest rates. This means that the interest rates in HDFC education loans are dynamic and subject to change with changes in market trends and RBI guidelines on education loans.
Students can also claim tax rebates on education loans under Section 80E of the Income Tax Act. It means that the interest paid on the HDFC Bank education loan can be claimed for deduction from the total taxable income.
Please note that HDFC Credila is a NBFC specialising solely in education loans. You can check HDFC Credila education loan interest rates here.
Also Read: Compare the education loan interest rates of different lenders and avail study abroad education loans at lowest interest rates in 2024.
Eligibility Criteria
To be eligible for an HDFC Bank education loan to study abroad, the applicant must fulfil the eligibility criteria. The basic criteria is that the applicant and co-applicant must be an Indian citizen. Also, they must be capable of pledging an asset in certain cases. Let’s look at the major eligibility criteria to avail of abroad education loans from HDFC Bank-
- Applicant and Co-applicant must be Indian citizens
- Applicant must be 16-35 years of age
- The admission must be secured through fair means, i.e through entrance examination, merit-based selection process
- Admissions only in recognized universities to be considered
- Applicant must be enrolled in full-time courses approved and recognized by authorities
- Ability to give collateral in certain cases
- Co-applicant must have an Indian bank account with writing cheque facilities
- The admission must be confirmed before the disbursement of funds
Documents Required
The applicant must submit the documents to HDFC Bank to verify the same and process the education loan. It is important to submit bonafide certificates and not forge any of the documents to ensure quicker loan processing time and a faster HDFC Bank education loan disbursement process. These documents include documents related to KYC, academics, income proof, collateral verification and others. Let’s look at the checklist-
Pre Loan Sanction
- Duly filled application form
- Passport size photographs
- Aadhaar Card/ PAN Card/ Voter ID
- Class X, XII, graduation mark sheet
- Latest 2 salary slips carrying the date of joining (For salaried individuals)
- Latest 6 months’ bank statements of the salary account (For salaried individuals)
- Last 2 years ITR with the income computation (For self-employed)
- Last 2 years audited Balance Sheet (For self-employed)
- Admission letter from the university
- Breakup of fee structure of the university
Post Loan Sanction
- Completed loan agreement to be signed by the applicant and co-applicant
- PDCs/ ACH or SI Mandate
- 3 security PDCs in case of ACH and SI mode of payment
Also Read: Check out the FAQs on the Restructuring 2.0 Scheme of RBI that provides benefits to the borrowers affected by the COVID-19 pandemic.
How to Apply for an HDFC Education Loan?
Applicants can apply for an HDFC Education loan online, through an ATM, using the Loan Assist App. They can also visit the nearest bank branch and meet the concerned representative in person for further assistance. The process requires minimal documentation, more so if you are a pre-approved HDFC Bank customer. Follow these steps to apply online-
- Visit the official website of the bank at www.hdfcbank.com.
- On the main page, Select ‘Loans’ under ‘Select Product Type’.
- Now, select ‘Educational Loans’.
- Click on ‘Apply Online’.
- You will be redirected to Vidya Lakshmi Portal.
- Register yourself and log in using your student credentials.
- Click on ‘Loan Application Form’.
- Fill in the personal details and upload the necessary documents.
- Submit once done and wait for the call from the bank representative to connect with you.
Fees and Charges
HDFC Bank charges a certain amount for EMI returns, processing fees and delayed instalment payments. However, there are no charges for prepayment of HDFC education loans or loan cancellation charges. There are no cheque/ ACH swapping charges as well. The charges mentioned in the table below are exclusive of GST and applicable taxes may be levied as per government policies.
| Type of Charges | Fees |
| Processing Fees | 1% of the total loan amount or INR 1000 (whichever is higher) |
| Delayed Installment Payment Charge | @18% p.a plus applicable taxes |
| EMI Return Charges | INR 450 |
| Prepayment Charges | NIL |
| Loan Cancellation Charges | NIL |
FAQs on HDFC Education Loan
Yes, aspiring students can avail of HDFC education loans for foreign studies. HDFC Banks provide education loans to study abroad with no upper limit. You can also avail of unsecured HDFC education loans up to INR 45 lakhs.
HDFC Bank education loan interest rates range from 9.50% p.a to 13.55%. There are no fixed interest rates and the bank considers floating interest rates. This means that the interest rates in HDFC education loans are dynamic and subject to change with changes in market trends and RBI guidelines on education loans.
The bank charges a processing fee of 1% of the total loan amount or INR 1000 (whichever is higher). This is only applicable for HDFC education loans to study abroad. There is no processing fee for domestic education loans.
Yes, aspiring students can avail of unsecured education loans from HDFC Bank up to INR 45 lakhs. There is no need to pledge or mortgage any asset with the bank. However, the interest rates on such loans are more due to higher risks.
To be eligible for an HDFC Bank education loan to study abroad, the applicant and co-applicant must be an Indian citizen. The applicant should be between 16-35 years of age and must have secured admission through a merit-based selection process or entrance examination.
These HDFC bank education loan document checklists include documents related to KYC (Aadhaar, Voter ID, PAN Card), academics (class X, XII and graduation mark sheets), income proof (salary slips, ITR, and bank statements), collateral verification documents and passport.
Applicants can apply for an HDFC Education loan online, through an ATM, using the Loan Assist App. They can also visit the nearest bank branch and meet the concerned representative in person for further assistance.
This was all about the HDFC Bank education loan to study abroad. Make sure to read the terms and conditions carefully and keep the documents handy to attach with the duly filled application form.
To know more about education loans, 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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