HDFC Bank Education Loan to Study Abroad: Eligibility, Interest, How to Apply

HDFC Bank Education Loan
Home » Education Loan » HDFC Bank Education Loan to Study Abroad: Eligibility, Interest, How to Apply

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.

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. 

BasisDetails
Maximum Loan AmountWith Collateral- Need-based financing
Without Collateral- Up to INR 45 lakhs
Interest RatesStarting from 9.50% p.a
Repayment Period14 years including the moratorium period
Courses Covered950+ (Undergraduate, postgraduate and Diploma)
Countries Covered35+ including the USA, UK, Canada Germany, France, Australia, China, Japan and many others
Universities Covered2100+
Processing Fee1% of the total loan amount or INR 1000 (whichever is higher)
Costs/ Expenses CoveredTuition 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’.
HDFC Loan Apply
  • 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 ChargesFees
Processing Fees1% of the total loan amount or INR 1000 (whichever is higher)
Delayed Installment Payment Charge@18% p.a plus applicable taxes
EMI Return ChargesINR 450
Prepayment ChargesNIL
Loan Cancellation ChargesNIL 

FAQs on HDFC Education Loan

Can I avail HDFC education loan to study abroad?

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.

What are the HDFC 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.

Does HDFC bank charge any fees for processing study abroad 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.

Can I get HDFC education loan without collateral?

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.

What is the HDFC education loan eligibility criteria?

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.

What are the HDFC bank education loan documents required?

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.

How can I apply for an HDFC education loan online?

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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About Shubhika Garg

Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.

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