HDFC Education Loan Vs Saraswat Bank Education Loan

HDFC Education Loan Vs Saraswat Bank Education Loan
Home » Education Loan » HDFC Education Loan Vs Saraswat Bank Education Loan

HDFC Bank is one of the oldest and most popular private banks in India. It offers education loans up to INR 1.5 crore at affordable interest rates. Along with the loan the bank also provides forex services such as currency exchange, forex prepaid cards, inward and outward remittances etc.

Saraswat Bank, on the other hand, is an urban cooperative banking institution in India providing education loans and other major financial services to students. It is a scheduled bank headquartered in Mumbai and very popular among students as loan processing is very efficient and easy. Let’s check some major differences between the HDFC Education Loan and the Saraswat Bank Education Loan to study abroad.

HDFC Bank Education Loan: Major Highlights

HDFC Bank offers flexible and comprehensive education loans for students. It provides need-based financing with collateral and up to INR 45 lakhs without collateral. The interest rates start from 9.50% per annum, and the repayment period extends up to 14 years, including the moratorium period. Check more details below:

  • They provide education loan that covers over 950 courses, including undergraduate, postgraduate, and diploma programs.
  • HDFC Education Loans can be used for education in more than 35 countries, such as the USA, UK, Canada, Germany, France, Australia, China, and Japan.
  • The loans cover over 2,100 universities worldwide and the processing fee for the loan is only 1% of the total loan amount or INR 1,000, whichever is higher.

Also Read: Applied for a loan from HDFC Bank? Check here all about HDFC Bank education loan disbursement

Saraswat Bank Education Loan: Major Highlights

Saraswat Bank is an urban cooperative bank in India and one of the most popular for education loans. It offers education loans with a maximum amount of up to INR 1.5 crores for studying abroad. The process of getting a Saraswat Bank education loan is very easy and you can apply for the same through the official website of the bank. Check more details below:

  • Saraswat Bank education loan interest rates range from 9 to 10% per annum.
  • The loans have a repayment period of up to 15 years, including a moratorium period covering the course duration plus an additional year.
  • The bank charges a processing fee is 0.25% of the sanctioned amount and the maximum processing fee is INR 25,000.
  • Collateral is not required for loans up to INR 5 lakhs but is necessary for higher amounts.
  • The margin money requirement is 5% of the sanctioned loan amount for loans up to INR 5 lakhs (maximum INR 25,000) and 2.5% for loans above INR 5 lakhs (maximum INR 25,000).

Difference between HDFC Bank and Saraswat Bank Education Loan

HDFC Bank and Saraswat Bank offer education loans with distinct features. HDFC Bank provides need-based financing with a maximum of INR 45 lakhs without collateral and an interest rate starting at 9.50% per annum. On the other hand, Saraswat Bank offers loans up to INR 1.5 crores for studying abroad, with interest rates between 9-10% per annum and a 15-year repayment period. Check some of the major differences between HDFC Bank and Saraswat Bank Education Loan:

ParametersHDFC BankSaraswat Bank
Type of BankPrivate Sector BankScheduled Urban Cooperative Bank
Loan AmountNeed-Based FinancingUp to INR 1.5 crore
Interest RateStarting from 9.50%9-10%
Repayment PeriodUp to 14 yearsUp to 15 years
Application ProcessOnlineOnline
Processing Fee1% of the total loan amount or INR 1000 (whichever is higher)0.25% of the loan amount (maximum INR 2500)
Collateral RequirementsRequired for loan amount above INR 45 lakhRequired for loan amount above INR 5 lakh

Also Read: Want funds for education in your account? Check here all about HDFC Bank Personal Loan for Education

These were some of the major differences between HDFC Bank and Saraswat Bank education loans. Compare all the terms and conditions before finalising the bank for an education loan. Check some of the common FAQs on HDFC Education Loan Vs Saraswat Bank Education Loan.

FAQs

What are the interest rates for education loans from HDFC Bank and Saraswat Bank?

HDFC Bank offers education loans with interest rates starting from 9.50% per annum. Saraswat Bank offers education loans with interest rates ranging from 9% to 10% per annum.

What is the maximum loan amount offered by HDFC Bank and Saraswat Bank for studying abroad?

HDFC Bank provides need-based financing and easily offers loans up to INR 1.5 crore, with a maximum of INR 45 lakhs available without collateral. Saraswat Bank also offers education loans up to INR 1.5 crore for studying abroad.

What are the repayment periods for education loans from HDFC Bank and Saraswat Bank?

HDFC Bank offers a repayment period of up to 14 years, including the moratorium period. Saraswat Bank offers a repayment period of up to 15 years, including a moratorium period that covers the course duration plus an additional year.

Are there any processing fees associated with education loans from HDFC Bank and Saraswat Bank?

Yes, there are processing fees for both banks. HDFC Bank charges a processing fee of 1% of the total loan amount or INR 1,000, whichever is higher. Saraswat Bank charges a processing fee of 0.25% of the sanctioned amount, with a maximum of INR 25,000.

What are the collateral requirements for education loans from HDFC Bank and Saraswat Bank?

HDFC Bank requires collateral for loan amounts above INR 45 lakhs. Saraswat Bank requires collateral for loan amounts above INR 5 lakhs. For loans up to INR 5 lakhs, no collateral is required.

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 Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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