Pursuing higher education abroad is a dream for many Indian students. However, the financial burden of tuition fees, living expenses, and other costs can be overwhelming. To bridge this gap, many students and their families explore financial options like education loans and credit card loans. HDFC Bank, a leading private bank in India, offers credit card loans that can help students fulfil their aspirations. In this blog, we’ll explore HDFC credit card loans, repayment options, and how they cater specifically to Indian students planning to study abroad.
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What Is an HDFC Credit Card Loan?
An HDFC Credit Card Loan is a pre-approved, unsecured loan offered exclusively to HDFC credit card holders. It provides quick access to funds without the need for collateral. This facility allows cardholders to borrow a specific amount based on their credit limit or additional eligibility criteria. With flexible repayment tenures, competitive interest rates, and a hassle-free online application process, HDFC credit card loans are a convenient choice for managing short-term financial requirements, including studying abroad.
Also Read: Planning to open a bank account abroad? Check here all about the HSBC International Student Account
Benefits of HDFC Credit Card Loans for Students
Credit card loans can be considered the fastest loan option available as you can get the money in your account instantly against your credit card. This is the most important feature of an HDFC credit card loan as you can use the amount in emergencies. Check some major benefits of HDFC credit card loan below:
- You get instant loan disbursal, which is crucial for securing admission or paying upfront fees or any other expenses.
- The loan is unsecured, eliminating the need for guarantors or property pledges.
- HDFC provides flexible EMIs (Equated Monthly Installments) customised to your financial capacity.
- Based on your credit history and card type, you may receive better interest rates compared to other personal loans.
How to Apply for an HDFC Credit Card Loan?
You can apply for an HDFC credit card loan through online mode. The option of a loan against a credit card is available online when you log in to your net banking account. The bank will approve the loan based on the credit limit and other eligibility criteria. Check the detailed application process below:
- Log in to HDFC NetBanking or the mobile app and check your eligibility for the loan before proceeding with the application.
- Go the personal banking and select the ‘Loan on Credit Card’ option under the loan section.
- Fill out the credit card loan application form. Enter details like the loan amount and tenure (3-48 months).
- Once approved, the loan amount is credited directly to your bank account within minutes.
Also Read: Check here all the details and tips about SBI Education Loan Repayment
Repayment of HDFC Credit Card Loan
Student credit card loan repayment must be understood properly. Repaying the loan is a critical part of managing your finances while studying abroad. HDFC Bank offers multiple repayment options to make the process hassle-free. Timely repayments of the loan will help you to increase your CIBIL score or credit score. The bank offers a repayment period of 2-4 years for a loan against a credit card. Check some of the major modes of repayment below:
- EMI Deductions: Monthly EMIs are automatically deducted from your linked savings or salary account. You can do this by setting the SI (Standing Instruction).
- NetBanking: You can manually repay via NetBanking through the loan repayment section or payment apps like Cred, Paytm etc.
- Cash Payment: Visit the nearest HDFC branch to repay in cash, if required.
Note: The EMI on the loan against a credit card is added to the final bill amount every month. In case you are using the credit card continuously, you don’t need to pay separately for the loan as it will be paid automatically when you pay the monthly credit card bill.
Tips for Indian Students Repaying HDFC Credit Card Loans
It is very important to plan the repayment of the loan even before taking it. Unlike other usual education loan repayment time, there is no moratorium period offered for this kind of loan, the repayment starts from the very next month after taking the loan. Check some important tips for HDFC Credit Card Loan Repayment below:
- Create a repayment plan based on your expected part-time earnings abroad or family contributions.
- Keep track of the effective interest rate on the loan and consider prepaying if you have excess funds.
- Delayed payments can lead to penalties and negatively impact the cardholder’s credit score.
- If your income is in foreign currency, consider exchange rates when planning repayment.
For students aspiring to study abroad, managing finances is crucial. HDFC credit card loans provide a reliable and flexible solution to cover unexpected expenses or supplement education funding. However, ensure that you borrow responsibly and have a clear repayment strategy in place.
FAQs
An HDFC credit card loan is a pre-approved personal loan offered to HDFC credit card holders based on their credit limit or additional eligibility. It provides quick funds without requiring collateral, ideal for managing urgent expenses like education costs.
Yes, the loan can be used to cover expenses like tuition fees, visa costs, travel, or accommodation. However, it’s essential to verify the maximum loan amount against your requirements.
You can check your eligibility through HDFC NetBanking, the HDFC mobile app, or by contacting customer care. Eligibility is based on factors like credit score, repayment history, and your card’s credit limit.
The repayment tenure typically ranges from 3 to 48 months. You can choose the tenure that best suits your repayment capacity.
Repayment can be made via automatic EMI deductions, NetBanking, HDFC’s mobile app, standing instructions, or by visiting an HDFC branch.
HDFC may charge a prepayment penalty, depending on the loan type and tenure. Check the terms and conditions at the time of availing the loan.
Missing an EMI payment can result in late payment penalties, increased interest rates, and a negative impact on your credit score. It’s advisable to set up standing instructions to avoid delays.
Yes, in some cases, HDFC offers a loan over and above your existing credit limit, depending on your financial profile and repayment history.
Yes, you can repay your loan using foreign earnings. However, ensure that you account for currency exchange rates and transfer fees when scheduling payments.
An HDFC credit card loan is faster and more flexible, ideal for smaller or immediate financial needs. However, for larger funding requirements, an education loan may offer longer repayment tenures and lower interest rates. It’s best to evaluate both options based on your needs.
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.
