HDFC Education Loan Rate of Interest
HDFC Bank Education Loan is extended to students aspiring for studies in premier institute in India
- Flexible loan terms
- Hassle-free documentation process
- Attractive Rate of Interests
- Range of over 950 courses
The rate of interest charged by the bank is based on base rate or MCLR fixed by the bank under guidelines of RBI.
- The rate of interest charged for studies in India ranges from 9% to 14% per annum for all amounts.
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
Looking for admission for India and Abroad?
HDFC Education Loan Eligibility
- Indian Citizen. A student must be a resident of India or be in possession of Indian passport
- Above 18 years of age. An applicant must be above the age of 18 years and hence, should have qualified 10+2
- Graduation/ Post-Graduation courses. You must have secured admission to a graduate or post graduate course in a recognized institute
- Co-Signer. A co-signer is a must for full-time programmers. Also, co-signer must be an immediate family member
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | 12.10%+ floating rate(depends on the risks points of the applicant) | Up to INR 7.50 Lacs: 10.55% Above INR 7.50 Lacs: 10.80% | up to INR 7.5 Lacs: MCLR + 2.00% above INR 7.5 Lacs: 2.60% | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | |
| Max Loan with Collateral | For India: 10 Lacs For Abroad: 100% finance | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Max loan without collateral | For India: 10 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs | For India: 10 Lacs For Abroad: 20 Lacs and beyond based requirement | |
| Processing Fee | 1% of loan amount | Up to INR 4 Lacs: Nil Above INR 4 Lacs: INR 5000 | Nil | Nil | |
| Repayment Period | Loan amount upto INR 7.5 Lacs: 10 years Loan amount above INR 7.5 Lacs: 15 years | 15 years | 15 years | 7 years | |
| Loan for top institutions | No | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | |
| Margin | For India: up to INR 4 Lacs: Nil Above INR 4 Lacs: 5% | For loan above INR 4 Lacs In India: 5% In abroad: 15% | Up to INR 4 Lacs - NIL Above INR 4 Lacs - 5% | Upto loan 4 Lacs: No margin Above 4 Lacs: for India: 5% for Abroad: 15% | |
| Age Limit | 18 years | no age limit | No age limit | No | |
| Loan Security | Upto 4 lacs- No security required From INR 4 Lacs to 7.50 Lacs: collateral security in form of third party guarantee Above INR 7.50 Lacs: Tangible collateral security in form of residential property, HDFC fixed deposit, LIC, or any other policy. | Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank. | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | |
| Eligibility concession for SC/ST | No | No | 50% for SC/ST, and;60% for General category. | No | |
| Processing Time | 7 days | 20 days | 15 days | 14 Days | |
| Prepayment charges | Pre-closed within moratorium period: 4% of principal amount + taxes Foreclosed after moratorium period: No prepayment penalty | Nil | Nil | Nil | |
| Penal charges | @ 2% per month on the overdue installment/s | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period | Nil | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | No | Yes | yes | yes | |
| Travel expeneses | yes (one way travel | yes | yes | yes | |
| Bank transfter allowance | No such clause mentioned | available | available | No such clause mentioned | |
| Top up loan availability | Unavailable | yes | available | unavailable | |
| Interest Subsidy Schemes | CSIS | Padho Pardesh CSIS Skill Loan Scheme | Padho Pardesh CSIS Skill Loan Scheme | CSIS | |
| Tax benifit | Yes | yes | yes | yes | |
| Concession/benefits | Doorstep service Flexible loan terms Upto 100% finance Tax benefits Hassle-free documentation process | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents |
How to apply for HDFC Education Loan ?
HDFC Education loan application form can be available online or offline at Bank branches.
Visit the official website and click on HDFC Education Loan
Click Apply Online through Vidyalaxmi Portal
Fill up the form with all the necessary details
Upload the signature, photograph and other documents required
Submit the Form and take print out
After that visit the nearby HDFC Bank for the further proceedings
For offline procedure, student can visit the bank and ask for application form for education loan. The bank representative will then be able to guide you with all necessary details and information about margin money, interest rates, and eligibility criteria about the suitable loan for you.
HDFC Education Loan Details
Above INR 4 lacs: 5%
From INR 4 Lacs to 7.50 Lacs: collateral security in form of third party guarantee
Above INR 7.50 Lacs: Tangible collateral security in form of residential property, HDFC fixed deposit, LIC, or any other policy.
Up to INR 7.5 Lacs: 10 years
Above INR 7.5 Lacs: 15 years
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Expenses covered under HDFC Student Loan Scheme
- Tuition fee
- Examination Fee
- Library/ Laboratory fee
- Hostel Fee
- Cost of Books, equipment, instrument or uniforms
- Miscellaneous expenses- study tours, project work, thesis, etc.
- Other travelling cost
- Caution deposits and building funds
Courses Covered Under HDFC Student Loan Scheme
In India
Professional courses in Management in all verticals
Graduation courses in Engineering in all branches and streams for recognised institutions
Graduation and Post-graduation courses in medicine, dentistry, pharmacy, physiotherapy
Architectural courses
Hotel and Hospitality management and administration
Agricultural courses
Degree courses in pure science disciplines like Maths, Botany, Zoology, and Chemistry
Degree/Diploma courses in advanced sciences
Post graduate courses in computer applications like MCA / MCM
Education Loan Documents Required ?
Properly filled Application Form with all necessary details
Copies of Age Proof, Identity Proof, and Residence Proof
2 Attested Passport size photograph
Mark sheets of all qualifying courses
Income Proof- 6 months bank statement, Form 16, and Audited Balance Sheet of last 2 years
Bank account statement of the applicant.
Interest Subsidy Schemes
Central Scheme for Interest Subsidy
HRD Ministry has introduced interest subsidy scheme for students seeking admissions to approved technical and professional courses from recognized institutes after the completion of Class 12 from economically weaker sections with a gross income of up to INR 4.5 Lacs.
Frequently Asked Questions
What schemes does HDFC Bank considers for its education loans?
+ -There are multiple other schemes offered by HDFC Bank apart from the basic education loans. These are:
- CSIS Scheme
- Padho Pardesh
- Model Loan Scheme for Vocational Education and Training
In whose name is the loan granted?
+ -The loan is granted in the name of the student
Is the loan contract executed only in student name?
+ -No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.
What is the age limit for availing loan in HDFC Bank?
+ -There is no age restriction for the applicant applying for education loan from HDFC Bank. He/ she should only meet the other stated eligibility criteria.
Are minors eligible to apply for HDFC Bank Education Loan?
+ -Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
What does margin on any loan mean?
+ -Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Should the student's margin be paid upfront in the starting?
+ -Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Where can I avail HDFC Bank Education Loan?
+ -You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.
Is there any provision to apply for loan online?
+ -Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Can I view my loan statement online if I am an existing education loan borrower?
+ -Yes, by creating a login on HDFC Bank web portal, you can view all details related to education loan online.
Is there any minimum aggregate marks to meet the eligibility criteria to avail HDFC Bank education loan?
+ -Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students
What is the discount/ rebate offered by HDFC Bank?
+ -- 0.50% concession is given to girl students
- Eligibility criteria and margin on education loan is relaxed for SC/ST students
What all is included in tangible collateral security?
+ -Mostly HDFC Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of HDFC Bank. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Can I place my family property as collateral?
+ -Yes, but it will need consent of all family members involved.
Is scholarship or assistantship included in the margin?
+ -Yes any scholarship or assistantship will be a part of margin charged on education loan.
What is Moratorium Period?
+ -Course Period plus one year, or six months after getting a job
What is tenure of an education loan?
+ -Tenure of education loan provided by HDFC Bank is maximum 15 years
What does MCLR stands for?
+ -MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
What all expenses are covered under this course?
+ -Expenses covered by HDFC Bank education loan are:
- Tuition/ college/ hostel fee
- Examination/ lab/ library fee
- Books/ uniform/ instruments
- Caution deposit
- Passage money for studies abroad, etc.
I have taken admission through management quota. Am I eligible?
+ -This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.
What do you mean by reputed or recognized institutes?
+ -Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Are there any special benefits if I have secured admission to one of the top premier institutes?
+ -HDFC Bank provides no concession to students who have secured admission in any premier institutes.
What is the processing fee or prepayment charges?
+ -The education loan offered by HDFC Bank have:
Prepayment Charges: 4% on outstanding amount id loan is foreclosed/ part prepaid any time before the expiry of moratorium period.
Processing Fee: 1% processing fee which is refundable at the time of acquisition of loan
Will cost of my computer be covered under the loan sanctioned?
+ -Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Why is Pan Card necessary?
+ -Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
- Easy to assess Income
- Easy to trace borrowers
Are diploma or certificate courses considered under HDFC Bank education Loan (both for India and Abroad)?
+ -Diploma courses are eligible under HDFC Bank Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.
Is a co-borrower necessary for loan?
+ -Yes, it is mandatory to have a co-borrower to avail loan from HDFC Bank.
Who can be my co-borrower?
+ -Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
What all documents are required from the co-borrower?
+ -Documents required from the co-borrower are:
- Attested copies of age proof, residence proof and birth date.
- Self-attested passport size photograph
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any).
How many guarantors do I need to borrow loan from HDFC Bank?
+ -You need at least 2 guarantors to avail loan from HDFC Bank.
What is the KYC requirement in education loan?
+ -KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
What are maximum term for repayment?
+ -- Loan amount upto INR 7.5 Lacs: 10 years
- Loan amount above INR 7.5 Lacs: 15 years
How can I repay the loan?
+ -You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
What is EMI? How are they calculated?
+ -EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
- EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
- Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
- Or simply you can use the EMI calculator provision available on HDFC Bank’s official website.
What are the charges for late EMI payment?
+ -24% per annum on the outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.
Is the loan disbursed in name of individual applicant or to the institute/ university directly?
+ -The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
If I am unable to complete my course in given tenure, will my repayment term be extended?
+ -It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.
What is method of application of interest on education loan?
+ -The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
If I am joining the course soon after current course, can I get an extension?
+ -Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher
What is interest rate of education loan?
+ -The interest rate is different for different loan offered. Refer the bank for the same.
What is interest subsidy on education loan?
+ -HDFC Bank offers
- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
- Model Loan Scheme for Vocational Education and Training- for students who wish to pursue vocational courses and enhance their career prospects.
- Padho Pardesh scheme for students who wish to pursue studies abroad
What documents do I need to submit to avail interest subsidy scheme?
+ -The documents that need to be submitted are:
- Income certificate issued by authorised authorities
- Bonafide student certificate
- Letter of undertaking or declaration signed by borrower/ co-borrower
What is employment verification in an education loan?
+ -The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Are there any tax benefits in education loans?
+ -Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).
Is it necessary to have bank account with the bank while availing loan from that particular bank?
+ -It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Why do banks require insurance policy as security?
+ -The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Are there any additional benefits on availing loan from HDFC Bank?
+ -There is no additional benefit mentioned on the official website while applying for HDFC Bank Education Loan
What is credit score? Is it important for education loan?
+ -Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
If a student have any query, where or whom to contact?
+ -student can reach out to the nearest branch in case of any query.
Customer Care Number: +91 22 6652 1000, 1800 209 3636
Customer Care Id: loansupport@hdfcbank.com
Local rates apply on every call
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