An education loan is a financial aid that individuals secure to pursue higher education, whether in India or abroad. Once the student completes their studies, the repayment phase commences, with a grace period of six months provided for the individual to secure employment. The borrower has the option to choose when to start repaying the loan, either during the moratorium period or after its conclusion.
The moratorium period extends for the duration of the individual’s education, plus an additional six months or a year to facilitate job hunting. During this period, borrowers are not obligated to make repayments. The interest on the loan begins accruing from the time the funds are disbursed, resulting in a substantial amount owed by the time of graduation. Alternatively, parents or guardians can opt to commence repaying the loan during the moratorium period, where interest is calculated on a simple basis. This approach significantly reduces the amount owed by the borrower upon graduation.
HDFC Education Loan for Abroad
HDFC provides a range of education loans tailored for Indian students seeking admission to both domestic and international colleges. The HDFC Education Loan stands out for its commitment to ensuring transparency throughout the application process, aiming to eliminate doubts and concerns related to security. With a track record as a market leader for over two decades, HDFC has garnered a valuable customer base and earned a reputation for maintaining high standards. The education loans offered by HDFC come with the advantage of swift disbursement, simplified documentation processes, and the provision of higher loan amounts. Competitive rates and charges further contribute to the attractiveness of these loans.
Students availing HDFC Education Loan for abroad studies can expect comprehensive coverage of major expenses incurred during the entire duration of their courses. This holistic approach aims to support students in meeting various financial requirements associated with their education.
Key Features and Benefits of HDFC Education Loan
HDFC Bank’s Education Loan for Indian Education thus provides a comprehensive financial solution with tailored features to support students in their pursuit of higher education.
- No Collateral Requirement: Loans up to Rs. 7.5 lakhs do not necessitate collateral submission. Amounts exceeding this limit, however, require collateral security, which can include residential properties, HDFC Bank Fixed Deposits, LIC, or other valid documents.
- Flexible Repayment Tenures: Borrowers availing loans up to Rs. 7.5 lakhs can extend their repayment periods up to 10 years. For amounts exceeding this limit, the tenure can be extended up to 15 years.
- Processing Fees: Applicants are required to pay a processing fee of at least 1% of the total loan amount.
- Margin Requirement: No margin amount is needed for loans up to INR 4 lakh. For loans exceeding this amount, a margin of 5% is required.
- Prepayment Charges: If the education loan is closed before the end of the moratorium period, a prepayment charge of up to 4% of the outstanding amount is applicable.
- Direct Disbursement to Institutions: Loans taken for higher studies in India are directly disbursed to the respective institutions based on the provided fee structure.
- Life Insurance Coverage: The loan includes additional coverage for life insurance, offering protection for students during the loan period.
HDFC Bank offers an Education Loan specifically tailored for Indian education, targeting students aspiring to pursue higher studies in institutions recognized by UGC, AIBMS, ICMR, and AICTE across various disciplines. The HDFC Education Loan comes with numerous benefits, efficient loan processing, and a simplified documentation process. Each loan is customized to meet the specific requirements of a diverse range of academic programs and institutions.
HDFC Education Loan for Abroad Studies
HDFC Bank extends its Education Loan specifically designed for individuals pursuing studies abroad. This loan caters to various expenses associated with foreign education, covering hostel fees, book fees, tuition fees, as well as travel expenses. Here are the key benefits of the HDFC Education Loan for Foreign Education:
- Comprehensive Coverage: The loan covers a range of expenses, including hostel fees, book fees, tuition fees, and travel expenses associated with studying abroad.
- Processing Fees: Applicants are required to pay a processing fee of 1.5% of the total loan amount.
- High Financing: The loan supports up to 100% of the cost of education and also approves loan amounts exceeding Rs 75 lakhs.
- Prepayment Charges: If the education loan is pre-closed within 12 months from the agreement date, applicants need to pay 4% of the principal amount as prepayment charges.
- Direct Disbursement: Tuition fees and hostel fees are disbursed directly to the institutions where students have been admitted, ensuring a streamlined financial process.
- Structured Repayment: Education loans for studies abroad are repaid through monthly installments, providing a systematic and manageable repayment plan.
HDFC Bank’s Education Loan for Foreign Education thus offers a comprehensive financial solution, accommodating various expenses associated with studying abroad and providing flexibility in loan amounts and repayment terms.
How to Apply for an HDFC Education Loan for Abroad Studies?
To apply for an HDFC Credila Education Loan, follow the steps mentioned. By following these steps, you can smoothly apply for an HDFC Education Loan for abroad studies, ensuring a hassle-free process from eligibility check to fund disbursement.
Step 1 – Check Loan Eligibility: Start by checking your loan eligibility on the HDFC Credila website.
Step 2 – Fill out the Application Form: Complete the HDFC Credila education loan application form with accurate and valid details.
Step 3 – Online Document Submission: Utilize the online upload facility on the GyanDhan portal to submit the required documents. This can be done from the comfort of your home.
Step 4 – Document Review: Your submitted documents and application will be reviewed by the HDFC Credila team.
Step 5 – Loan Approval: If you meet all the HDFC Credila education loan requirements, your loan will be approved.
Step 6 – Sign the Agreement: Once approved, you will need to sign the loan agreement.
Step 7 – Money Transfer: The approved loan amount will be transferred to your account electronically.
HDFC Credila Education Loan distinguishes itself by providing a personalized and convenient approach to financing education. Unlike traditional banks that offer uniform interest rates and loan amounts for students in the same category, HDFC Credila tailors its education loans to individual needs.