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HDFC Bank Education Loan- Student Loan in India

HDFC Bank Education Loan Scheme

STUDENT LOANS FOR INDIAN EDUCATION

Features and Benefits of Student Loans for education In India

Amount limits:  Education Loan upto Rs. 10 lakh and unsecured lending upto Rs. 7.5 lakh. No collateral will be required for loans upto Rs. 7.5 lakh

Wider collateral options: Are you securing a loan of a higher amount than Rs. 7.5 lakh? HDFC offers a wide range of bank approved collateral securities like Residential Property, HDFC Bank Fixed Deposit, LIC, NSC or a KVP policy.

Loan Tenure: The maximum repayment tenure is upto 15 years post moratorium period.

Q.2 What are the eligibility criteria for securing Student Loan for Indian Education?

  • You need to be a Indian resident
  • You should be aged between 16 - 35 years.
  • If you are taking a loan of more than Rs. 7.5 Lakh, a collateral security will be required.
  • Co-applicant: A co-applicant is mandatory for all full time programs. Co-applicant could be Parent/ Guardian or Spouse (if married) / Parent-in-law (if married).

Co applicant:

A co-applicant is required for all full time courses. Here are a few points to be noted about co-applicants:

Primary Co-Applicants: 

Parents, Spouse, Siblings

Secondary Co-Applicants: 

Father-In Law, Mother-In-Law, Brother-In-Law, Paternal / Maternal Uncle / Aunt

Here is an exhaustive list of the documents that you will need for the student loan:

Category Applicant

Student

  • Academic Institute Admission Letter with Fee break-up
  • SSC,HSC,Graduation Marksheets
  • KYC (Know Your Customer)          
  • Age Proof
  • Signature Proof
  • Identity Proof
  • Residence Proof
  • Income Documents           

Salaried

  • Latest 2 Salary Slips carrying date of joining details
  • Latest 6 Months Bank Statement of the Salary Account.

Self Employed

  • Last 2 Year ITR with Computation of Income
  • Last 2 Years Audited Balance Sheet
  • Last 6 Months Bank Statement
  • Proof of Turnover (Latest Sales / Service Tax Return)

Self Employed - Professional

  • Last 2 Year ITR with Computation of Income
  • Last 2 Years Audited Balance Sheet / P& L
  • Last 6 Months Bank Statement

Proof of Qualification

  • Others Completed Application Form
  • Latest Photograph (Signed Across)
  • If appointment letter does not mention Joining Details, then applicant has to submit appointment letter of the current employer.
  • Proof of continuity from previous employer is required if co-applicant is in current job for less than 1 year at the time of loan application
  • Documentation (Post Sanction)

Q.3 Is there any documentation required post the sanction of the loan?

Category Applicant (Student)

Loan Agreement Completed Loan Agreement to be signed by Applicant and Co-applicant *

Repayment Instructions   

PDCs / ECS or SI Mandate

3 Security PDCs in case of ECS and SI mode of repayment

* Stamp duty to be paid by the customer as per the relevant state laws.

Here are the documents you need to submit for subsequent disbursements:

  • Subsequent Disbursement Request Letter From Applicant Or Co-Applicant
  • University Fee Demand Letter
  • Applicant's Academic Progress Report (Previous Semester)
  • Revised Repayment Instructions - PDCs / ECS / SI plus 3 security PDCs in case of ECS and SI mode of repayment.

Q. 4 What are the fees and charges applicable for Student Loan for Indian Education?

Here is an exhaustive list of all the fees and charges to be paid for the education loan:

Description of Charges                                  Education Loan

Loan Processing Charges                              Upto a maximum 1% of the loan amount

Pre-payment charges                                     Upto 4% of the Principal Outstanding
(after 6 months of repayment)        

No Due Certificate /                                         Nil
No Objection Certificate (NOC)       

Duplicate of No Dues Certificate/NOC    Rs. 250/-

Solvency Certificate                                         Not applicable

Charges for late payment of EMI              @ 24 % p.a. on amount outstanding from date of default

Credit assessment charges                          Not applicable

Non standard repayment charges             Not applicable

Cheque swapping charges                           Upto Rs. 500/- per event

Loan Re-Booking / Re-Scheduling             Upto Rs. 1000/-

EMI Return Charges*                             Rs.550/- per instance

Charges    Bounce Cheque Charges          Upto Rs. 450/- per Bouncing

Legal / incidental charges                             At actual

Stamp Duty & other statutory charges   As per applicable laws of the state

Duplicate Repayment Schedule                  Rs. 200/-
charges

HDFC STUDENT LOANS FOR FOREIGN EDUCATION

Features

Get a loan for upto Rs. 20 lakh for your foreign education*

No collateral required for your loan if the amount is less than Rs. 7.5 lakh

Study from a wide range of approved courses and institutions of your choice

* From Bank's approved list of Institutes.

Benefits

Be worry-free about repaying the principle amount while you study! Repayments will start only after 1 year of course completion or 6 months after you get a job (whichever is earlier)

Avail for a tax rebate on the interest you pay on an education loan under Section 80-E of the Income Tax Act 1961

Ques 1. Do you want to know our Student Loan for Foreign Education in detail?

Focus on pursuing the course of your choice and securing a great education. Leave the hassles of documentation and finances of your student loan for foreign education to us. Here are a few features of the loan:

Amount limits: Get student loans for foreign education upto Rs. 20 lakh. No collateral or third party guarantee will be required for loans up to Rs. 7.5 lakh.

Wider collateral options: We will require a collateral security if you are looking for a loan for your foreign education for more than Rs. 7.5 lakh. But don't be worried because you can choose from a wide range of options for your collateral security like Residential Property, HDFC Bank Fixed Deposit, LIC, NSC or KVP.

Pick your course: We have a list of approved institutions and courses like MBA, Engineering, Medicine, Architecture, Pure Sciences, IT and much more.

Loan Tenure: Free yourself of the hassle of immediate repayment. Our loans are available upto a period of 7 years including moratorium period. A repayment moratorium (also called a repayment holiday) is the coursework period + 1 year or 6 months after the student gets a job/starts earning - whichever is earlier. You can avail flexible repayment plans.

Tax Rebate: Did you know that you are eligible for a tax rebate for the interest you pay on an education loan under Section 80-E of the Income Tax Act 1961*? See the Income Tax Circular for more details here. Email loansupport@hdfcbank.com to receive interest certificate for FY 09-10.

If this wasn't enough for you, check out some more special privileges that you will get as a HDFC customer for a Student Loan For Foreign Education:

1. We will provide services at your doorstep.

2.Loans will be directly disbursed to the educational institution as per the fee structure.

3.Apart from all these benefits, you will also become eligible for some of our great exclusive offers on other Banking Products and Services like a NRE Savings account, Special rates on Telegraphic Transfers and Demand Drafts, Student Travel Card and more.

Thinking about insurance?

Put your worries to rest because you can now choose to go for Insurance Protection from HDFC ERGO General Insurance Company Ltd. With focus laid on providing the 'Right Insurance Solution' for everyone, you will find an option that suits you.

Ques 2.What are the eligibility criteria for securing a Student Loan for Foreign Education?

You need to be a Indian resident

You should be aged between 16 - 35 years.

If you are taking a loan of more than Rs. 7.5 lakh, a collateral security will be required

Co applicant: A co-applicant is required for all full time courses. Here are a few points to be noted about co-applicants:

Primary Co-Applicants: Parents, Spouse, Siblings

Secondary Co-Applicants: Father-In Law, Mother-In-Law, Brother-In-Law, Paternal / Maternal Uncle / Aunt

Check out more details on eligibility and courses on offer in our FAQ section.

Here is an exhaustive list of the documents that you will need for the student loan:

Category          Applicant (Student)

Academic         Institute Admission Letter with Fee break-up
                          SSC, HSC, Graduation Mark sheets

KYC (Know Your Customer)     

Age Proof

Signature Proof

Identity Proof

Residence Proof

Income Documents     

If Salaried

Latest 2 Salary Slips carrying date of joining details

Latest 6 Months Bank Statement of the Salary Account.

If Self Employed

Last 2 Year ITR with Computation of Income

Last 2 Years Audited Balance Sheet

Last 6 Months Bank Statement

Proof of Turnover (Latest Sales / Service Tax Return)

If Self Employed - Professional

Last 2 Year ITR with Computation of Income

Last 2 Years Audited Balance Sheet / P& L

Last 6 Months Bank Statement

Proof of Qualification

Others Completed Application Form

Latest Photograph (Signed Across)

If appointment letter does not mention Joining Details, then applicant has to submit appointment letter of the current employer.

Proof of continuity from previous employer is required if co-applicant is in current job for less than 1 year at the time of loan application

Documentation (Post Sanction)

Is there any documentation required post the sanction of the loan?

Category                          Applicant (Student)

Loan Agreement            Completed Loan Agreement to be signed by Applicant and Co-applicant*

Repayment Instructions           

PDCs / ECS or SI Mandate

3 Security PDCs in case of ECS and SI mode of repayment

* Stamp duty to be paid by the customer as per the relevant state laws.

Here are the documents you need to submit for subsequent disbursements:

Subsequent Disbursement Request Letter from Applicant or Co-Applicant

University Fee Demand Letter

Applicant's Academic Progress Report (Previous Semester)

Revised Repayment Instructions - PDCs / ECS / SI plus 3 security PDCs in case of ECS and SI mode of repayment.

Please e-mail us at eduloan@hdfcbank.com

Ques 3. What are the fees and charges applicable to Student Loans for Foreign Education? 

Here is an exhaustive list of all the fees and charges to be paid for the education loan:

Description of Charges                                                                  Education Loan

Loan Processing Charges                                              Upto a maximum 1.5% of the loan amount

Pre-payment charges                                                                    Nil

No Due Certificate / No Objection Certificate (NOC)          Nil

Duplicate of No Dues Certificate/NOC                                  Nil

Solvency Certificate                                                                  Not applicable

Charges for late payment of EMI                                         @ 2 % per month of instalment ( MI/PMII)+taxes

Credit assessment charges                                                    Not applicable

Non standard repayment charges                                        Not applicable

Cheque swapping charges                                                     Upto Rs. 500/- per swap

Loan Re-Booking / Re-Scheduling Charges                         Upto Rs. 1000/-

Bounce Cheque Charges                                                       Upto Rs. 400/- per Bouncing

Legal / incidental charges                                                     At actual

Stamp Duty & other statutory charges                               As per applicable laws of the state

Duplicate Repayment Schedule charges                             Rs. 500/-

Loan cancellation charges                                             1% of the unveiled sanctioned loan amount + taxes

Manual Collection Charges                                          Rs. 200/- per visit plus applicable any taxes thereon

Charges for Updating & Handling Loan Account  Rs. 1,500/- plus applicable any taxes thereon