Education Loan Interest Rates 2020555 views
- HDFC Education Loan for higher studies in India & Abroad
- Interest rates on education loan start from 9.45%
To pursue higher education in the best universities or institutions, you need funds for admission. And after clearing the entrance test or merit-based selection process, you can apply for an education loan at HDFC Bank. You can find out the instant solution to the fund you need for education at this private banking leader. To get the education loan, you need to be an eligible applicant. And the one who meets the criteria can borrow the desired amount from HDFC Bank to get the education. With the attractive rate of interest in HDFC Education Loan, you can pay the borrowed amount over a maximum of 15 years.
Students can also get an education in a foreign university with HDFC Bank support. Because if education is limitless why your funds can be. To borrow the loan which you require to get the admission, you just need to visit HDFC Bank. Know about the HDFC Education Loan schemes in detail, and how their features can help students achieve their dreams.
Table of Contents
- 1 HDFC Education Loan For Education in India
- 2 HDFC Education Loan for Foreign Education
- 3 Central Government Interest Subsidy Scheme by HDFC Bank
HDFC Education Loan For Education in India
For the students who have made their plans already to secure their admission in the best Indian Universities or colleges, HDFC Bank gives them 100% financial support. You can borrow up to INR 7.5 lakh from the bank against zero collateral security. Using the loan, you can pay for your semester fees, book expenses, and personal computer purchase if it is required for educational purposes. HDFC Bank charges an interest rate of 9.45%-12.01% per annum. And the rate of interest is based on the parent income who is the co-applicant of HDFC Education Loan. You can add your spouse, parent-in-law or guardian as co-applicants of the loan. And there is a higher chance of getting a lower interest rate on the borrowed amount if you have secured admission in a renowned university based on your entrance results.
You can also borrow money for part-time educational courses from HDFC Bank where you can borrow money up to INR 75 lakh only at a fixed interest rate of 12.75%. The bank offers a lower payment duration for the part-time course. You can still get the 1-year moratorium period on your education loan. Payment of the loan is made in equated monthly installments.. Below is the table that shows the detailed charges and interest rate of the HDFC Bank Indian Education Loan.
|Interest Rate||9.45%-13.33% per annum|
|Processing fee||1% of the loan amount|
|Prepayment/Foreclosure charge||4% of outstanding if paid during the moratorium period|
Nil if paid after the moratorium period
|Late Payment fee||24% per annum|
2% on each due EMI
Security for loan above INR 7.5 lakh.
- Tangible collaterals like residential property, car, etc.
- Fixed deposit in HDFC Bank
- The value of FD must be above or equal to the HDFC Education Loan amount
Life Insurance: You can get the HDFC Life Insurance with your HDFC Education Loan for ensuring security to the life of the student and co-borrowers too. The insurance is the part of your education loan if you opt for the credit insurance from HDFC Bank while applying for the loan.
HDFC Education Loan for Foreign Education
Your dream of going to college or the best foreign university is coming true with foreign education loans from HDFC Bank. To borrow money with no upper limit of the collateral you can borrow the entire education expenses. And, if the borrower needs an unsecured loan, HDFC Bank finances up to INR 35 lakh for the customers for their educational purposes. The interest rate charged to the borrowed amount is the same as the Indian education loan. It means you can get a suitable EMI for your borrowed amount. You get an option of 650 courses across 36 countries with HDFC education loan, and the amount is disbursed before the admission. So, you don’t need to wait for the loan approval after the admission anymore with HDFC Bank services. Below is the list of expenses that HDFC Bank covers using the loan.
- Course exam, library, lab and semester fees
- Refundable deposits required by the university for the admission
- Purchase of books, equipment, instrument, uniforms (if mentioned) or computers for the essential to complete the course.
- Travel expenses for abroad studies
- Insurance cover
- Course-related expenses like study tours, project work, thesis, etc.
Table showing the foreign education loan details of HDFC Bank.
|Interest Rate||9.45%-14.01% per annum|
|Processing fee||1.5% of the loan amount|
|Late Payment||2% on the due EMI|
Central Government Interest Subsidy Scheme by HDFC Bank
Students from the economically weaker sections of the society can benefit from the subsidy scheme on the HDFC education loan. The bank doesn’t charge any interest rate from the borrower during the moratorium period. As a result, the loan becomes affordable. That means you will be paying only the borrowed amount to the bank with a less interest rate. Your loan interest rate is based on the repo linked lending rate of the bank or MCLR that is 8.15%.
The disbursement of loan interest subsidy to your bank account is credited on a yearly or quarterly basis, as per the Ministry of HRD, Govt. of India. Under the Indian Bank Association scheme for education, you can get a 1% of concession if the interest is serviced during the Moratorium period. To get the benefit of the subsidy scheme, you must meet the below mentioned criteria.
- The annual income of the family must not exceed INR 4.5 lakh
- Must pursue technical or professional courses after 10+2 in India
- Secure the admission based on merit selection or entrance tests
HDFC Education Loan Calculator
You can visit the official website of HDFC Bank and use the online tool-EMI calculator to generate your EMI instantly. To know how your education loan payment is going to be, the best way to find it out is via the HDFC EMI calculator. Just put your desired loan, interest and tenure to know the appropriate EMI. Suppose, you have borrowed a loan of INR 12 lakh from HDFC Bank to get admission in the desired university. And the bank charges an interest rate of 10.00% per annum. So your EMI would be INR 8,745 according to the EMI calculator. The tool works as per the formula of [P x R x (1+R)^N]/[(1+R)^N-1], where P is your loan, R is the interest rate and N is the duration of payment.
Save Tax on HDFC Education Loan
RBI allows the borrower to save tax on the education loan interest rate payable under the income tax act of 1961 80(E). The borrower who pays tax every year regularly has this advantage of tax saving. The interest paid on the education loan can be claimed as tax deduction under the said section. The deduction can be claimed for as long as 8 years. For example, if you have paid INR 50,000 interest towards your HDFC Education Loan in the last financial year, you can claim this total amount and save on your tax payment.
Documents for HDFC Education Loan
The borrower needs to submit a list of documents to the bank that prove his/her and student identity and income details. And if you mortgage your property or fixed deposit for the security of the loan, you are required to submit the deposit receipts and property documents. Look at the list of KYC and income proof required for the documentation process. The income proof is necessary to submit for the borrower only and the student doesn’t need to provide any income proof.
- Aadhar card
- PAN card
- Driving Licence
- 10+2 certificate
- Salary slip
- Salary certificate
- ITR report
- Form 16
Apply for HDFC Education Loan
You can apply for the loan by going to the nearest HDFC Bank branch or do it online. Existing customers can use their mobile to apply for the loan. Just download the HDFC Bank Mobile app and log in to your account via customer id. Once you log in, you can apply for the loan and check for the pre-approved offers as well. Fill up the loan application form and submit the mentioned documents. And when your loan is confirmed by the bank, you are required to pay the processing fee as per the bank requirement.
After the payment of the processing fee, your loan would take a few hours to get disbursed. The loan is disbursed directly to the Institution or college once you secure your admission.
Pay Loan in EMI
You can pay for the HDFC Education Loan using the following methods.
- Electronic Clearing Service (ECS): To pay your EMI automatically without getting stressed about going to the bank branch and submitting cheque, you can use ECS. The automated clearing service ensures the EMI is auto-debited from your bank account. Just visit your bank website and request for an ECS service. You can fill up an ECS form and submit it to HDFC Bank with other documents.
- Standing Instruction: You can activate the automatic payment service from your HDFC Bank using the Standing Instruction service. The user just needs to visit the website and fill up the form for standing instruction with which the EMI is debited from your HDFC savings or current account.
- Cheque: The last alternative for your payment is a cheque, you can submit the cheque to the HDFC Bank branch after the loan approval so that the EMI starts debiting from your account as per the schedule of payment.
HDFC Bank levies swap charges of INR 400 to 500 with an applicable GST if you swap cheque or change the payment service later during the tenure.
Get yourself educated with no difficulty with HDFC Education Loan and build a successful career.