Education loans are a great leverage for candidates who need more funds to finance their studies abroad. A leading private lender of education loans HDFC is offering both secured and unsecured education loans for candidates aiming to study abroad. HDFC education loan interest rate for abroad varies depending on several factors like type of loan and loan amount. This comprehensive guide covers why HDFC should be your preferred choice, education loan interest rate HDFC, and what expenses are covered under HDFC education loan.
Education loans help candidates fulfill their dreams and get top-tier education from the world's top universities. HDFC is a private bank offering customized education loans for students aspiring to study abroad, with a deep understanding of their requirements. Here are the key benefits of getting an education loan from HDFC:
Affordable Interest Rates: HDFC ensures students don't face heavy financial burdens and hence offers competitive interest rates on education loans.
No Collateral Requirement for Loans Up to ₹45 Lakh: Students do not need to provide any collateral up to certain amounts on selected institutes, making it easier for young borrowers to secure funding.
Flexible Repayment Terms: HDFC offers flexible loan repayment options, including a moratorium period before the EMI payments begin.
Tax Benefits: Under Section 80E of the Income Tax Act, the interest paid on education loans is eligible for tax deductions, making it financially more attractive.
Quick Disbursement: Once the loan is approved, HDFC ensures timely disbursement of funds directly to the educational institution, ensuring students don't face any financial delays.
HDFC provides flexible and competitive interest rates for its education loan products. The interest rate is 12.5% across different loan amounts. Below is a detailed breakdown of interest rates based on loan amounts:
| Education Loan Amount (₹) | Rate of Interest (ROI) | Interest Amount (₹) |
|---|---|---|
| 2,00,000 | 12.5% | 25,000 |
| 4,00,000 | 12.5% | 50,000 |
| 6,00,000 | 12.5% | 75,000 |
| 10,00,000 | 12.5% | 1,25,000 |
| 15,00,000 | 12.5% | 1,87,500 |
| 20,00,000 | 12.5% | 2,50,000 |
HDFC education loan interest rate for abroad is comparatively low compared to many other financial institutions. Availability of an education loan from HDFC bank is a simple process, but a candidate may need to fulfill the following criteria in order to be eligible for the desired loan amount.
HDFC education loan covers a wide range of expenses right from your tuition fees to travel fares. It is important to verify with your lender about the expenses that are covered under your education loan, as many lenders don't cover accommodation and travel expenses.
Understanding the complete cost structure of your education loan is essential for financial planning. Below are the processing fees and additional charges associated with HDFC education loans:
| Service Type | Charges |
|---|---|
| CERSAI Statutory Charges | As decided by CERSAI |
| Late Payment Charges | 2% per month of the installment (MI/PMII) along with applicable taxes |
| Cheque / Direct Debit Charges | Up to ₹500 per swap along with additional taxes |
| Legal Charges (Stamp Duty) | Actual |
| Collection Charges | ₹200 per visit |
| Handling Charges for Loan | ₹1500 + taxes |
| Original Fees | 1.5% + tax on amount |
One of the key advantages of an HDFC Education Loan is the tax benefit available under Section 80E of the Income Tax Act. The interest paid on the loan is eligible for tax deductions, making it a more financially viable option for students.
Eligible Deductions: The entire interest paid on the education loan can be claimed as a deduction, which helps in reducing taxable income.
Deduction Period: You can claim the deduction for up to 8 years or until the loan is repaid, whichever is earlier. This deduction is available only on the interest component and not on the principal repayment.
To help you make an informed decision, here is a comprehensive comparison of HDFC education loan interest rates with other major banks and financial institutions in India:
| Bank Name | Loan Amount (Secured) | Loan Amount (Unsecured) | Interest Rate (Secured) | Interest Rate (Unsecured) | Loan Tenure (Secured) | Loan Tenure (Unsecured) |
|---|---|---|---|---|---|---|
| HDFC | Up to ₹20,00,000 | NA | 9.55% - 13.25% | 9.55% - 13.25% | Up to 14 years | Up to 14 years |
| ICICI Bank | Up to ₹3 Crore | Up to ₹1 Crore | 10.00% - 12.50% | 11.00% - 12.50% | Up to 10 years | Up to 10 years |
| BOB Bank | Up to ₹1.5 Crore | NA | 9.7% - 10.5% | NA | Up to 15 years | NA |
| IDFC Bank | Up to ₹1.5 Crore | Up to ₹62 Lakhs | 9.7% - 10.20% | 11.75% - 13.25% | Up to 15 Years | Up to 12 Years |
| AVANSE | ₹1 Crore | Up to ₹40 Lakhs | 10.5% - 11% | 12% - 13.25% | 10 years | 12 to 15 years |
| INCRED | NA | Up to ₹50 Lakhs | NA | 11.65% - 13.5% | 12 to 15 years | 12 to 15 years |
| AUXILO | 70% of valuation | Up to ₹40 Lakhs | 11% - 13% | 12% - 13.25% | 12 to 15 years | 12 to 15 years |
| IDBI Bank | Up to ₹1.5 Crore | NA | 9.6% - 10.6% | NA | Up to 15 Years | NA |
| State Bank of India (SBI) | Up to ₹1.5 Crore | NA | 10.15% - 11.15% | NA | Up to 15 Years | NA |
Candidates can avail of low HDFC education loan interest rate for abroad by applying for an education loan at the nearest branch. The process to apply offline is straightforward as you can visit the branch, fill in the application form and submit the required documents for approval. Bank officials will guide you throughout in case you need any help.
Here is the step-by-step process of how to apply for an HDFC Education loan online:
Eligibility Check: Verify that you meet the eligibility criteria before applying.
Application Form: Fill out the application form either online or at a branch.
Document Submission: Submit necessary documents such as identity proof, academic records, admission letter, and co-applicant's financial details.
Loan Assessment: HDFC will assess the application, and once approved, the loan will be disbursed.
Loan Disbursement: The approved loan amount will be disbursed directly to the educational institution.
Education loans often involve huge amounts of money and it is advised to take care of the huge interest rate burdens. Here are some tips to save your money and get low interest rates on your loan amount:
Apply with a Co-Applicant: A co-applicant with a good credit history can help reduce the interest rate.
Choose a Shorter Loan Tenure: Opting for a shorter tenure may attract a lower interest rate.
Maintain a Strong Credit Score: A higher credit score can help you negotiate better terms and lower rates.
Select Floating Rate: Floating interest rates are often lower than fixed rates, particularly in a stable market.
HDFC Education Loan offers an excellent opportunity for students to pursue their academic dreams without the worry of financial constraints. With its competitive interest rates, flexible repayment options, and tax benefits, HDFC is one of the top choices for financing education. By understanding the loan's features, eligibility, and repayment terms, students can make an informed decision and start their academic journey with financial confidence.
HDFC education loan interest rate for abroad is the percentage of interest rate charged by HDFC on your loan amount and it starts from 10% depending on your loan amount and type of loan.
HDFC lends education loans abroad with at least a 10% interest rate and it is not possible to get 0% interest rate on education loans.
Education loans to finance your studies are a great way to build your career in case of financial liabilities.
If you don't pay an education loan, banks may issue notices against you and might start legal proceedings in case there is no response from you.
Yes, financial institutions lend education loans without collateral. However, interest rates for these loans are higher compared to secured loans.