Features of HDFC Bank Unsecured Education Loan
- Loan Amount and Coverage: Maximum Loan Limits: Unsecured loans are available up to ₹45 lakh without requiring collateral, depending on the course, institution, and applicant's profile. Covered Expenses: Covers 100% of education-related expenses including tuition fees, living costs, travel expenses, examination fees, books, equipment, and other necessary costs like laptops.
- No Collateral or Third-Party Guarantee: No need to pledge assets such as property, fixed deposits, or other securities. Approval is based on the creditworthiness of the borrower and co-applicant, including factors like academic background, course employability, and co-applicant's financial strength.
- Competitive Interest Rates: Interest rates typically range from 9% to 14.1%, subject to change based on the bank's discretion and the applicant's profile. Rates are linked to HDFC Credila's Benchmark Lending Rate (CBLR) with a spread determined by factors like the student's academic record, course, institution, and co-applicant's credit history. Simple interest is charged during the study period and moratorium period, with servicing of interest optional during this time.
- Flexible Repayment Tenure: Repayment tenure extends up to 14 years, including the moratorium period (course duration + 6 months to 1 year after course completion or securing a job, whichever is earlier). Offers pocket-friendly Equated Monthly Installments (EMIs) with options to start repayment after the moratorium period or pay simple interest during the study period to reduce the loan burden.
- Moratorium Period: No repayment of principal or interest is mandatory during the course duration and an additional grace period of 6 months to 1 year. Accrued interest during the moratorium is added to the principal at the start of the repayment period, and EMIs are calculated accordingly.
- Tax Benefits: Interest paid on the loan is eligible for tax deductions under Section 80E of the Income Tax Act, 1961, with no upper limit on the deduction amount. This benefit is available for up to 8 years or until the interest is fully repaid, whichever is earlier.
- Wide Course and Institution Coverage: Covers over 950 courses across 35 countries, including graduate, postgraduate, and professional courses like MS, MBA, MBBS/MD, and executive management programs. Eligible institutions include those recognized by UGC, AICTE, Government, AIBMS, ICMR, or international universities with strong reputations.
- Quick and Transparent Processing: Minimal and straightforward documentation for faster processing, with loan disbursement possible within 15 days of submitting complete documents. Online and offline application options available, with a hassle-free digital process for convenience. No hidden charges, ensuring transparency throughout the loan process.
- Preferential Rates for Top Institutions: Students admitted to top-ranked universities or colleges may receive preferential interest rates, reducing the overall cost of borrowing.
- Co-Applicant Requirement: A co-applicant (parent, guardian, spouse, or parent-in-law) is mandatory for full-time courses to strengthen the loan application. The co-applicant's income, credit history, and financial stability play a key role in loan approval and determining the loan amount.
- Loan Sanction Before Admission: HDFC Credila allows loan sanction even before admission confirmation, helping students demonstrate financial readiness for visa processes (e.g., I-20 for US universities).
- Loan Transfer Facility: Allows students to transfer existing education loans from other lenders to HDFC Bank for better terms, such as lower interest rates, extended repayment periods, or improved customer service.
