Do you want to study abroad and don’t’ know how to get an education loan for abroad studies? In this post, I will explain everything about HDFC education loan for abroad studies.
Mostly, other bank’s education loan for abroad studies has not covered all expenses of the students and includes many charges and fees.
The HDFC Education Loan can be reducing most of the difficulties and unwanted charges for the applicants.
HDFC Ltd has a separate education loan providing company called HDFC Credila.
HDFC Credila Details
HDFC Credila is a subsidiary of HDFC Ltd. and provides education loans for higher studies in India and abroad. HDFC Credila is a dedicated company to work with parents and students to provide quality education to students without any financial hurdles.
It is India’s first Non-banking Finance Company (NBFC) dedicated solely to education loans. The company provides all types of education loans without so many formalities and before getting admissions in the institutes.
HDFC Education Loan for Abroad Studies
HDFC provides funds for foreign studies, applicable for more than 1500+ courses and 2500+ institutes in the 38+ countries. Any students who pass out 12th standard can apply for this loan.
This loan is beneficial for students who wish to continue further study from foreign countries like Canada, Singapore, the USA, the UK, and other renowned countries.
Mostly, other education loans for foreign education cover a limited range of education expenses. The best part of this loan is, it has no capping of the loan amount to borrow.
The loan is available in two formats with collateral and without collateral. If any applicant capable of the mortgage collateral, your loan covers all expenses of the abroad studies.
And without collateral, candidates can borrow up to Rs.35Lakhs from HDFC.
Benefits of the HDFC Education Loan for Abroad
Gets tax benefits under Section 80(E)
Get the loan sanctioned even before you get admission.
Accept multi-city co-applicants.
Flexibility on collateral security
Flexible repayment options
No margin money required
Insurance cover (Health & Life), etc
Eligibility Criteria for HDFC Education Loan for Abroad-
- Candidate/applicant and Co-applicant should be a citizen of India.
- The applicant should apply for an education loan with a primary or secondary co-applicant.
- A co-applicant is a financial guarantor who is responsible for pay the EMI amount on behalf of the applicant.
- Co-applicant could be parents, spouse, siblings as primary co-applicants, and mother-in-law, father-in-law, maternal uncle/aunt, and Paternal uncle/aunt as secondary co-applicants.
Courses Covered for Education Loan for Foreign/Abroad-
HDFC education loan for abroad covered all graduate, postgraduate, and professional courses. There are almost 1500+ courses, including master’s studies, engineering & architecture courses, management courses, and diploma or certificate courses.
Expenses Covered by HDFC Education Loan for Abroad-
- Building funds
- Purchase of equipment, books, instruments, uniforms, etc
- Refundable or Caution deposit
- Travel expenses
- Library, LAB, and Exam Fees
- Health & Accidental Insurance Cover
- Other miscellaneous expenses of the course
HDFC Education Loan for Abroad Interest Rates and Repayment Terms-
HDFC education loan for abroad interest rates is between 9.55% to 13.25% depends on the loan amount, repayment term, collateral, or without collateral, etc.
The loan repayment term is a maximum of 15years with a Moratorium Period.
A moratorium period is a waiting period to start repayment of the education loan. For example, if you apply for an education loan for abroad studies, and after getting the loan amount, you don’t need to pay any EMI during your moratorium period, which is mostly 6 to 12 months.
Required Documents for Education Loan for Abroad-
Here, I mention all the necessary documents to apply for an HDFC education loan for abroad study. Make sure all documents copies are required, so don’t submit any original documents and submit self-attested copies.
A. Two passport size photo of applicant and co-applicant
B. Photo ID proof of both applicant and co-applicant (any one of these):
- PAN Card
- Driving License
- Aadhaar Card
- Voter’s ID card
C. Address Proof of both applicant and co-applicant (any one of these):
- Aadhaar Card
- Voter’s ID card
- Driving License
D. Required Academic documents:
- Admission letter from Institute on their letterhead
- USA Applicant: I-20 Form, UK Applicant: CAS Letter (or equivalent as applicable for the country)
- All educational mark sheets/Certificates (as applicable for the course applied)
- Related entrance exam certificate GRE/ GMAT/ TOEFL/ IELTS etc
- Scholarship Documents (if applicable)
E. Bank Statement of co-applicant:
Required minimum of 8 months bank statement of the co-applicant.
F. Income proofs of co-applicant;
a. For a salaried person
Last 3 months salary slips or certificate from the employer
Income tax returns or form-16 previous 2 years
b. For Self Employed or Professionals
ITR of the last 2 years
A certified financial statement of the last 2 years duly certified by CA
Business/office address proof
G. Collateral Documents if required:
You need to submit the property documents if you selected collateral loan and mortgage immovable assets.
Other charges & fees of HDFC student loan for abroad:
Processing Fees – Up to 1.5% of the loan amount + taxes
Pre-payment charges – Nil
No due certificate / No objection certificate (NOC) – Nil
Late payment of EMI – @ 2 % per month of installment +tax
Installment bouncing charges – Rs. 400/- per dishonor + tax
Installment manual collection – Rs. 200/- per visit + tax
On loan cancellation – 1% of the unveiled sanctioned loan amount + tax.
Updating & handling loan account as per customer request – Rs. 1,500/- + taxes
Document Storage & Retrieval – No collateral loan: Rs. 2,000/- + tax, and for collateral loan Rs. 4,000/- +tax
How to apply:
After filling complete information in the form, you need to attach the related documents, as mention above.
After completed the steps and submitted the carefully filled form and self-attested documents on the website.
Your application went for a review, and if your documents and information are correct, then within 3 to 4 days, the HDFC executive will contact you and complete further formalities.
Getting an education loan is hard and if it is for abroad studies is much more challenging, but HDFC Credila is a pioneer for education loan.
HDFC education loan for abroad studies is much simpler compared to others. Despite these, you need to read the terms & conditions carefully and consult with experts before applying any type of loan.
If you have any other query or concern, you can contact HDFC Credila customer care by dialing this toll-free number (1800-209-3636) or SMS on 53636.
You can also send an email on this address- firstname.lastname@example.org.
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