HDFC Education Rate of Interest

With maximum loan benefits of 100% finance with attractive interest rates, flexible repayment terms, HDFC Credila aims to extend a helping hand to meritorious students and promote academic excellence amongst them with no financial constraints.

  • Flexible loan terms
  • Hassle-free documentation process
  • Attractive Rate of Interests
  • Range of over 950 courses

The rate of interest charged by the bank is based on base rate or MCLR fixed by the bank under guidelines of RBI.

  • The rate of interest charged for studies in India ranges from 9% to 14% per annum for all amounts


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EMI Payable

188 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

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HDFC Education Loan Eligibility

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  • Indian Citizen. A student must be a resident of India or be in possession of Indian passport
  • Above 18 years of age. An applicant must be above the age of 18 years and hence, should have qualified 10+2
  • Graduation/ Post-Graduation courses. You must have secured admission to a graduate or post graduate course in a recognized institute
  • Co-Signer. A co-signer is a must for full-time programmers. Also, co-signer must be an immediate family member

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Applicable Rate of Interest 12.10%+ floating rate(depends on the risks points of the applicant)
1.70% above the base rate
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral For Abroad: 100% finance
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral For Abroad: 100% finance
For Abroad: 30 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing Fee 1.5% of loan amount
INR 10,000
Repayment Period Loan amount upto INR 7.5 Lacs: 10 years
Loan amount above INR 7.5 Lacs: 15 years
15 years
15 years
7 years
Loan for top institutions No
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
Margin 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 15%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit 18 years
no age limit
No age limit
Loan Security Upto 4 lacs- No security required
From INR 4 Lacs to 7.50 Lacs: collateral security in form of third party guarantee
Above INR 7.50 Lacs: Tangible collateral security in form of residential property, HDFC fixed deposit, LIC, or any other policy.
Tangible collateral security is required
Collateral security by third party are also accepted
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST No
50% for SC/ST, and;60% for General category.
Processing Time 7 days
20 days
15 days
14 Days
Prepayment charges If the loan is pre closed within 12 month from date of agreement: 4% of principle amount + taxes
If the loan is fore closed after 12 months: 2% of principle amount + taxesy
Penal charges @ 2% per month on the overdue installment/s
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
@ 2% per month on the overdue installment/s
Mandatory insurance cover No
Travel expeneses yes (one way travel)
Bank transfter allowance No such clause mentioned
No such clause mentioned
Top up loan availability Unavailable
Interest Subsidy Schemes CSIS
Padho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifit Yes
Concession/benefits Doorstep service
Flexible loan terms
Upto 100% finance
Tax benefits
Hassle-free documentation process
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents

How to apply for HDFC Education Loan ?

HDFC Education loan application form can be available online or offline at Bank branches.

Visit the official website and click on HDFC Education Loan

Click Apply Online through Vidyalaxmi Portal

Fill up the form with all the necessary details

Upload the signature, photograph and other documents required

Submit the Form and take print out

After that visit the nearby HDFC Bank for the further proceedings

For offline procedure, student can visit the bank and ask for application form for education loan. The bank representative will then be able to guide you with all necessary details and information about margin money, interest rates, and eligibility criteria about the suitable loan for you.

HDFC Education Loan Details

Loan Limit
INR 20 Lacs
100% Finance
Processing Fee
1.5% of Loan
Loan Security
Up to 4 lacs- No security required
Above INR 4 Lacs and up to INR 7.50 Lacs: collateral security in form of third party guarantee
Above INR 7.50 Lacs: Tangible collateral security in form of residential property, HDFC fixed deposit, LIC, or any other policy.
Loan Repayment
Course Period + 1 year or 6 months after getting the job

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Expenses covered under HDFC Student Loan Scheme

  • Tuition fee
  • Examination Fee
  • Library/ Laboratory fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc
  • Travel expense (one-way travel)
  • Caution deposits and building fund

Education Loan Documents Required ?

Properly filled Application Form with all necessary details

Copies of Age Proof, Identity Proof, and Residence Proof

2 Attested Passport size photograph

Mark sheets of all qualifying courses

Income Proof- 6 months? bank statement, Form 16, and Audited Balance Sheet of last 2 years

Bank account statement of the applicant.

Interest Subsidy Schemes

Padho Pardesh

The scheme ‘Padho Pardesh’ was founded under the Prime Ministers new 15 point programme for welfare of minorities.

Padho Pardesh scheme of Interest Subsidy on education loans for overseas studies aims to promote the academic advancement of students belonging to minority communities. The scheme provides 100% interest subsidy to students belonging to the minority community

Padho Pardesh

Eligibility to avail this loan from PNB Bank

  • Masters, M.Phil or Ph.D. level in institutes/ universities overseas. (The list of courses covered is given below)
  • Loan sanctioned by a bank which falls under the Education Loan Scheme of Indian Banks Association (IBA).
  • Students should belong to minority community viz. Muslims Christians, Sikhs, Buddhists, Jains, and Parsis
  • Total income of the employed candidate or his/ her parents/ guardians (in case of unemployed candidates) from all sources, should not exceed INR 6 Lacs per annum
  • Income certificate has to be submitted by the notified authority in the State/ Union Territory

Details regarding PNB ‘Padho Pardesh’ Scheme

  • Interest Payable for moratorium period will be borne by Government of India
  • Post moratorium period, interest on the outstanding amount is borne by the applicant 
  • The Scheme is only applicable for higher studies abroad, i.e. only if the degree is awarded by the foreign university
  • Availed only once, either at Masters or Ph.D. level 
  • Maximum loan for studying overseas is INR 20 Lacs.

Conditions for Interest Subsidy

  • Violation of any condition of the scheme will result in discontinuation of subsidy there forth
  • obtained subsidy by false statement/ certificates will result in same
  • Not be available to the students who either discontinued the course midstream or are expelled from the institutions on disciplinary or academic grounds
  • The benefits under the scheme will be ceased if the student gives up Indian citizenship during the tenure of the loan.
  • The terms and conditions of the scheme are at the discretion of Ministry of Minority Affairs.
  • They can be changed to enhance procedure and attain effective and efficient implementation

Quick Facts about Padho Pardesh Scheme

MarginMaximum Loan for pursuing higher studies overseas is INR 20 Lacs
Repayment (Maximum)The interest payable by the students will be borne by GOI till moratorium period. Post moratorium period, student will have to borne the interest on outstanding loan amount.
Repayment Holiday/MoratoriumCourse period + 1 year or 6 months after getting job
Prepayment ChargesNil

Q. How to Avail PNB ‘Padho Pardesh’ Scheme?

Answer: Students can yield benefits of the scheme by following the below mentioned procedure:

  • Students are supposed to inform their lending banks about the recent launched scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into portal of Padho Pardesh.
  • The portal will remain open for the period of two month in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Bio- technology/ Genetic EngineeringIndustrial Environmental Engineering
Nano- technologyMarine Engineering
Petro-chemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etcIndustrial Safety Engineering
MedicalAgriculture & Agro Technology
AgronomyFloriculture & Landscaping
Forestry & Natural ResourcesFood Sciences & Technology
Plant PathologyHorticulture
Energy StudiesFarm Power & Machinery
Veterinary SciencesSoils & Water Management
Plant Breeding & GeneticsSmall- scale Rural Technology
Ocean & Atmospheric SciencesMBA/MCA

*The courses might change as per discretion of Ministry


Frequently Asked Questions


What schemes does HDFC Credila considers for its education loans?

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There are other multiple schemes offered by HDFC Credila apart from the basic education loans. These are:

  • CSIS
  • Padho Pardesh
  • Model Loan Scheme for Vocational Education and Training

In whose name is the loan granted?

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The loan is granted in the name of the student


Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.


What is the age limit for availing loan in HDFC Credila?

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There is no age restriction for the applicant applying for education loan from HDFC Credila. He/ she should only meet the other stated eligibility criteria’s.


Are minors eligible to apply for HDFC Credila Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.


What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.


Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.


Where can I avail HDFC Credila Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.


Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.


Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on HDFC Credila web portal, you can view all details related to education loan online.


Is there any minimum aggregate marks to meet the eligibility criteria to avail HDFC Credila education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students


What is the discount/ rebate offered by HDFC Credila?

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  • 0.50% concession is given to girl students
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

What all is included in tangible collateral security?

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Mostly HDFC Credila asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of HDFC Credila. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.


Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.


Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.


What is Moratorium Period?

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Course Period plus one year, or six months after getting a job


What is tenure of an education loan?

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Tenure of education loan provided by HDFC Credila is maximum 15 years


What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.


What all expenses are covered under this course?

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Expenses covered by HDFC Credila education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Will my travel expense will be covered if I take loan from HDFC Credila?

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Yes, travel expenses are covered under this loan


I have taken admission through management quota. Am I eligible?

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This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.


What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)


Are there any special benefits if I have secured admission to one of the top premier institutes?

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HDFC Credila does not provides any additional concession to students who have secured admission in top rated institutes


What is the processing fee or prepayment charges?

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The education loan offered by HDFC Credila does not carry any prepayment charges. 1% processing fee is charged that is refundable upon the acquisition of loan.


Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course. 


Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Are diploma or certificate courses considered under HDFC Credila education Loan (both for India and Abroad)?

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Diploma courses are eligible under HDFC Credila Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping.


Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from HDFC Credila.  


Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.


What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

How many guarantors do I need to borrow loan from HDFC Credila?

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You need at least 2 guarantors to avail loan from HDFC Credila.


What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.


What are maximum term for repayment?

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Maximum Term for repayment for Loan amount upto INR 7.50 Lacs is 10 years and maximum term for repayment is 15 years for loan amount above INR 7.50 Lacs


How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.


What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee


If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.  


What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance. 


If I am joining the course soon after current course, can I get an extension?

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Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher


What is interest rate of education loan?

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The interest rate is different for different loan offered. Refer the bank for the same.


What is interest subsidy on education loan?

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HDFC Credila offers

  • Model Loan Scheme for Vocational Education and Training for students who wish to pursue vocational courses
  • Padho Pardesh Scheme for minority sector students who wish to pursue their studies abroad.
  • Interest Subsidy scheme for economically weaker sections and to promote education amongst them

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower

If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

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No, the interest subsidy scheme is available only for studies applying for studies in India.


What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.


Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).


Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.


Can I repay my loan in foreign currency even if my bank is in India?

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Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.


Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy


Are there any additional benefits on availing loan from HDFC Credila?

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There is no additional benefit mentioned by HDFC Credila. Students may contact the official website for the same.


What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.


Are NRIs eligible for the education loan?

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NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.


Is Visa a necessary document for studying abroad?

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Visa is needed as a document proof but it is not a sole requirement.


What all procedures do one have to go through while applying for abroad?

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A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.


If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number: +91 22 6652 1000, 1800 209 3636

Customer Care Id:

Local rates apply on every call

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