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HDFC Bank Education Loan

Last Modified : June 27, 2018

HDFC presents an upgraded financial solution with exemplary features for students aspiring to get admitted in premier institutions with financial support for studies in India and Aborad.

HDFC Bank collaborated with Credila to formulate an HDFC Credila Education Loan for students aspiring to study overseas. 

The Bank provides Education Loans for India and Abroad for over 950 courses and also pre- approves the loan for ease of the students.

Why HDFC Bank?

HDFC Bank Education Loan scheme is extended with affordable interest rates and maximum benefits such as doorstep service, tax benefit, hassle-free documentation, etc. which inturns makes it a most preferred bank by the students.

Government of India provides various interest subsidy schemes such as Central Government Interest Subsidy Scheme for HDFC Bank Education Loan to ease their loan liability.

What makes you eligible for HDFC Bank Education Loan 

  • Indian National
  • Above 18 years of age
  • Graduation/ Post-Graduation courses
  • Co-applicant is must for full-time programmers
  • Co-applicant must be a member of the immediate family

Key Benefits of HDFC Bank Education Loan 

  • Doorstep service: HDFC Bank provides comfort and convenience to the borrower and his/ her family through the Doorstep Service. Where the documents can be collected at students home to avoid multiple branch visits.
  • Tax benefits: HDFC Bank provides attractive tax benefits under Section 80E. Tax Benefit significantly lowers the effective rate of interest and makes your education loan cost-effective
  • Pre-Approval before Confirmed Admission: To avoid any last minute hassles, HDFC Bank provides the benefit to plan finances for education even before the admission confirmation. Loan Sanction letter can be used as proof of funds to ensure a smooth journey to your dream college.

Quick Facts about HDFC Bank Education Loan


Upto INR 4 Lacs: no margin

Above INR 4 lacs: 5%

Maximum Loan Limit

INR 10 Lacs


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.

Moratorium Period

Course Period + 1 year or 6 months after getting the job

Repayment (Maximum)

Loan amount upto INR 7.5 Lacs: 10 years

Loan amount above INR 7.5 Lacs: 15 years

Prepayment Charges

Pre-closed within moratorium period: 4% of principal amount + taxes

Foreclosed after moratorium period: No prepayment penalty

Processing Fee

1% of Loan

Additional Facts about HDFC Bank Education Loan for India

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

Courses covered under HDFC Bank Education Loan 

Graduation and Post-graduation courses in following disciplines -

  • Professional courses in Management in all verticals
  • Graduation courses in Engineering in all branches and streams for recognised institutions
  • Graduation and Post-graduation courses in medicine, dentistry, pharmacy, physiotherapy.
  • Architectural courses
  • Hotel and Hospitality management and administration.
  • Agricultural courses
  • Degree courses in pure science disciplines like Maths, Botany, Zoology, and Chemistry.
  • Degree/Diploma courses in advanced sciences
  • Post graduate courses in computer applications like MCA / MCM

Expenses covered under HDFC Bank Education Loan 

  • Tuition fee 
  • Examination Fee 
  • Library/ Laboratory fee
  • Hostel Fee .
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • Other travelling cost
  • Caution deposits and building fund

Documents required for HDFC Bank Education Loan 

  • Education Proof: Admission letter with fee break up, SSLC, HSC and Graduation mark sheets
  • Income Proof
  • For salaried employees: Last three pay slips with date of joining, 6 months bank statements, Form 16 for previous year along with ITR
  • For Self Employed: ITR for last 2 year, Audited balance sheet of last 2 years’, 8 months bank statement, Proof of turnover
  • For Self Employed Professional: ITR for last 2 year, Audited balance sheet of last 2 years’ and P/L, 8 months bank statement, Proof of qualification
  • Other Documents
  • Proof of Age
  • Signature Proof- PAN/ Card/Passport for signature verification of borrower and co- borrower, Credila’s completed signature authentication form/ 10th or 12th Mark sheet with signature (for students below 21 years)
  • Identity Proof
  • Residence Proof
  • Properly Filled in Application Form
  • 2 Passport size Photographs

Central Government Interest Subsidy Scheme for HDFC Bank Education Loans

HRD Ministry has introduced interest subsidy scheme for students seeking admissions to approved technical and professional courses from recognized institutes after the completion of Class 12 from economically weaker sections with a gross income of up to INR 4.5 Lacs.

Documents Required for CSIS by HDFC Education Loan

  • Original income certificate
  • Interest Subsidy Agreement
  • Bonafide student letter from the institution.
  • Adhaar card number of student

Key Features ofCIS by HDFC Education Loan

  • Subsidized interest rates
  • All recognised courses and institutes are covered under this scheme
  • The annual income should be up to INR 4.5 Lacs.
  • Extra registration concession for the girl child


Q. What schemes does HDFC Bank considers for its education loans?

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

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

Q. In whose name is the loan granted?

Answer: The loan is granted in the name of the student

Q. Is the loan contract executed only in student’s name?

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

Q. What is the age limit for availing loan in HDFC Bank?

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

Q. Are minors eligible to apply for HDFC Bank Education Loan?

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

Q. What does margin on any loan mean?

Answer: 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.

Q. Should the student’s margin be paid upfront in the starting?

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

Q. Where can I avail HDFC Bank Education Loan?

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

Q. Is there any provision to apply for loan online?

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

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

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

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

Answer: 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

Q. What is the discount/ rebate offered by HDFC Bank?


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

Q. What all is included in tangible collateral security?

Answer: Mostly HDFC Bank asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of HDFC Bank. 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.

Q. Can I place my family property as collateral?

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

Q. Is scholarship or assistantship included in the margin?

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

Q. What is Moratorium Period?

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

Q. What is tenure of an education loan?

Answer: Tenure of education loan provided by HDFC Bank is maximum 15 years

Q. What does MCLR stands for?

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

Q. What all expenses are covered under this course?

Answer: Expenses covered by HDFC Bank education loan are:

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

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

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

Q. What do you mean by reputed or recognized institutes?

Answer: 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)

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

Answer: HDFC Bank provides no concession to students who have secured admission in any premier institutes.

Q. What is the processing fee or prepayment charges?

Answer: The education loan offered by HDFC Bank have:

Prepayment Charges: 4% on outstanding amount id loan is foreclosed/ part prepaid any time before the expiry of moratorium period.

Processing Fee: 1% processing fee which is refundable at the time of acquisition of loan

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

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

Q. Why is Pan Card necessary?

Answer: 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

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

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

Q. Is a co-borrower necessary for loan?

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

Q. Who can be my co-borrower?

Answer: 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.

Q. What all documents are required from the co-borrower?

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).

Q. How many guarantors do I need to borrow loan from HDFC Bank?

Answer: You need at least 2 guarantors to avail loan from HDFC Bank.

Q. What is the KYC requirement in education loan?

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

Q. What are maximum term for repayment?

  • Loan amount upto INR 7.5 Lacs: 10 years
  • Loan amount above INR 7.5 Lacs: 15 years

Q. How can I repay the loan?

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

Q. What is EMI? How are they calculated?

Answer: 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.
  • Or simply you can use the EMI calculator provision available on HDFC Bank’s official website.

Q. What are the charges for late EMI payment?

Answer: 24% per annum on the outstanding amount is charged for the late EMI payment and INR 500 for every bounced cheque.

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

Answer: 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

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

Answer: 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.  

Q. What is method of application of interest on education loan?

Answer: 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. 

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

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

Q. What is interest rate of education loan?

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

Q. What is interest subsidy on education loan?

Answer: HDFC Bank offers

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

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

Answer: 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

Q. What is employment verification in an education loan?

Answer: 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.

Q. Are there any tax benefits in education loans?

Answer: 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).

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

Answer: 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.

Q. Why do banks require insurance policy as security?

Answer: 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

Q. Are there any additional benefits on availing loan from HDFC Bank?

Answer: There is no additional benefit mentioned on the official website while applying fro

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

Answer: 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.

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

Answer: 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:

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