Looking for a Suitable Education Loan from HDFC Bank for Higher Education?

Look no further. This page summarises the information you will need on HDFC Bank’s Education Loan for studying in India.

HDFC Bank Education Loan for Higher Studies in India

This HDFC Bank study loan helps students finance their education and realise their dreams of pursuing higher education at recognised educational institutions in India. The maximum loan amount you can get is Rs. 20 lakh for studying in India. Applicants can avail tax rebate under Section 80E of the Income Tax Act, 1961 on interest paid for this loan. Let’s look at its different features:

Features of HDFC Bank Education Loan for Higher Studies in India

Why this Loan?

  • The loan is meant to help students who have secured admission into a higher education course in a recognised institution in India through Entrance Test or Merit-based Selection Process
  • This HDFC Bank Education Loan for Indian Education is disbursed as a series of payments over the required number of years and not as a lump sum
  • The loan can be taken for all expenses directly related to the course including for fees, purchase of books, laptops, hostel fees, lab fees, examination fees, etc.
  • You can get a collateral-free loan of up to Rs. 7.5 lakh under this scheme

Loan Amount

  • The maximum loan amount you can get is Rs. 20 lakh for pursuing higher education in India
  • You can avail an unsecured loan of up to Rs. 7.5 lakh under this scheme


  • The annual percentage rate for this HDFC Bank Education Loan ranged from 9.25% to 13.68% during the July to September 2020 period. The average annual percentage rate was 11.61%


  • The maximum repayment period for this loan is 15 years
  • The loan amount for each year is repayable in 12 Equated Monthly Instalments (EMIs)
  • The moratorium period for this loan is course duration + 12 months or course duration + 6 months after landing a job, whichever is earlier

Security Needed

  • Loans up to Rs. 7.5 lakh: This is a collateral-free loan but co-obligation of parents is mandatory
  • Loans above Rs. 7.5 lakh: A tangible collateral equivalent to the loan amount is mandatory for this loan. Parents must be co-borrowers of the loan


  • The applicant must be an Indian national between 16 and 35 years of age
  • The student should have gained admission into a recognised higher education course in a recognised institution in India through Entrance Test or Merit-based Selection process

Eligible Courses

  • Approved courses leading to Graduate and Postgraduate degrees
  • PG Diplomas conducted by college and universities recognised by various bodies and authorities such as UGC, AICTE, ICMR, etc. These include:
    • Universities, colleges and institutions identified by Ministry of Human Resource Development, Govt of India for imparting technical education or identified as institutions of national importance
    • Universities, colleges and institutions accredited by National Assessment and Accreditation Council and National Board of Accreditation

Borrower Contribution to Total Cost (Margin Money)

  • As of November 2020, the margin money for this loan is not mentioned on the bank’s website. Please check with the bank for details

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose a course costs Rs. 20 lakh in which case the borrower will have to pay 5% of Rs. 20 lakh which is Rs. 1 lakh. The bank will cover the rest.

Processing and Other Charges

  • Rs. 1,000 or up to 1% of the total loan amount, whichever is higher

Uses of the Loan

  • Course, examination, library and laboratory fees
  • Cost of books, stationery, equipment, instrument, journals and uniforms
  • Caution deposit, building fund or refundable deposit required by the institution
  • Travel expenses if needed for the course
  • Hostel or boarding fees
  • Cost of computers needed for the course
  • Other expenses such for study tours, project work, thesis etc. needed to complete the course

Other Features to Know

  • The bank may ask for the student’s progress report to be submitted with the bank at regular intervals
  • The loan is disbursed directly to the school, book seller or publisher, computer seller, and so on and not to the applicant(s)
  • The bank charges 24% per annum on overdue EMIs calculated from EMI due date
  • Students can opt for insurance under Credit Protect from HDFC Life. The premium is included in the loan amount

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • A declaration/ affidavit from the borrower confirming that, no educational loans have been availed from other banks
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Admission Letter, Course Details and Prospectus as proof of admission
  • Fee Details with Demand of Fee by the Institution
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • For the co-borrower, documents as age, ID, signature, address, employment/business/income proofs are required
  • Income Proof for Salaried Employees (applicant/co-borrower): Latest 3 month salary slip, Bank Statement of last 3 months of salary account and Latest Form 16
  • Income Proof for Self-employed Professionals (applicant/co-borrower): Business/Current Account Bank Statement of last 6 months,  ITR of last 2 years along with computation of income and Proof of Highest Professional Degree
  • Income Proof for Self-employed Individuals (applicant/co-borrower): Business/Current Account Bank Statement of last 6 months,  ITR of last 2 years along with computation of income and Business Continuity proof

Reference Facts

  • HDFC Bank Website: www.hdfcbank.com
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1860 267 6161

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