HDFC Bank Study Loan Abroad

In today’s world, people are now aiming to do higher studies abroad due to more competencies available in every respective field of study. Despite these opportunities, the expenditure in studying overseas is a high-range barrier to many aspiring scholars. HDFC Bank Study Loan Abroad helps support students who face such high-range expenditure with funding to study at the world’s premier universities. In the following article, all essential aspects of HDFC Bank Study Loan Abroad-eligibility criteria, process of loan application, etc and benefits of choosing HDFC Bank for your educational loan – will be discussed.

About HDFC Bank Study Loan Abroad

HDFC Bank is the largest Indian private-sector bank which provides several financial products and services. Out of all its products and services, HDFC Bank Study Loan Abroad is exclusively provided for a student seeking higher education from a foreign country. The cost includes, of course, fees, staying expenses, travelling, etc., in the concerned foreign nation. With the increasing number of students opting to study abroad, HDFC Bank presents an excellent financial solution for those in need of funding.

Key Features of HDFC Bank Study Loan Abroad

Before going into the details of eligibility, application procedure, and benefits, it is important to know the key features of HDFC Bank Study Loan Abroad. Here are the primary aspects of the loan:

Loan Amount: HDFC Bank provides study loans of maximum INR 20 lakhs for courses abroad. The loan amount is decided considering the cost of the course, as well as the financial needs of the student.

Repayment Tenure: The period of repayment of the loan can be up to 15 years, giving the student sufficient time to repay after completing his or her education.

Competitive Interest Rates: The interest rate on HDFC Bank Study Loan Abroad is competitive as per the amount of the loan and the credit profile. The bank provides floating, as well as fixed-rate options.

Collateral is required for amounts above 7.5 lakh only for which students will have to mandatorily give collateral either as property or a fixed deposit or any asset that one uses against it.

Moratorium Period: Loan is provided with a moratorium period. During this time, there will be no repayments needed from students. A standard moratorium period includes the whole length of study along with additional six months following completion, therefore giving time for gaining employment.

Tax Benefits: Income Tax Act section 80E provides the facility that any interest paid against the loan would be a benefit when calculated for tax liabilities and reducing taxable income of the person concerned.

HDFC Bank Study Loan Abroad Eligibility Criteria

To seek an HDFC Bank Study Loan Abroad a student has to fulfill definite eligibility criteria. These serve as a criterion for judging the transparency of the HDFC Bank lending process and verify whether the student is truly a prospect to repay the loan one of these days in the future. Here’s the key requirement eligibility for such funds.

Indian Nationality. 

The student must be from India.

Course Type: The loan is available for undergraduate, postgraduate, and diploma courses from recognized institutions abroad.

Admission Confirmation: The student must have secured admission to a recognized foreign university or institution.

Age: The student should typically be between 18 to 35 years of age at the time of application. Some flexibility is provided based on the course and country of study.

Academic performance is important but is not one of the strict conditions for getting loans approved. Strong academic background enhances the chance of loan approval.

Co-applicant The loan has to be a co-applicant, typically a parent or guardian who is able to provide financial security and be assured that the loan is going to be paid off.

Repayment Capacity: The borrower or co-applicant must have a steady source of income, either through employment or other means, to show that the loan can be repaid.

Documents Required for HDFC Bank Study Loan Abroad

Applicants applying for HDFC Bank Study Loan Abroad have to present a set of documents stating the eligibility and financial credibility. Here is a list of documents that are required by students while submitting the application form,

Admission Letter: The copy of admission letter issued by a foreign institution or university.

Educational Qualifications: Copies of academic transcript, certificate, and mark sheets.

ID Proof: Government-issued identification such as an Aadhaar Card, Passport, or Voter ID

Proof of Address: Utility bills or bank statements or rent agreement proving the current address

Co-applicant’s Income proof: Pay slips, income tax returns, or bank statements demonstrating his or her financial capacity to service.

Collaterals are essential and shall be submitted in the loan amount above INR 7.5 Lakhs. The documents concerning property or asset to be utilized as collateral.

Bank Statements: The latest bank statements are sought to verify the applicant’s and the co-applicant’s financial condition.

Photographs: Passport size, as needed for the application form.

How to Apply for HDFC Bank Study Loan Abroad?

How to apply for HDFC Bank Study Loan Abroad is a very simple process. Students can apply online via the HDFC Bank website or visit a branch for assistance. Here is a step-by-step guide to applying for the loan:

Conduct a Research Loan Options: Know the loan features, eligibility criteria, and terms either from the HDFC Bank website or by consulting with a bank representative.

Fill Out and Submit the Application: Use the online application form or simply go to an HDFC Bank branch and submit your loan application.

Submit Documents: Use all the documents as mentioned earlier. Ensure that all the documents submitted are clear and readable.

Loan Processing: After filing an application, HDFC Bank will review the loan application, that involves credit checks, checking collateral, etc.

Loan Sanction: When the loan gets sanctioned, the bank issues a sanction letter stating the amount, interest rates, and repayment schedule of the loan.

Disbursal: As per the bank’s policy, HDFC Bank disbursement is usually made to the educational institute or into the student’s account.

Benefits of Selecting HDFC Bank Study Loan Abroad

There are numerous benefits associated with selecting HDFC Bank for your study loan. Here are some of the key benefits:

Flexible loan terms: The bank offers flexibility in terms of loan amounts, repayment tenure, and interest rates, ensuring that students can find a suitable option.

Global recognition: HDFC Bank has a good reputation and vast experience in handling student loans, which adds credibility to the loan process.

Quick Disbursement: HDFC Bank ensures that the disbursement of the loan happens as quickly as possible, allowing students to meet their financial requirements in time.

Competitive Interest Rates: HDFC Bank offers competitive interest rates that make it a cost-effective option for financing education abroad.

Comprehensive Coverage: The loan covers all aspects of studying abroad, including tuition fees, accommodation, travel, and more.

Tax Benefits: As stated, student loans from HDFC Bank can claim the tax benefits offered under Section 80E of the Income Tax Act on the interest paid.

Online Application Process: Easy to understand online application system facilitates students to easily apply for the study loan through HDFC Bank.

Repayment of HDFC Bank Study Loan Abroad

Repayment of HDFC Bank Study Loan Abroad is one of the key aspects of managing finances after completing education abroad. Here are some details about the repayment process:

Moratorium Period-There is also a moratorium period in which the student is not bound to repayment. The normal period extends to the time taken up by the course plus additional six months that allows sufficient time for completing the courses and finding suitable employment for the students.

Repayment Options: The student will have to repay the loan by EMIs after the moratorium period. The loan can be paid in a fixed or floating interest rate format, which the student would prefer.

Prepayment Facility: HDFC Bank permits the borrowers to prepay the loan without any penalty, thereby giving the student the facility to pay the loan back earlier if their financial position improves.

Flexible Tenure: The loan repayment period can be 5 to 15 years, depending on the amount of loan and the student’s capacity to repay.

Conclusion

HDFC Bank Study Loan Abroad and Lorien Finance offer exceptional financial solutions for students aspiring to pursue higher education overseas. With attractive loan terms, competitive interest rates, and straightforward application processes, they are trusted partners for students across India. Whether your study destination is the United States, United Kingdom, Australia, or beyond, both HDFC Bank and Lorien Finance provide tailored solutions to meet your needs. They offer flexible repayment options and a moratorium period, ensuring students can focus on their studies without the immediate pressure of loan repayment, making your study abroad dream more achievable.

If you are planning to study overseas, HDFC Bank Study Loan Abroad is your best bet for a finance option that is reliable and affordable.