How HDFC Bank Lends to International Students

Going to college abroad is a great way to access world-class education, but it can be very expensive. As an international student, looking for a great source of educational funds can be stressful. 

The lack of financial resources shouldn’t be an obstacle in pursuing your dream degree. Fortunately, HDFC bank offers education loans for those who wish to study abroad.

Attending college in a foreign country? HDFC bank, through subsidiary company HDFC Credila, offers access to an array of loan schemes that can aid international students. The interest rates are competitive and there is a flexible 15-year repayment plan. 

If you want to take out an education loan from HDFC bank, here are some things you need to know.

Loan Schemes

HDFC bank offers three different educational loan schemes: Education Loan for Indian Students, Central Government Interest Subsidy Scheme, and Education Loan for Foreign Students. 

HDFC offers an Education Loan for Indian Education of up to Rs.20 lakh with an annual interest rate of 9.25%-13.42%. HDFC bank also offers an Education Loan for Foreign Students where an Indian resident can get an unsecured loan of up to Rs.35 lakh. The loan will cover various fees and expenses including library fees, exam fees, health insurance, and book and equipment expenses. 

Education loans can be availed of for more than 900 courses in 36 countries, but a co-applicant is required in case of full-time courses. The application process is also simple and easy to follow. The repayment plan can go up to 15 years, and an applicant can even enjoy tax benefits under Section 80(E) of the IT (Income Tax) Act.

Who is eligible to apply?

You are eligible to apply for an Education Loan for Foreign Education if you are an Indian resident aged 16-35. You must also have a co-applicant in case you are enrolling in full-time courses.

Required documents to apply

You must prepare the correct documents to apply for an educational loan for your studies abroad. Listed below are the required documents that you must present:

• Accomplished application form
• 2 passport-size photographs of the applicant and co-applicant
• 1 proof of residence (Voter ID, Aadhar Card, Passport, or Driving License)
• 1 ID with photo (Voter ID, Aadhar Card, Passport, Permanent Account Number/PAN Card, or Driving License)
• Academic documents

• Certificate or marksheet of 12th Exam
• Marksheet or certificate of subsequent years of education
• If applicable, you may also need the following:
  • IELTS/TOEFL/GMAT/GRE marksheets
  • Scholarship documents
  • Entrance exam marksheets

• Proof of admission, if already available. You can apply for a loan even before confirmation of admission.
• Co-applicant’s bank statements (for the past eight months), salary certificate (for the last three months and printed on employer’s letter) income tax returns (for the last two years), and proof of office such as a utility bill or lease deed (for self-employed co-applicant). A self-employed co-applicant also needs to present financial statements (for the last two years) that are duly certified by a chartered accountant.

You will also need to present supporting documents when securing an education loan with collateral.

How to apply for a loan

Here are the steps for applying for an education loan with HDFC.

1. Gather all the supporting documents required for the application.
2. Fill up the online application form available on the HDFC Credila website.  Make sure all the fields are complete before submitting it. You can also print out the form.
3. Wait for HDFC Credila to contact you for follow-up and questions regarding your loan.
4. An HDFC Credila representative will drop by your residence to collect the signed loan application form and the required supporting documents.
5. The credit team from HDFC Credila will review and underwrite your student loan application. At this point, you may be contacted for any additional information needed.
6. HDFC Credila approves your loan, and you will be asked to sign the education loan agreement to complete the disbursement formalities.
7. HDFC Credila will then deposit the education loan amount in the required bank account, and you can start using it for your studies abroad.

And that’s all you need to do to make sure that your journey as an international student is adequately funded. If you need more than what you currently have, consider taking out a student loan like the one offered by HDFC.

It can be stressful to look for ways to fund your education. Do not worry as MSM Unify provides the information you need so you can learn more about student loans and other financing options.