Education Loan for Indian Education Fees & Charges

HDFC Bank does not levy processing fees for loans up to ₹7.5 lakh. The processing fee for Education Loans is a 1% of the loan amount for amounts exceeding ₹7.5 lakh. This fee is applicable to cover the costs associated with processing the loan application and is a standard practice among lenders offering Education Loans. It's important for borrowers to be aware of these charges when considering an Education Loan, as they can impact the overall cost of borrowing. Understanding the processing charges and other fees associated with the loan can help borrowers make informed decisions and plan their finances effectively.

HDFC Bank offers Education Loans with interest rates starting from 10.50% per annum. There are no processing fees levied on loans up to ₹7.5 lakh. However, loan processing charges of up to 1% are imposed for loan amounts exceeding ₹7.5 lakh. Legal and incidental charges are applicable at actuals, and stamp duty and other statutory charges are as per the applicable laws of the state. It's important for borrowers to review and understand all the associated charges and fees before applying for an Education Loan to ensure they are fully aware of the financial commitment involved in borrowing.

Below are the key factors that affect Education Loan EMIs: 

Loan Amount: The amount you borrow influences your EMIs. A larger Loan amount will typically result in higher monthly instalments, whereas borrowing a smaller amount will lead to lower EMIs. 

Interest Rate: The Education Loan interest rate is a key factor in determining your EMI. 

Loan Tenure: The repayment period or tenure significantly affects the EMI. You can opt for either a short or a long tenure. 

Prepayment or Part-payment: If the borrower makes prepayments or part-payments during the loan tenure, it reduces the outstanding principal. Prepayment then consequently lowers the EMI or shortens the loan tenure. No prepayment penalty will be levied for prepayment of loan any time during the repayment period. 

Moratorium Period: Repayment Holiday / Moratorium: Course period + 1 year. Repayment of the loan will be in equated monthly instalments for a period of 15 years for all categories (excluding course and moratorium period).

Here are key factors to keep in mind before taking an Education Loan: 

Loan Amount: Evaluate the total funding required for your education by assessing tuition fees, living expenses and any additional costs. Need-based finance to meet the expenses will be considered by the banks taking into account minimum margins. While assessing the quantum of finance, banks ensures that a student is neither over financed nor under financed. Banks may consider the government scholarships or scholarships from any source are credited to the loan account, if the scholarship amount was not netted off while fixing quantum of finance. Banks may also consider capping Education Loan amount (stream wise/ institution wise) by taking into account reputation and placement history of the education institution concerned. 

Interest Rates: Look for both fixed and floating rates and understand how they affect your EMI. 

Repayment Tenure: Evaluate the Loan tenure offered. Choose a tenure that balances manageable monthly payments with total interest costs. 

Processing Fees and Charges: Review any processing fees, legal charges or other costs associated with the Loan. 

Eligibility Criteria: Ensure you meet these criteria to avoid delays in Loan approval. 

Impact on Credit Score: Understand how taking an Education Loan may affect your credit score. Timely repayments can improve your score, while defaults can harm it, affecting your future borrowing ability. 

The interest rate on the HDFC Bank Education Loan starts from 10.50% per annum, depending on your profile and eligibility. From January to March 2025, actual rates ranged between 10.00% and 13.03%, with an average Internal Rate of Return of 11.61%.

Under the HDFC Bank Education Loan for Indian Education, no processing charges are levied for loan amounts up to ₹7.5 lakh. For loan amounts above this, a processing fee of 1% is applicable on the sanctioned amount.

For the HDFC Bank Education Loan, legal and incidental charges are recovered at actuals. These are expenses incurred by the bank during documentation or any legal formalities related to the loan agreement.

Stamp duty and other statutory charges for the HDFC Bank Education Loan are applied as per the prevailing laws of the respective state. You will be responsible for paying these charges as required during the documentation process.

If you delay an instalment under the HDFC Bank Education Loan for Indian Education, a penalty of 18% per annum plus applicable government taxes is charged on the overdue amount for the duration of the delay.

If an EMI is returned due to insufficient funds or other reasons under the HDFC Bank Education Loan for Indian Education, an EMI return charge of ₹450 is applicable. This is in addition to the interest charged for the days of delay.

There are no charges for cheque or ACH swapping in the HDFC Bank Education Loan for Indian Education. You can make such changes without incurring any fees, subject to the bank’s procedural requirements.

No pre-payment or cancellation charges apply under the HDFC Bank Education Loan for Indian Education. However, interest for the interim period, CBC/LPP charges, and applicable stamp duty will be retained in case of loan cancellation.

There are no charges for loan re-booking or re-scheduling under the HDFC Bank Education Loan for Indian Education. You can opt for these services at no additional cost, based on eligibility and the bank’s approval.

From January to March 2025, the HDFC Bank Education Loan for Indian Education had an Annual Percentage Rate (APR) ranging from 8.97% to 13.42%, with an average APR of 11.45%, based on the loan’s total cost over its tenure.