Getting a good education is one of the biggest dreams for many students. But sometimes, high fees of colleges and universities become a challenge. To solve this problem, education loans are very helpful. One of the most trusted options for students is the HDFC Study Loan.
This blog explains everything about the HDFC study loan in simple language—features, eligibility, documents, how to apply, interest rates, EMI examples, repayment, and useful tips.
⭐ What is HDFC Study Loan?
HDFC study loan is a type of education loan offered to students who want to study in India or abroad. This loan helps students pay tuition fees, hostel charges, travel expenses, books, laptops, exam fees, and other study-related costs.
The loan is available for:
- Undergraduate courses
- Postgraduate courses
- Professional degrees
- Job-oriented courses
- Diploma courses (in approved institutes)
HDFC offers different loan amounts based on the course, university, income of the co-applicant, and whether collateral is available.
⭐ Key Features of HDFC Study Loan
Here are the most important features explained simply:
1. High Loan Amount
- Students can get a loan of up to ₹1.5 crore depending on course and eligibility.
- For selected top institutes, students can even get no-collateral loans up to ₹50 lakh.
2. Flexible Repayment Period
- Repayment tenure can go up to 15 years, which makes EMIs smaller and easier to manage.
3. Moratorium Period (Relaxation Period)
- Students do not need to start paying EMIs immediately.
- The loan allows time to complete the course + 6–12 months before repayment begins.
4. Covers All Education Expenses
Loan covers:
- Tuition fees
- Hostel charges
- Travel expenses (for foreign study)
- Books, laptops, equipment
- Exam fees
- Project work
- Cost of study tours
5. Simple and Fast Processing
- Minimum documentation
- Quick approval
- Online and offline application options
6. Tax Benefits
- Interest paid on study loan is eligible for tax deductions under Section 80E.
⭐ Eligibility for HDFC Study Loan
Students need to meet some basic conditions:
- Indian citizen
- Age: 16–35 years
- Must have secured admission to a recognized university
- A co-applicant is required (parent, guardian, or spouse)
- Co-applicant must have a stable income
- Good academic record increases chances of approval
⭐ Courses and Institutes Covered
The loan can be taken for studies in India or abroad.
Courses Covered
- Engineering
- Medicine
- Management (MBA)
- Arts & Humanities
- Hotel Management
- Aviation
- Law
- Science
- Professional diploma courses
Institutes Covered
- UGC-approved universities
- AICTE-approved colleges
- Government recognized colleges
- Accredited private universities
- Top foreign universities in countries like USA, UK, Australia, Canada, Germany, etc.
⭐ Documents Required for the Loan
Documentation is simple. Here is the checklist:
1. Student Documents
- Admission letter
- Mark sheets (10th, 12th, graduation)
- Entrance exam scorecards
- Identity proof
- Address proof
- Passport & visa (for foreign study)
2. Co-Applicant Documents
- PAN card
- Address proof
- Income proof (salary slips or ITR)
- Bank statements
- Employment details
3. Collateral Documents (only if required)
- Property documents
- Fixed deposit certificates
- Government security certificates
⭐ Interest Rate, Fees, and Charges
Interest rates depend on the course, loan amount, and the co-applicant’s credit profile.
Interest Rate
Starting from approx. 10.5% per year
Processing Fee
- Up to ₹7.5 lakh → No processing fee
- Above ₹7.5 lakh → Around 1% of loan amount
Prepayment Charges
- Usually zero, which means you can repay early without penalty.
⭐ EMI Calculation Examples
To help you understand how much you may need to pay every month, here are some simple examples.
📌 Example 1: Loan Amount ₹10,00,000
- Interest rate: 10.5%
- Tenure: 10 years
Step-by-Step EMI Calculation
Formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]
Where:
P = Loan amount
R = Monthly interest = 10.5% / 12 = 0.875% = 0.00875
N = Tenure in months = 10 x 12 = 120
Using the formula:
EMI ≈ ₹13,493 per month
Total amount paid
₹13,493 × 120 = ₹16,19,160
Total interest paid
₹16,19,160 – ₹10,00,000 = ₹6,19,160
✔ Easy to manage EMIs
✔ Long tenure makes repayment comfortable
📌 Example 2: No-Collateral Loan of ₹25,00,000 for Abroad Study
- Interest rate: 11%
- Tenure: 15 years
Approx EMI = ₹28,171 per month
Total amount paid
₹28,171 × 180 = ₹50,70,780
Total interest
₹50,70,780 – ₹25,00,000 = ₹25,70,780
Even though EMI is comfortable, the interest becomes higher because the tenure is long.
📌 Example 3: If you prepay early
Let’s say you took:
Loan → ₹10,00,000
Tenure → 10 years
EMI → ₹13,493
But you pay off completely in 5 years.
Interest saved
- Total interest in 10 years → ₹6,19,160
- Total interest in 5 years → approx. ₹3,06,000
You save around ₹3,13,000 by paying early.
⭐ How to Apply for HDFC Study Loan
Applying is easy. You can follow these steps:
1. Check Eligibility
Confirm that you meet the age, course, and admission requirements.
2. Prepare All Documents
Keep your documents (academic + identity + income proof) ready so that the process becomes faster.
3. Apply Online or Visit the Branch
You can choose either:
- Online application through the official website
- Visiting the nearest branch
Both options are available and simple.
4. Loan Discussion
A bank representative will discuss:
- Loan amount
- Collateral (if needed)
- Co-applicant income
- Course details
- Fee structure
Try to provide all information clearly.
5. Loan Approval
Once your documents are verified and eligibility is confirmed, your loan is approved.
Approval time can range between 2 to 7 working days depending on the case.
6. Loan Disbursement
Loan amount is directly transferred to the college or university as per their fee schedule.
If you’re going abroad, travel expenses or other amounts may be transferred to your bank account.
⭐ Important Tips to Improve Loan Approval Chances
✔ Maintain a good academic record
Better marks increase chances of approval.
✔ Strong co-applicant income
If the co-applicant earns better, the bank is more confident about repayments.
✔ Keep documents organized
Missing documents can delay approval.
✔ Choose recognized institutions
High-ranking institutes boost loan eligibility and reduce interest rates.
✔ Avoid unnecessary loan amounts
Borrow only what you need. It reduces EMI stress and interest amount.
⭐ What Expenses Does HDFC Study Loan Cover?
Here is a list of common expenses that the loan covers:
- Tuition fees
- Library and laboratory fees
- Books and equipment
- Laptop (if required for the course)
- Hostel or accommodation charges
- Travel cost for studying abroad
- Examination and project fees
- Insurance premium (if opted)
This makes the loan suitable for almost all types of educational needs.
⭐ Benefits of Taking HDFC Study Loan
1. Reduces the financial burden on parents
Instead of paying huge fees at once, students can repay gradually after starting a job.
2. Builds financial responsibility
Students learn to manage EMIs and their financial life from an early age.
3. Helps in studying abroad
The loan can cover travel, accommodation, visa expenses, and tuition fees.
4. Improves future opportunities
With good education in a reputed institution, job chances are higher.
5. Tax benefits reduce total cost
Interest paid can be deducted from taxable income.
⭐ Simple Example of Tax Benefit (Section 80E)
Suppose you pay ₹1,00,000 interest in a year.
And your taxable income is ₹6,00,000.
With Section 80E deduction:
New taxable income = ₹6,00,000 – ₹1,00,000 = ₹5,00,000
If your tax rate is 10%, you save:
₹10,000 in tax.
This reduces your overall loan cost.
⭐ Who Should Consider HDFC Study Loan?
HDFC study loan is ideal for:
- Students who want to study in top-ranked institutions
- Students planning to study in foreign countries
- Families who prefer long repayment options
- Students looking for fast loan approvals
- Students who want larger loan amounts without heavy paperwork
Also Read: How to Buy Laptop Through Education Loan: Step-by-Step Guide
⭐ Final Thoughts
HDFC study loan is a strong financial support system for students who dream of higher education but face financial limitations. With flexible loan options, comfortable tenure up to 15 years, no-collateral option for selected institutes, and tax benefits, this loan is a great choice for many students.
However, students should carefully calculate EMIs, choose a suitable tenure, and borrow only what is necessary. Proper planning ensures that the loan becomes helpful instead of stressful.