HSBC Bank Education Loan

✓ Collateral and Non-collateral

✓ Education Loan @9.25%

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Table of content

  1. HSBC Bank education loan products overview
  2. HSBC Overseas Education Loan
  3. HSBC Bank Higher Education Loan - India
  4. HSBC Bank Processing Fee
  5. Documents required for the HSBC Bank Higher Education Loan
  6. HSBC Bank Education Loan Insurance
  7. HSBC Bank Education Loan margin
  8. Education Loan Subsidy Schemes
  9. How to apply for an education loan from HSBC Bank:
  10. Why and how to transfer your education loan to HSBC bank
  11. HSBC Bank loan repayment process
  12. FAQ's
  13. Need Help? Ask Here!

HSBC offers education loans for higher studies abroad and in India for HSBC account holders. They offer abroad education loans through their overseas account services. They also offer personal loans for education purposes with interest rates starting from 9.54% p.a. Keep reading further to know more about the HSBC education loan.

HSBC Bank education loan products overview

Here, we are going to look at the two different education loan products offered by HSBC bank to finance higher education in institutes established both in Abroad and India

HSBC Bank education loan -India
HSBC Bank education loan -Abroad

HSBC Overseas Education Loan

Paremeter 

Details

Loan Limit

15 Lacs (Can receive up to 30 Lacs based on profile)

Expenses covered

    1. Cost of tuition fee
    2. Dorm/ Hostel fee 
    3. Examination fee
    4. Charges of library
    5. Charges for laboratory
    6. Expenses for travel
    7. Health insurance coverage for the applicant
    8. Caution fee
    9. Charges for Computer/ Books/ Uniform

Accepted co-applicant

Spouse, Parents, Parents- In- Law, Spouse, Siblings

HSBC Bank Education loan interest rate for non-collateralized education loan product

from 9.25% p.a. to 15.5% p.a

Moratorium Period

12 or 6 months after completing the course

Repayment Duration

Up to 5 years

Eligibility Criteria

    1. The applicant’s age should be in the range of:
    • For salaried applicants: 21-60
    • For self-employed applicants: 21-65
    • Only resident citizens of India are eligible

2. Only salaried or self-employed applicants are eligible.

3. The correspondence address of the applicant should be within India.

4. The applicant must hold an HSBC account that is active (current/ savings) and has been open for more than 3 months

5. NRIs cannot apply.

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HSBC Bank Higher Education Loan - India

Parameter 

Details

Loan Limit

15 Lacs (can get up to 30 Lacs based on internal credit policy)

Expenses covered

    1. Cost of tuition fee
    2. Dorm/ Hostel fee 
    3. Examination fee
    4. Charges of library
    5. Charges for laboratory
    6. Expenses for travel
    7. Health insurance coverage for the applicant
    8. Caution fee
    9. Charges for Computer/ Books/
    10. Uniform

Accepted co-applicant

Parents, Parents-in-law, spouse, sibling

HSBC Bank Education loan interest rate

from 9.25% p.a. to 15.5% p.a

Moratorium Period

12 or 6 months after completing the course

Repayment Duration

Upto 5 years

Eligibility Criteria

1. The applicant’s age should be in the range of:

    • For salaried applicants: 21-60
    • For self-employed applicants: 21-65

2. Only resident citizens of India are eligible
3. Only salaried or self-employed applicants are eligible.
4. The correspondence address of the applicant should be within India.
5. The applicant must hold an HSBC account that is active (current/ savings)and has been open for more than 3 months 
6. NRIs cannot apply.

HSBC Bank Processing Fee

HSBC charges up to 2% of the sanctioned loan amount which once deducted is non-refundable.

WeMakeScholars does not require you to pay a processing fee. WeMakeScholars is an organization that receives funding and backing from the Ministry of IT, Government of India, as part of the Digital India scheme. To put it simply, our services are available to you at no charge.

 

Documents required for the HSBC Bank Higher Education Loan

Parameter

Details

Valid proof of applicant's identity

    1. HSBC loan application form attached with one passport-size photograph.
    2. Passport of the applicant
    3. Voter ID of the applicant 
    4. Driving license (permanent)
    5. An Employee identification card issued by the government
    6. ID card provided by defense
    7. PAN card  
    8. Ration card
    9. Aadhar Card
    10. NREGA Job Card

Address proof

Any of the following are to be shown as address proof:

    1. Passport
    2. Election ID 
    3. Permanent driving license
    4. Gas bill
    5. Society outgoing bill
    6. Ration Card
    7. Water/telephone bill/electricity
    8. Property tax bill
    9. Domicile certificate with address issued by Municipal Corporation
    10. Registered rent or lease agreement

Proof of age

    1. Passport
    2. Driving license
    3. School leaving certificate 
    4. Birth certificate
    5. PAN card

Financial documents

Salaried applicants:

    1. Latest salary slip showing statutory deductions / Form 16 
    2. Account statements of the last 3 months (salary account)

Self-employed applicants:

    1. Profit and Loss account and Balance sheet (Audited and certified)
    2. Income tax returns filed for the last 2 years 
    3. Primary account bank statement for the past 6 months

 

To help you save time and prevent any potential sanction-related issues or delays, we can provide you with a personalized document checklist that considers your unique requirements and profile 

Ready to save time and avoid sanction issues? Get your own personalized document checklist today

HSBC Bank Education Loan Insurance

Loan insurance is mandatory for an education loan in HSBC bank which is about 1-2% of the loan amount. Loan insurance proves to be the most helpful to the co-applicant in case the co-applicant becomes unable to repay the loan due to disability or death 

 

HSBC Bank Education Loan margin

For example, if a student has applied for a loan of 75 Lacs and if the loan margin is 10%, then the loan margin becomes equal to 7.5 Lakhs.

We recognize that loan margins can greatly affect borrowing costs, and our goal is to assist students in obtaining the most favorable loan conditions and rates. you can reach out to us to know more about loan margins and ways to reduce them. 

Education Loan Subsidy Schemes

The Indian government will pay the interest due during the moratorium or grace period, which is equal to the length of the course plus 12 months, under these programs.

Padho Pardesh Scheme

Eligibility:

-The applicant is a member of a religious minority, such as a Muslim, Christian, Sikh, Buddhist, Jain, or Zoroastrian. 

-Their family's annual income is less than 6 Lakhs.

Central Scheme for Interest Subsidy for Economically Weaker Sections

Eligibility:

  • Should belong to EWS
  • The household income of the applicant is less than 4.5 lakhs.

Dr. Ambedkar Central Sector Scheme

Eligibility: 

  • The applicant comes from an economically backward class, and their total yearly household income is less than 8 lakhs.
  • The applicant is from the OBC class, and their family makes less than 8 lakhs per year.

How to apply for an education loan from HSBC Bank:

HSBC Bank Education Loan process (Offline)

Step 1: Visit the closest operating branch of the HSBC   

Step 2: Submit all the required documents at that branch 

Step 3: Your documents will be verified manually

Step 4: The loan amount will be sanctioned and disbursed after verification.

Online Education loan Application Process through WeMakeScholars

Step 1: Fill in the Common Application form for education loans available to you on our website 

Step 2: You will receive a call from one of our financial officers to acquire your basic details and check your eligibility for a student loan. Provide them with the required information.

Step 3: You will be thoroughly informed about all the lenders you are eligible to get a loan from depending on the policies of the bank and your eligibility. 

Step 4: Your financial officer will provide you with a document checklist using which you can submit the documents either directly to the bank or in WeMakeScholars’ secured document portal. 

Step 5: You will be logged in, the second you submit all the documents, the outcome of which will be provided to you within 2-6 days in private banks and 10-15 days in government banks.

Step 6: After your loan has been sanctioned, you can obtain your sanction letter and sign the loan agreement provided to you.

Issues while approaching the lenders directly:

  • A very long process
  •  Not technologically advanced 
  • Takes a very long time to process the loan 
  • You are not given a document checklist 
  • No scope for negotiation 
  • Lack of transparency
  • No idea about the other competitor products available in the market

Not having the proper knowledge or the tools needed to handle the lenders can result in you not getting to reap the maximum out of the loan you’re trying to get. Not knowing how to negotiate for lower interest rates, and not having a clear understanding of the loan process can cost you a lot more than you think.  

Perks of applying through WeMakeScholars

  • Negotiation on your behalf: Want a lower rate on your interest? We’ve got you covered. Here at WeMakeScholars our very talented team of financial officers will negotiate the rate of interest for you.
  • Best customer service/support: You can reach out to us about any query you have any time from 9 AM to 9 PM. We’ll help you out at any stage of your loan process. We are always just a phone call away.
  • The cashback offered: You will be rewarded with a cashback on multiple disbursements to a maximum of INR 3000, as you are supporting the Digital India campaign by applying for your study abroad education loan via WeMakeScholars. 
  • Digitized process of application: With WemakeScholars’ online application process you can apply for your education loan without having to take numerous trips to the bank.
Get the support you need to achieve your educational goals - Experience how easy getting an education loan can be

Why and how to transfer your education loan to HSBC bank

Why transfer your loan to HSBC Bank?

  • By transferring your loan, you not only save on the new education loan you’re applying for but you also get a lower interest rate on your existing loan.
  • WeMakeScholars is connected to most of the big public banks, private banks, and NBFCs the whole process becomes much simpler and much faster. 
  • We do the negotiation on your behalf, making the process a lot smoother for you.

How to transfer your loan to HSBC Bank?

  • Request for a callback from our team of financial officers  
  • Discuss the details of your pending loan with our financial officer 
  • You will be provided with a list of documents by your assigned financial officer.
  • Submit those documents to the bank to get your loan transferred. 

If you need help transferring your loan, our financial officers are always available to provide guidance and answer any questions.

Stop paying too much for your education loan - apply with WMS for a 0.5% reduction in ROI

HSBC Bank loan repayment process

The repayment in HSBC is based on the duration you chose. The repayment period and interest rate at the time of sanction will be used to compute the EMIs.

For instance, if the loan availed by the applicant was 15 Lakhs at a rate of interest of 10% and the period for repayment was 12 years, their EMI schedule would look something like this.

Repayment Cycle

EMI

Interest portion

Loan Outstanding

Principal portion

End of 1st year

21175

14153

7022

1691334

End of 2nd year

21175

13418

7758

1602359

End of 3rd year

21175

12605

8570

1504067

End of 4th year

21175

11708

9467

1395483

End of 5th year

21175

10717

10459

1275529

End of 6th year

21175

9621

11554

1143014

End of 7th year

21175

8412

12764

996623

End of 8th year

21175

7075

14100

834903

End of 9th year

21175

5599

15577

656248

End of 10th year

21175

3967

17208

458887

 

At WeMakeScholars, we are committed to providing comprehensive and reliable services to our users, and post-sanction help is just one of the many ways in which we strive to make the loan application process easier for you.

Allow us to guide you through the loan disbursement process with our post-sanction help.

Education Loan FAQs

  • What will happen if I miss my loan payment?

    As an education loan is a debt product that has an effect on your CIBIL score.

  • How many days does it take for an education loan to be sanctioned?

    It can usually take the bank around 1-2 months to process the entire loan depending on the loan amount. But we can make it happen in a span of 15 days! Request a callback from us to know more about loan processing.

  • Are there any benefits to getting an education loan?

    There are many benefits to getting an education loan such as Being able to afford higher quality education without worrying about the financing, you can build a strong credit score by making your EMI payments on time which ends up being an asset for you in the future.

  • Can we avail of any tax benefits on a student loan?

    Under section 80E of the income tax act, the interest paid for the education loan during the repayment tenure can be deducted as taxable.

  • Does 80E require any proof?

    Yes, A certification from the bank, financial institution, or charitable institute that authorized the loan is needed to claim tax deduction under the income tax act section 80E.

Our Education Loan team will help you with any questions

Ajay Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: