https://www.wemakescholars.com/education-loan/hsbc-bank
HSBC Bank Education Loan
✓ Collateral and Non-collateral
✓ Education Loan @9.25%
Table of content
- HSBC Bank education loan products overview
- HSBC Overseas Education Loan
- HSBC Bank Higher Education Loan - India
- HSBC Bank Processing Fee
- Documents required for the HSBC Bank Higher Education Loan
- HSBC Bank Education Loan Insurance
- HSBC Bank Education Loan margin
- Education Loan Subsidy Schemes
- How to apply for an education loan from HSBC Bank:
- Why and how to transfer your education loan to HSBC bank
- HSBC Bank loan repayment process
- FAQ's
- 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 |
|
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 |
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. |
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 |
|
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:
2. Only resident citizens of India are eligible |
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
When applying for a loan with the help of HSBC, it is essential to attach the documents that are needed for the application. The required documents are categorized into four main groups: identity documents, address documents, age documents, and any other document that relates to finance. The identity of the customer can be proved through any document issued by the government including a passport, voter ID, or driving license. Identity proof entails documents that prove your identity such as a passport and residence proof entails documents that show your place of residence such as a utility bill. Some of the documents that may be used to produce proof of age include the birth certificate or the permanent account number card.
Parameter |
Details |
Valid proof of applicant's identity |
|
Address proof |
Any of the following are to be shown as address proof:
|
Proof of age |
|
Financial documents |
Salaried applicants:
Self-employed applicants:
|
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
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.
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.
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.
FAQs:
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What will happen if I miss my loan payment?
-
How many days does it take for an education loan to be sanctioned?
-
Are there any benefits to getting an education loan?
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Can we avail of any tax benefits on a student loan?
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Does 80E require any proof?
WeMakeScholars- supported by IT Ministry, Govt. of India.
Our Education Loan team will help you with any questions
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