HDFC Bank Seeks to Sell its 100% Stake in HDFC Education

HDFC Bank Seeks to Sell its 100% Stake in HDFC Education

HDFC Bank is a private bank in India. It seeks to sell its entire ownership in HDFC Education and Development Service, i.e. 100% of its shares. This method is called the Swiss challenge, where they pick a buyer and then invite others to make better offers.

The document was filed on March 30. HDFC Bank said they had spoken to a potential buyer and signed a paper showing their interest. This paper sets the starting price for other potential buyers to beat and then chooses the best offer.

The Reserve Bank of India, the country’s central bank, had earlier allowed HDFC Bank to keep its shares in HDFC Education for two years after a merger. But now, HDFC Bank is ready to sell those shares. These shares are currently ₹1,447 each on the NSE, which is down by 15% this year and 10% over the past year.

Once the sale is finalized, HDFC Bank will provide more details about shares. Investors look encouraged about HDFC Bank’s future despite this move, believing that the bank's return on assets and loan growth will improve gradually.

What is the Maximum Amount of HDFC Education Loan?

The maximum amount of HDFC education loan might differ between Indian and foreign. Here below we explain this:

Indian Education:

• If you are between 16 and 35 years old and got into a college through an entrance test or based on your merit, you can apply.
• You'll need a co-applicant if you're going for a full-time course.
• Get up to Rs.150 lakhs as an education loan.
• Avail loans up to Rs. 50 lakh without collateral for select Institutes.
• If you get into a top university, you might get a better interest rate.
• You get up to 15 years to pay it back.
• The processing fee can be anywhere from Rs. 1000 to 1% of the loan amount.
• There are no hidden charges.
• The paperwork is simple.
• You can choose affordable monthly payments.
• And, you can get some tax benefits too.
• Plus, if your loan is less than Rs. 7.5 lakh, you don't need to give any deposit.

Foreign Education:

• Similar rules apply here – you must be between 16 and 35 and have a co-applicant for full-time courses.
• You can borrow up to Rs. 45 lakh.
• Again, if you're heading to a top university, you might get a better deal.
• You get a bit less time to pay back – up to 14 years.
• The process is straightforward, and there are no hidden charges.
• You still get those tax benefits.
• But for this one, you might need to provide a deposit, depending on the case.