If you are on this page, you must be interested in HDFC Credila Education Loan. In this article, you will get complete information about the HDFC Credila Education Loan.
Overview of HDFC Credila Education Loan
The HDFC Credila Education Loan is India’s first financial service that funds students for higher education both in India and abroad.
Many students are looking for educational loan options to pursue their dream carrier. Understanding this need for the education loan, HDFC bank started a subsidiary as HDFC Credila in Feb 2006.
Did you know, HDFC Credila is a Non-Banking Financial Company (NBFC) that provides education loans for students to study in India and abroad. It’s India’s only NBFC that offers tax benefits.
- Since then, the Credila education loan has funded more than ₹10000 crores to many Indian students.
- Credila offers loans for more than 1000 courses in more than 2100 institutions in 35+ countries.
- HDFC Credila Financial Services Limited (HCFSL) has received an AAA rating from Investment Information and Credit Rating Agency (ICRA).
| Features | Details |
|---|---|
| Minimum Loan Amount | ₹ 1,00,000 |
| Maximum Loan Amount | Without collateral up to Rs. 45 Lakhs With collateral up to Rs. 1 Crore |
| Rate Of Interest (ROI) | Varies from 10.50% to 14% |
| Loan Tenure | 10 years |
| Maximum Loan Tenure | 12 years (in special cases) |
| HDFC Credila Processing Fee | 1 % to 1.25% of the total loan amount |
Expenses covered with HDFC Credila Education Loan
Most organizations that provide educational loans cover tuition fees and accommodations. So, it is important to check what expenses are covered under the particular loan.
Unlike other organizations, the HDFC Credila provides a 100 per cent education loan. It covers your total education cost, including tuition fees, accommodations (on-campus and off-campus), airfare, library and laboratory fees, purchasing books, equipment, instruments, uniforms, and purchase of computers or laptops.
HDFC Credila Eligibility
By now, you must have got some idea regarding the Credila Education Loan. If you are interested in Credila Education Loan and want to know if you are eligible for HDFC Credila Loan, then read the Credila Loan eligibility criteria.
Credila Loan eligibility criteria
- Applicant and Co-applicant must be a citizen of India.
- Co-borrower(s) must have a bank account in any bank in India with cheque writing facilities.
- Confirmed admission to the colleges before disbursement.
- Borrower and Co-applicant(s) to meet HDFC Credila’s credit and underwriting norms as applicable from time to time
Requirement fo Co-applicant
- Co-applicant(s) can be any of the following relatives: Father / Mother / Brother / Sister (married) /Spouse.
- Co-applicant must be earning and should be based in India.
- The income of the Co-applicant would determine the loan eligibility of HDFC Credila’s credit and underwriting norms.
- Document proof to establish the relation between Co-applicant and the applicant.
- Collateral must be provided by the Co-applicant.
- In case the collateral is not provided by the above-mentioned co-applicant, then Father-in-law; Mother-in-law; Sister-in-law; Brother-in-law; Maternal or Paternal Uncle or Aunt, Grandparents & First Cousins can also provide the collater, in the condition that they should be brought as co-applicant.
Supporting documents required for HDFC Credila Education Loan
Now if you are eligible for Credila Loan, then you must be wondering what documents you need. Here, I have mentioned all the supporting documents required for Credila Loan.
- Correctly filled and signed the Application form.
- Two passport size photos of Applicant and Co-applicant (one to be pasted and the other to be stapled)
- Id proofs of Applicant and Co-applicant. Any one of the following:
- Passport
- Driving License
- Aadhaar Card
- Voter’s ID Card
- Academic Documents of Student
- Marksheet/Certificate of 12th Exam
- Marksheet/Certificate of Subsequent Years of Education e.g. BE, BCom, BSc, etc.
- Marksheet of Any Entrance Exam Taken e.g. CAT, CET, etc. (If applicable)
- Scholarship Documents (if applicable)
- Admission Proof of the Applicant
- Bank Statements of Co-Applicant of Last 8 Months.
- Income Proof of Co-Applicant.
A. For a Salaried person- Latest 3 Salary Slips or Salary Certificate on Employer’s Letterhead
- Last 2 year’s Form 16 from Employer or the Last 2 Year’s Income Tax Returns
- Any Other Income Proof That is Not Reflected in the Above Documents
B. For Self Employed or Professional - Last 2 Year’s Income Tax Returns
- Last 2 Year Certified Financial Statements or Provisional Financial Statements Duly Certified by CA
- Proof Of Office (any one of the following, Lease Deed, Utility Bill, Title Deed, etc.)
- Any Other Income Proof That is Not Reflected in the Above Documents
- Collateral – Immovable Property (Flat, House, Non-Agriculture Land)
How to Apply for HDFC Credila Loan?
HDFC Credila has made it easy for students to apply for education loans. The application process for the loan is online, and all the supporting documents can be sent by mail. To apply for the HDFC Credila Loan, follow the following steps.
- Visit the HDFC Credila official website and fill out the Education Loan Application Form online.
- You can also download the form as a PDF file. Fill in the complete detail and send it to the address provided.
- Attach the supporting documents and send them by mail. If you send the application by post, a representative visits your house to collect the signed application form with the supporting documents.
- The credit team will review your application form.
- To complete the education loan disbursement formalities by signing the education loan agreement.
- The education loan amount is deposited in the required bank account electronically.
What is the HDFC Credila Interest Rate?
Credila education loan interest rate is usually high and varies with the student profile.
- The interest rate of HDFC Credila education loan without collateral ranges from 11% to 13%.
- However, the interest rate of the Credila loan with collateral is 0.5% to 1% lower compared to that without collateral.
Once you submit all your documents, the Credila team will decide your rate of interest.
Credila’s rate of interest depends on the following.
- Your academic profile
- Financial profile
- Your shortlisted universities
- On your repayment abilities
- Your & your co applicant’s previous credit history.
Is there any Tax benefit on interest paid on the Credila education loan?
The Credila education loan provides tax benefits under section 80(E). Under Sec 80(E) of the Income Tax Act, the loan borrower can avail of tax benefits on interest paid on the education loan.
Tax benefits are available for the Full-Time Courses for any graduate or postgraduate course in engineering, medicine, the management or for post-graduate courses in applied sciences or pure sciences including mathematics and statistics. From 1st April 2009, the deduction is allowed for vocational courses also.
What are the Pros and Cons of the HDFC Credila loan?
| Pros |
|---|
| No margin money |
| Tax benefit under Section 80(E) |
| No collateral up to 45 Lakhs |
| Good service and low turnaround time |
| Cons |
|---|
| High-interest rates |
| Processing Fees of 1% of the total loan amount |
| Very strict sanctioning |
| Available only in cities |
FAQ
For U.S. universities, you can apply for a Credila loan right after your Graduate Record Examinations (GRE) test, i.e. before you get admission. For countries other than the U.S., you can apply after you get admission to any University.
HDFC Credila is accepted by all the major study overseas destinations. Right from the USA, UK, Canada, Australia, New Zealand, to Germany. HDFC Credila is the only NBFC that is accepted by all the country’s embassies.
For any query, you can contact the HDFC Credila helpline number 1-800-209-3636 or mail at loan@hdfccredila.com
With HDFC Credila you can repay the loan amount through Electronic Clearing System(ECS). With ECS funds are debited from your account automatically every month. This makes the repayment hassle-free.
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