HDFC CREDILA EDUCATION LOAN: Do Indians dream for higher education? Yes, of course, Indians always excited to study in Aboard to develop their knowledge and to set a bright future. But some of them come from a middle-class family and they feel bad about their dream. Indian middle-class parents can’t afford a high amount of education costs for their children’s higher studies.
To support these types of situations in India, one of the best private sector banks is offering customized education loans for Indian students who are planning to pursue higher education in India or Aboard. The name of the private sector bank is Housing Development Finance Corporation Limited (HDFC), and it is established in 1994. HDFC Bank introduced a special loan for Indian students to study abroad known as Credila Education Loan. ALL Thanks to HDFC!
With this HDFC Credila Education Loan, students can pursue higher education with a 100% free tuition fee during the tenure of a course. HDFC Credila comprehends the education and admission process in India and different countries across the globe. Based on their ample research, HDFC Credila provides bespoke solutions to offer incomparable features and service standards.
Overview of HDFC Credila Education Loan
Here, you will find a complete overview of HDFC Education Loan like features, eligibility criteria, loan amount & security, costs covered, courses covered, interest rate, loan repayment policy, list of funding universities/institutions, and frequently asked questions. These links will help you to head over to that particular section in just seconds without scrolling anymore.
- HDFC Credila Education Loan – Features & Benefits
- Eligibility Criteria for HDFC Credila Education Loan
- HDFC Credila Education Loan – Courses Covered
- What Expenses are Covered in HDFC Credila Education Loan?
- HDFC Education Loan – Loan Amount and Security
- HDFC Credila Education Loan – Interest Rate
- Credila HDFC Education Loan – Rates & Fees
- HDFC Credila Education Loan – Repayment Rules
- HDFC Credila Education Loan – List of Education Institutes/ Universities Funded
- FAQs of HDFC Credila Education Loan
HDFC Credila has a wide range of rates based on the institute, co-borrower information, offered collateral security, and the academic background of the student. Also, refer to the below sections and know the detailed information like features, loan disbursements, repayment rules, rate of interest, required documents of HDFC Credila’s Education Loan.
Also Check: How to Get Education Loan From Other Banks?
However, HDFC Credila’s offers unique features and benefits for students looking to study in various countries like USA, Germany, Canada, etc. HDFC Credila understands that students need 60-70% of their education loan to be granted before the visa process for a country like Germany. If you see other Indian Banks, they won’t sanction any education loan before the visa process but this HDFC Credila Education Loan is the best solution. Students prefer the Credila HDFC Education Loan as their choice because it provides 2100+ institutes across 35+ countries to pursue higher education. Below are some of the benefits that you will find in HDFC Credila Education Loan.
- Loan amount around Rs 20 lakhs also available
- Doorstep service
- Up to 100% finance
- Less than 100% collateral
- 10 years maximum tenure for loan repayment
- More flexible for co-borrowers
- Attractive Interest Rates
- The quick and hassle-free loan process
- Before admission also HDFC sanction the education loan
- Loan against property mortgaged with HDFC Ltd
- Tax benefit under Section 80-E of Income-Tax Act, 1961
- Flexibility in collateral security requirements
- Borrowers and Co-applicant should be Indian Citizens.
- Age: Candidate minimum age at the time of loan application must be 18 years and maximum age should be 35 years.
- The applicant should have confirmed admission from a recognized institute/university.
- Both applicant and co-applicant(s) must fulfill the credit and underwriting guidelines of HDFC Credila.
- Co-applicants are necessary for full-time courses in India and abroad.
- The co-applicant must be a member of the immediate family.
Co-Applicant’s Eligibility Requirements for Credila Education Loan
- It is necessary to bring Indian based earning co-applicants to support the HDFC Credila Education Loan.
- Co-applicant can be any from the family, like Father/Mother/Brother/Sister (married)/ Spouse.
- Co-applicant’s responsibility is coextensive with the candidate.
- Co-applicants need to provide valid documentary proof to determine their relationship with the student, to satisfy the HDFC Credila.
- Type of collateral that co-applicants can submit are:
- Residential House/Flat
- Non-agricultural Land
- Fixed Deposit
Click Here to Know Best Banks Offering Education Loans for Students
Candidates who are applying for HDFC Credila Education Loan can only eligible to apply for the courses listed below.
Graduation & Post-graduation courses with any of the following disciplines are covered in this Credila HDFC Education Loan in India.
- Engineering (graduation only)
- Hotel and Hospitality
- Pure Science
Credila finances up to 100% of the education cost along with the loan amount above Rs 20 lakhs to the aspirants who are dreaming to do higher studies in India or abroad. The cost covered in HDFC Credila Education Loan is listed here, check it once:
- Living and hostel
- Examination Fees
- Library/laboratory Fees
- Purchase of books/ instruments/equipment’s/uniforms
- Purchase of Computers/ Laptops
- Travel Fare (economy ticket from India to the country of study)
- Rs. 1,00,000 is the minimum loan amount offered as a Credila Education Loan by HDFC Bank.
- Lifetime Maximum Loan Amount: There is no upper limit on the loan in HDFC Credila. Also, HDFC Credila process loans above Indian Rupees 25,00,000, as long as the case meeting HDFC Credila’s credit and underwriting rules as applicable from time to time.
- HDFC Credila allows a variety of interest rates for various borrowers based on academic background, institution, co-applicant information and provided collateral security.
- Education Loan for Studies in India: No collateral is needed to submit as security for loans up to Rs. 7.5 lakhs. Any loan amount more than RS. 7.5 lakhs would require collateral security in the form of residential properties, HDFC Bank Fixed Deposit, LIC, KVP policy or NSC.
- Education Laon for Study Abroad: No collateral is required to be presented as security for loans up to Rs. 4 lakhs. If the loan amount ranges from Rs 4 lakhs to Rs 7.5 lakhs need no collateral but a third-party guarantee. Any loan amount above Rs 7.5 lakhs required collateral security in the form of HDFC Bank Fixed Deposit, Residential properties, LIC, NSC or a KVP policy.
In the below points, we have covered about the rate of interest in HDFC Credila’s Education Loan.
- Interest Rate will be a floating rate of interest together with HDFC Credila’s Benchmark Lending Rate (CBLR)
- With the help of the Simple Interest Rate method, the interest will be calculated.
- Floating interest rate to be (HDFC Credila’s CBLR + Spread)% per annum.
- HDFC Credila’s current CBLR is 12.55% per annum (it differs from time to time).
- A circulate is determined on the case of risk profile that differs on account of several factors like student’s academic background, financial strength of the co-borrower, loan repayment capability, credit history, employability of the chosen course from a selected college and destination country, collateral offered or not, serviceability of the loan via HDFC Credila’s branch network, expenses associated with underwriting and servicing the loan, and more.
|Description of Charges||Education Loan|
|Loan processing charges||Up to 1.5% of the sanctioned amount|
|No objection certificate (NOC)||None|
|Duplicate of no dues certificate||None|
|Solvency certificate||Not applicable|
|Charges for late payment of EMI||2% per month of installment (MI/PMII) + applicable taxes|
|Credit assessment charges||None|
|Non-standard repayment charges||None|
|Cheque or ACH mandate or direct debit swapping charges||Up to Rs.500 per swap instance plus applicable taxes|
|Cheque/ACH/Direct debit bouncing charges||Rs. 400 per dishonor of cheque/ACH/Direct Debit return per presentation + applicable any taxes|
|Stamp duty and other statutory charges||As applicable by the laws of the state|
|Loan cancellation charges||1% of the unveiled sanctioned loan amount + applicable any taxes|
|Manual collection charges||Rs. 200 per visit plus applicable any taxes|
|Charges for updating and handling loan account as per customer request||Rs. 1,500 plus applicable any taxes|
|Document storage and retrieval charges||For no collateral: Rs. 2,000 plus applicable any taxes
For collateral: Rs. 4,000 plus applicable any taxes
Also Check: All About SBI Education Loan in India
- Loan interest re-payment will begin right away once the disbursement of the first loan installment.
- Tenure of HDFC Credila Education Loan repayment involves the following conditions:
- Duration of study
- Grace period after finishing the education
- Repayment period
- HDFC Credila Education Loan Product offers a maximum tenure of 12 years.
- However, the loan tenure based on factors such as repayment capacity, co-applicant age, the future scope of the course, and more.
- The monthly HDFC Credila Education loan repayment amount will be removed from the borrower/co-borrower bank account by Electronic Clearing System (ECS).
To avail HDFC Credila Education Loan, applicants should acquire particular documents to the officials. We have listed required documents for HDFC Credila Education Loan for candidates who want to study in India & Aboard.
- Filled and Signed HDFC Credila Education Loan Application Form
- Two Passport size photographs
Address & ID Proof Documents for Credila Education Loan
- PAN card
- Aadhaar card
- Voter ID
- Driving License
- Electricity/Telephone Bill
Academic Documents for HDFC Education Loan – Credila
- Marksheet/Certificate of SSC and HSC
- Subsequent Years of Education (For example, BE, BCom, BSc, etc.) Marksheet/Certificate
- Marksheet of any entrance exam (e.g. CAT CET, GRE, GMAT, TOFEL, IELTS, etc.) (if applicable)
- Documents of Scholarship (If applicable)
Admission Proof for Credila HDFC Education Loan
- Proof of printed admission letter from the university or institute along with an address.
Co-Applicant Bank Statements
- Ensure to include last 8 months bank statement of the business receipts or salary account credited every month (In case, if you have more than one bank account, provide all printed statement copies)
Income Proof of Co-Applicant
- In case of Salaried Employee:
- Recent 3 salary slips or salary certificate on Employer’s Letterhead
- Last two years ITR or Form 16 from the Employer.
- Any Other Income Proof which is not mirrored in the above documents.
- In case of Self Employed or Professional
- Past two years Income Tax Returns (ITR)
- Recent 2 years Certified Financial Statements or provisional Financial Statements Duly Certified by CA.
- Office Proof (anyone from the following list like Utility, Title Deed, Lease Deed, etc.
- Any Other Income Proof which is unreflective in the above documents.
If Collateral – Immovable Property (House, Flat, Non-Agriculture Land)
- Property Title Deed
- Registered sale agreement together with society share certificate
- Original Registration Receipt for the Registered sale agreement
- Allotment letter by the municipal corporation/ authorized govt. authority such as CIDCO, MHADA, etc. along with DDA, GIDC, HUDA, JDA, etc.
- Receipts of a latest property tax bill
- Recent Maintenance bill along with receipt released by society/builder.
- Last Chain of Sale Deed establishing title.
- NOC for a mortgage from society/builder
- Authorized building plan
- Document of EC as on date and more.
Note: Please provide an original completed application form and copies of the above-supporting documents to HDFC Credila while applying for the education loan. Also, remember that all the above-provided document copies should be self-attested.
Partial List of Education Institutes (Education Loan for Indian Education)
- Europe Asia Business School, Pune
- Garden City College, India
- IBS Business School
- Indian School of Business, India
- Indraprastha College of Management and Technology, Jodhpur
- ITM University, India
- MIEL e-Security
- National Management School
- NIIM-School of Business Administration
- Shiv Nadar University
- The Writers Block
- Welingkar Institute of Management Development & Research
- Foundation for Liberal And Management Education (FLAME), India
- G. R. Vidaydeep Business Management Academy, Bangalore, India
- Eastern Institute of Management, Kolkata
- IIM – Bangalore
- Indira Institute of Management, Pune, India
- International Academy of Management & Entrepreneurship (IAME), India
- NBA, India
- Manipal University
- National School Of Business
- SMOT School of Business, Chennai
- Sharda University, Delhi
- Vishwa Vishwani Institute of Systems and Management
Partial List of Universities (Education Loan for Aboard Studies)
- University Of Oxford
- INSEAD (France, Singapore)
- ESC Rennes School of Business (France)
- IE Business School – Spain
- HEC Paris (France)
- Rotterdam School of Management (Netherlands)
- S P Jain School of Global Management (Dubai)
- Coventry University (UK)
- National University of Singapore
- The University of Manchester (UK)
- Schulich School of Business, York University
- Nanyang Technological University (Singapore)
- Concordia University (Canada)
- Centennial College (Canada)
- The University of Sheffield (UK)
- Chemnitz University of Technology (Germany)
- Asian Institute of Management (Philippines)
- La Trobe University (Australia)
- Delft University of Technology ( Tu Delft ) (Netherlands)
- University of Warwick (UK)
- Sheffield Hallam University (UK)
- University of Leeds (UK)
- University of Melbourne (Australia)
- London Business School (UK)
- University of Glasgow (UK)
- University of Duisburg Essen (Germany)
- Newcastle University (UK)
- Srh Heidelberg University of Applied Science (Germany)
- Royal Melbourne Institute of Technology (RMIT) University (Australia)
- National University of Singapore (Singapore)
- The University of Nottingham (UK)
- London School of Economics and Political Science (UK)
- Rotman School of Management, University of Toronto (Canada)
1. Is there a tax benefit on the interest repayment on Credila HDFC Education Loan?
Ans: Yes, every HDFC Credila Education Loan applicant and co-applicant is eligible for Tax benefit under Section 80-E of the Income Tax Act, 1961.
2. How does a student eligible for an HDFC Education Loan for study abroad?
Ans: Indian citizens who have confirmed admission to a particular course covered in HDFC Credila from any reputed university abroad are eligible for an HDFC Credila Education Loan.
3. What would be HDFC Credila Rate of Interest, if I take Rs 3 lakhs as a loan?
Ans: HDFC Credila floating rate of interest ranges from 11 to 14.5%. The present interest rate of HDFC Credila is 12.55% and it varies from time to time.
4. What are the circumstances examined by HDFC Credila Education Loan while deciding on the student eligibility?
Ans: Below are the following factors HDFC Credila Education Loan consider while deciding on the student eligibility-
- Certificates of Academic background of the student.
- Which type of course and institution/university applied by the applicant for HDFC Credila Education Loan.
- Whether any collateral is being offered or not for the Credila Education Loan from HDFC and the type of collateral offered.
- If there is any co-borrower on the HDFC Student Education Loan and the co-borrower job profile etc.
5. Is HDFC offer a moratorium or holiday period for an Education Loan?
Ans: Yes, HDFC provides a moratorium or holiday period particularly the study period plus 1 year or 6 months once the student employs, such as before.
So, this is all about HDFC Education Loan (Credial). We hope this quality information regarding HDFC Credila Education Loan will help you a lot while looking to process any loans. If you have any queries regarding this guide or Credila HDFC Education Loan, shoot us in the comment box below and our dedicated team will get back to you asap. Also, you can refer to their official website @ www.hdfccredila.com