HDFC Credila Education Loan

For students who are looking at higher studies in India or other countries like the USA, one of the biggest factors is finding the right source of funding. HDFC Credila is a dedicated Education Loan provider which offers several services to make Education Loans more beneficial for students as well as their parents. This company has gathered great experience in the realm of Education Loans and understands the growing expenses of education.

Today, HDFC Credila which is a part of HDFC Pvt Ltd. Has helped thousands of students enroll in more than 2500 universities in India and overseas. They have also enabled students to seek education in more than 38 countries. The strong base of 42 million students bears testimony to the fact that this is one of the most trusted financial institutions in the country today.

HDFC Credila Education Loan is designed to fund the expenses for higher education in India and overseas. These loans allow students to seek advice from experts who can help them find the most feasible solutions to fund tuition fees and other expenses associated with their education in India and in other countries as well.

Students can get up to 100% funding for all their requirements with this loan plan. No margin costs and flexible security options make this one of the easiest loan options available to fund education for aspiring students.

HDFC Credila Education Loan is loaded with several beneficial features.

Some of the highlights of this loan are as follows:

• Loans are delivered to your doorstep: One of the biggest advantages of this loan plan is that customers do not have to go to various banks and branches in order to get their loans. The application process is completely online. Once the application has been made, a customised loan plan is designed for the student. Documents are collected from your doorstep and submitted. This gives you the advantage of customised loan plans delivered to your doorstep.
• No margin required: You do not have to pay any margin towards your Credila Loan as you can get up to 100% funding for all your needs including tuition fees, visa application expenses, library fees, accommodation, and more, with these loans.
• You can get a loan even before applying for a university: A student may wish to pursue their education in various universities. However, most often, these choices are restricted by the availability of ample funds to pursue an education in these institutions. With HDFC Credila, students have the advantage of a loan plan that allows you to get funds even before you take admission in any university. That way, you can broaden your choices and increase your chances of getting admission into a university of your choice. This also makes it easier for students to get their visa processed. For instance, in order to get the I-20 for USA Visa, the availability of liquid funds is a must, which is enabled by HDFC Credila.
• Enjoy tax benefits: Parents availing these loans are eligible for tax benefits under Section 80E of the Income Tax Act. As per this section, it is possible to claim deductions on the interest paid towards a loan availed for study or education. This benefit is also extended to the co-applicant, who is usually a parent or family member of the borrower.
• Low-interest rates: In order to make these loans more affordable for students and their families, low rates of interest are available. The interest rate is based on the HDFC Credila Benchmark Lending Rate (CBLR), which is subject to change as per the market conditions. In order to ensure the easiest EMI options, the interest is calculated using the simple interest method. The interest rate is calculated as CBLR + spread. The current CBLR is 11% per annum. The spread is determined by various factors, including the profile of the applicant, the relationship with the bank, employability based on the type of course selected and several other factors.
• Flexible collateral options: In order to get the best possible loan amount with HDFC Credila, it is necessary to provide collateral against the loan. There are several types of collaterals that are accepted in order to process these Education Loans, including a residential house or flat, a non-agricultural land, or even an FD that is issued in favour of HDFC Credila. The documents required for the loan will depend upon the type of collateral offered.
• Easy repayment tenure: The repayment tenure of the loan is quite flexible with HDFC Credila. It includes the study period, the grace period provided after completion of the course, as well as, the tenure of the loan. With HDFC Credila, you can get repayment tenure of up to 12 years. This helps customers plan their monthly instalments as per convenience and the monthly budget available.
• Feasible loan amount: With HDFC Credila, the minimum loan amount that is provided is 1 Lakh. There is no fixed upper limit on the loan amount that is provided to customers. This amount is bases on the underwriting norms set by HDFC Credila and the credit history of the borrower and co-applicant. Credila has provided loans of over 25 Lakhs to customers to help them seek education in a university of their choice.
• Quick disbursement: The goal of all loans provided by HDFC Credila is ensuring that students and families get the assurance of having the funds required for their higher studies. This is enabled with a quick loan turnaround time. All you have to do is ensure that you provide all the necessary documents. To reduce any chances of errors and to make this process faster, customers receive complete assistance from experts at HDFC Credila. They will assist you from the time of application of the loan until disbursement to give you a hassle-free experience of getting the Education Loan that you need.

Also Check: HDFC Cibil Score

In order to qualify for an HDFC Credila Education Loan, the individual should fulfill the following eligibility criteria:

• The borrower as well as co-applicants should be an Indian citizen
• The co-borrowers should have a bank account in any bank within India with valid cheque writing facilities.
• Before the loan is disbursed, the applicant should have a confirmation of admission to any educational institution.
• Co-applicant(s) must be earning and based in India for Education Loan application
• Co-applicant(s) may be any of the following relatives, and the income of such co-applicant would be considered for determining the loan eligibility as per HDFC Credila's credit and underwriting norms:
  • Father
  • Mother
  • Brother
  • Sister (married)
  • Spouse
• Co-applicant's liability will be co-extensive with the student
• Co-applicant(s) have to provide documentary proof to prove their relationship with the student, for the satisfaction of HDFC Credila.
• If the to-be-mortgaged collateral is not provided by any of the above relatives, then it could be provided by any of the following relatives and such relatives shall be brought into the arrangement as co-applicant(s):
  • Father-in-law
  • Mother-in-law
  • Sister-in-law
  • Brother-in-law
  • Maternal or Paternal Uncle or Aunt
  • Grandparents
  • First Cousins

To apply for a loan with HDFC Credila, a detailed documentation process must be completed.

The documents required are as follows:

• Fully filled application form which can be downloaded on hdfccedila.com
• Two passport-sized photographs, one to stick on the application form and one to affix to the application form as mentioned.
• Photo ID proof of applicant and co-applicant - Any of the following
  • Voter's ID
  • PAN Card
  • Passport
  • Driver's License
  • Adhaar Card
• Residence proof - Any of the following
  • Passport
  • Driver's License
  • Adhaar Card
  • Voter's ID
• Student's academic documents - As applicable
  • 12th Marksheet/Certificate
  • Certificate/Marksheet of subsequent years of education, for e.g., BE, BSc, BCom, etc.
  • Marksheet of any Entrance Exam given by the student, e.g., CAT, CET, etc.
  • Marksheets of GRE/ GMAT/ IELTS/ TOEFL, etc.
  • Scholarship documents
  • Admission proof (if available) - The Printed Admission Letter should be provided from the Institute (where admission is taken) on its letterhead with Institute's address.
  • Last 8 months bank statements of the co-applicant. If they have more than one bank account, copies of all must be provided. Statements of the Bank Account where their salary/ business/ professional receipts are credited each month should also be included.
• Income proof of the co-applicant:
  • For salaried employees
  • Salary Slips/ Certificate of last 3 years on employer's letterhead
  • Form 16 of last 2 years from employer/ IT returns of last 2 years
  • Any other income proof document which is not mentioned above
  • For Self-employed or professionals
  • IT returns of last 2 years
  • Certified Financial Statements or Provisional Financial Statements of last 2 years that are certified by a CA.
  • Proof of office - Title Deed/ Lease Deed/ Utility Bill, etc.
  • Any other income proof document which is not mentioned above
• In case the collateral provided is an immovable property (such as flat, house, non-agriculture land), the following documents are needed:
  • Property Title Deed
  • Registered Sale Agreement with Society Share Certificate
  • Original Registration receipt of the above documents
  • 7/12 extracts for land
  • Allotment Letter issued by Municipal Corporation/ Authorised Government Authority, like MHADA, CIDCO, HUDA, DDA, JDA, GIDC, etc.
  • Previous chain of any sale deed that establishes title
  • Latest maintenance bill provided by the society or the builder
  • Property tax bills with receipts
  • NOC for the mortgage from a builder or the society
  • The approved plan for the building
  • Encumbrance certificates

Additional Reading: Top Credit rating agencies in India

Make sure that you are able to determine the exact EMI for any loan before you apply for one. There are several expenses each month that you should be able to fulfill and still make timely repayments on your existing loans. There are ways in which you can calculate your EMI before you apply for the loan. One of the easiest ways to do so is by using MyMoneyMantra's EMI Calculator.

Although the standard formula is applicable in all banks, it is a complex one and there is always room for error. If you want to avoid the lengthy process of manual calculations, you can use an EMI Calculator that is available on MyMoneyMantra as well as HDFC Credila website. To get your accurate EMI, all you have to do is enter the loan amount, the tenure, and the rate of interest on the loan.

What to Check after Calculating EMI?

The objective of calculating the EMI is to ensure that it fits into your budget, allowing you to make timely payments. Any default in repayments leads to a lower credit score, which can hamper your chances of getting any financial assistance in the future. Therefore, once the EMI has been calculated, make sure you check all the mandatory expenses per month. Then subtract this from the net income to see if you have the necessary funds to make payments towards your EMI.

You can also check the potential tax benefits that you will be eligible for. Lastly, check for prepayment charges on these loans to see if you can clear the loan faster and save on the interest that you pay.

HDFC Credila charges a processing fee for all loan applications. This is known as an origination fee, which includes the charges towards CIBIL records, legal charges for collaterals, stamp duties, and stamp duties. These origination fees also include the property inspection fees, legal fees, etc. that are usually charged separately by other banking and finance institutions.

There are some important terms and conditions that you need fulfill in order to get an HDFC Credila Loan, as mentioned below:

• It is necessary to have a co-applicant who will support the application of the Education Loan
• The co-applicant must be a resident of India and should be related to the applicant. The co-applicant can be the mother, father, brother, sister (married) or spouse of the applicant. The income of the co-applicant will be considered in improving the eligibility for the loan application.
• The liability is extended to the co-applicant
• In case the collateral is not provided by the co-applicants mentioned above, it can be provided by the in-laws of the applicant, paternal or maternal aunt or uncle or the grandparents of the applicant.
• The loan amount is disbursed in INR
• The tuition fee is disbursed to the chosen institution directly. There are also some special agents who process the payment of the tuition fee from Credila to the educational institution.
• The tuition fee is disbursed in the form of instalments as required by the educational institution that the individual has applied for.
• The amount sanctioned for other expenses will be disbursed in the form of instalments that are spread over the duration of the course that the individual has opted for.
• All repayments towards the loan should be made in the form of INR
• The repayment of the interest towards the loan begins immediately after the first installment has been disbursed.
• Repayment is made through ECS and will be deducted from the account of the applicant automatically on the due date.
• Besides the application form, the applicant will not provide any other original documents in order to complete the application process. You only have to provide self-attested copies of all documents.

Also Check: CIBIL full form

HDFC offers a host of products to make it easier for customers to get timely finance and credit when required.

Here is a list of products and services offered by HDFC:

MyMoneyMantra is the easiest option for customers to access loans and other financial services from various institutions. The company brings several years of experience to the table to help customers choose plans that are perfectly suited to their financial requirements.

Here are some benefits of applying for HDFC Credila Loan through MyMoneyMantra:

• MyMoneyMantra simplifies the application process for loans and other financial aids that customers require. All you have to do is provide details like your name, gender, employment status, income, and loan requirement on the website. Based on the details provided, loan plans are customised for you. Once the loan plan is selected, all the procedures, including documentation, and submission of documents are taken care of by our representatives.
• You have access to an array of products provided by different financial institutions. This includes over 100 banks, NBFCs, and other types of lenders. This makes it easier for customers to read about different loan offers. That way, you can compare various plans before choosing one that is most suitable for you.
• With MyMoneyMantra, you have the advantage of complete financial assistance from experts who can help you manage your finances a lot better. In addition to this, there are 2,500 plus relationship managers all over the country who can help you with any queries or information that you may need on your loans.
• MyMoneyMantra has serviced more than 40 million customers in India alone and has received positive feedback for timely assistance and quick loan or credit approvals and application.
• MyMoneyMantra is known for providing the most innovative solutions to customers to get any financial assistance that they need. For this, we have received over 100 banking awards in different segments.
• MyMoneyMantra is accessible from almost any part of the country. Today, we have covered more than 500 cities and towns across India.

In order to apply for a loan through MyMoneyMantra, the steps are quite simple and straightforward. All you have to do is follow these steps to get the right financial aid for your requirements:

• Log on to the official MyMoneyMantra website
• Under Personal Loans, choose HDFC Credila Education Loan given on the right panel
• You will have to submit personal details such as your name, contact details, income, type of course selected, city of residence, etc.
• Once you have submitted the details accurately, you will be contacted by a representative from MyMoneyMantra.
• The documents will be collected and verified right at your doorstep
• When your documents are in place, the application will be submitted to the bank
• MyMoneyMantra will also help you with regular follow-ups and the entire disbursement process as well.

Additional Reading: Cibil Score Calculation

You can call the toll free number 1800 209 3636 for any queries that you have with respect to HDFC Credila. They also offer a live chat option on the official website.

For details about the loan, you can send the SMS "Credila" to 536363.