HDFC Credila Education Loan EMI Calculator

HDFC Credila, a part of the HDFC Group specialises in Education Loan. It is the first Company in the country dedicated to Education Loan. Education Loan plays a pivotal loan in the present knowledge economy. You get empowerment to reach greater heights in your career and also respect in the society you live in.  Students should not be deprived of this empowerment due to a lack of finance to fund higher education. HDFC Credila has understood this aspect and has done an in-depth study of the requirement of the students who desire to pursue higher education either inland or abroad and have remained focused on these requirements.

In present times, education expense has grown leaps and bounds and is one of the highest expenditures for an India household. HDFC Credila wants to facilitate this expenditure by giving Education Loans without any margin and with a flexible repayment period. The loans are customised depending on the requirement and also gives approval even before the admission to any university. This pre-approval serves as a source of income for obtaining I 20 for pursuing higher education in the USA.

HDFC Credila Education Loan has been instrumental in fulfilling the dream of students to pursue higher education in a University of their choice.

EMI, i.e., equated monthly instalment, is a fixed amount that a borrower has to make to the lender on a specific date in a calendar month. With the EMI, a part of the principal and interest will be paid off in order to clear the entire dues within a specified period. In the case of HDFC Credila Education Loan, where the repayment period is long term, i.e., up to 12 years, the EMI will be a long-term commitment and hence has to be prudently chosen. You should be able to service the loan regularly once the repayment starts. For EMIs that are overdue, a penalty will be charged.

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HDFC Credila provides Education Loan for pursuing higher stands both inland and abroad. Here are the features of the loan:

Note: Check the HDFC personal loan interest rates and apply for HDFC Personal Loan online with us.

HDFC Credila rate of interest is linked to Credila Benchmark Lending Rate (CBLR), which is 12.55%. The rate of interest will be CBLR plus a spread, which is decided on a case to case basis. The EMI chart drawn below will be for CBLR since the spread varies.

The lowest EMI for 1,00,000 assuming that the rate of interest is 12.55% is 1,347. The repayment of interest commences immediately after the first disbursement. So when the repayment commences, the outstanding loan amount will be only the principal amount. The total repayment period, which constitutes the course period, the grace period and the actual repayment period is 12 years.

Contact HDFC Credila to get details of the grace period. Since the details regarding the course period and the grace period are not available, the EMI is calculated up to a maximum period of 12 years.

EMI Calculator is a financial tool that is designed to be simple and accessible to calculate the EMI for a loan. The EMI will be arrived at using the variables like loan amount, loan tenure, and the rate of interest.

Formula for EMI Calculation:

P*r* (1+r) ^n/([(1+r) ^n]-1)

P stands for Principal

R stands for rate of interest

N stands for the loan tenure

To avoid the complexities that you face while calculating the EMI manually by applying the above formula, the EMI Calculator has been designed. Just by providing the inputs required, the EMI Calculator will do the strenuous job of calculating the EMI and will provide you with the value within seconds. Manually arrived results may not be precise, but the results arrived at using the EMI calculator will be 100% accurate.

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The simple and user-friendly EMI Calculator of MyMoneyMantra can be accessed anytime, anywhere, and by anybody. To calculate the EMI using the MyMoneyMantra EMI Calculator, you have to follow a simple procedure.

On accessing the website of MyMoneyMantra, you will come across the Financial Tools tab. Click on the dropdown menu of the Financial Tools tab, and a list of calculators will be displayed. Choose the EMI calculator. Key in the data required, i.e., the loan amount, loan tenure, and the rate of interest. The EMI will be calculated instantly.

On arriving at the EMI value, a list of best quotes as per your eligibility and requirement will be displayed. Choose the best deal from the quotes and once this is done, you can apply for the loan through MyMoneyMantra.

The rate of interest is the most crucial factor that impacts the EMI to a great extent. A slight difference in the interest rate can make a lot of difference in the eligible loan amount and tenure. Comparing the rate of interest offers by various lenders and the implication on the loan amount and tenure is essential before applying for a loan to avoid future financial stress.

Before applying for an Education Loan, decide on the course that you are going to pursue and the university you wish to take up the course with. Get a fee structure for the loan along with the other expenses like the hotel fees, mess fees, travel expenses, etc. You will then get a fair idea about your requirements. Since HDFC Credila is providing a 100% loan and is not stipulating any margin, you will not have the trouble of arranging funds out of your own source. The loan tenure is a maximum period of 12 years, which constitutes the course period and the grace period. Ascertain the grace period from HDFC Credila and add up the course duration. The remaining period will be the repayment tenure. With all the parameters available, you can arrive at the EMI with the EMI Calculator.

• Time-saving: Save the complex manual calculation, which is time-consuming by calculating the EMI using the Education Loan EMI Calculator. You can get the result in a jiffy.
• Precise value: There may be errors in manual calculation, but with the EMI Calculator, you will get a 100% error-free value.
• Plan your budget: You can arrive at the desired EMI that will suit your pocket by trying various combinations. By choosing the right EMI, you will be avoiding future financial stress.
• Research for the best deal: With the EMI Calculator, there is an advantage of verifying the best quotes that will be made available as per your requirement and eligibility.

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The three parameters loan amount, loan tenure, and the rate of interest go hand in hand in determining the EMI:

Loan amount: HDFC Credila offers Education Loan according to the fee structure and other expenses that are required for pursuing a particular course from a particular university, the income and repayment capacity of the co-applicant, the scope of the course chosen, the risk associated with the proposal, and so on. Once the course expense is ascertained, you can assume that it will be the loan amount since HDFC Credila provides a 100% loan. You can arrive at the EMI with the loan amount by trying different combinations of loan tenure up to a maximum of 12 years.

Rate of interest: The rate of interest stipulated for HDFC  Credila Education Loan is a floating rate linked to Credila Benchmark Lending Rate. Every time there is a change in CBLR, the EMI will change.

Loan tenure: The repayment of the Education Loan will commence only after the course is complete and after the grace period that is offered the completion of the course. You can opt to start the repayment soon after the completion of the course. The interest disbursement will start soon after the first disbursement of the loan. If the repayment capacity has increased by the time the repayment starts or if the student secures employment soon after the completion of the course, you can go for a shorter repayment tenure. The EMI will be higher if the tenure is shorter, but the interest cost will reduce. However, if the repayment capacity has not changed, then you can go for longer tenure with a higher EMI.

Pre-payment: Pre-payments can be made if feasible even during the course period, which will bring down the principal balance to a large extent. Since the interest will be serviced during the moratorium period, the pre-payment amount will be adjusted towards the principal. The EMI for the reduced principal becomes affordable even if you choose to pay off the loan early with a shorter tenure.

On deciding the University and the course to pursue, you can get the fee structure and all other associated expenses. Since you cannot make any bargain on the expenses involved, you should manage your monthly income in such a way that the EMI can be accommodated. However, since the repayment of the Education Loan starts only after the course completion, you will have ample time to plan your budget. Assuming that the course duration is 4 years and the grace period is 1 year, you will get repayment tenure of 7 years, which will commence only after 5 years from the date of disbursement of the loan. Arrive at the EMI based on the total course expenditure, which will be the outstanding balance at the time of commencement of the repayment since the interest will be serviced as and when due and plan the budget accordingly.

Debt to Income Ratio is not stipulated by HDFC Credila since the Education Loan EMI is a future obligation that commences only after the completion of the course and the grace period, which will be decided on a case to case basis.

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The rate of interest applicable to HDFC Credila Education Loan is a floating rate that is linked to CBLR. The rate of interest will change every time the CBLR changes, and so does the EMI.

HDFC Credila allows pre-payment to the Education Loan even during the course period. This will bring down the principal balance considerably, which will enable fixing of a lower EMI when the actual repayment commences by choosing the maximum repayment tenure. If you are able to contribute towards a higher EMI, you can choose a shorter tenure and pay off the loan as early as possible.

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