HDFC Credila Loan Against Property Eligibility

HDFC Credila is a product specially created by HDFC bank for the benefit of students. HDFC Credila is a form of loan against property which can be used to fund the education for students. The loan can be applied for the purpose of education in India, USA or UK. There are different kinds of eligibilities and facilities according to the place where the applicant would be taking admissions.

Below are some features of a loan against property.

1. Interest Rate: The rate of Interest offered generally for Credila Loan against property is a floating rate of Interest calculated annually based on the CBLR(Credila's Benchmark Lending rate). The CBLR starts from 12.55%. The actual rate of Interest is then calculated based on your eligibility, loan amount, tenure etc.
2. Tenure: The tenure for Credila Loan against property is made up of duration of study, grace period and repayment period. The tenure usually depends upon the amount, eligibility and other criteria of the applicant. The maximum tenure offered by HDFC Credila is 12 years.
3. Purpose: The purpose of the loan should be purely for finding the education of a student. It can be for any kind of expense related to their studies.
4. Amount: The loan amount includes thetuition fees for the student, the living expenses(whether in India or overseas),HDFC Credila offers loans up to 25,00,000.
5. Disbursement: The loan amount will be automatically disbursed to education institute through an authorised server or directly. The amount might be disbursed in instalments instead of in a lump sum. Repayment starts right from the month the loan has been disbursed.
6. Processing Fee: The processing fee is generally high, up to 1.5% of the loan amount.
7. Pre-payment: Pre-payment of the loan is allowed only after 6 months of disbursal and regular EMI payments. You might incur pre-payment charges as mentioned by the bank 

The eligibility criteria for HDFC Credila loan against property is a little different from other banks given its unique purpose.

Below are the eligibility criteria for HDFC Credila:

• Along with the applicant, who will be the student receiving the benefits, a co-applicant who can support the Education Loan.
• Both the applicant and co-applicant must be citizens of India.
• The co-applicant supporting the loan should have a regular minimum income so as to ensure repayment.
• Co-applicant can be any immediate relative like mother/father/ brother/sister/spouse. Only immediate relatives' incomes can be counted as eligible for the loan.
• Applicant must be between 16 to 35 years of age( student).
• Applicant and co-applicant should meet other eligibility criteria as specified by the bank. They also need to provide the collateral for the loan. As this loan is against property, any kind of property needs to be provided as security for the loan.
• Properties like Residential flats, houses, non-agricultural lands, fixed deposit etc can be provided as collateral. This collateral can also be provided through extended relatives.
• In any case, the relationship between the co-applicant and the applicant needs to be documented on paper.

HDFC Bank is a very popular customer-centric bank in the private sector in India. HDFC Bank was established in 1994 and the bank achieved commercial scheduled status in 1995.HDFC bank is one of India's largest leading private sector bank. It offers services like banking, retail banking, different types of loans, credit cards, debit cards etc. As of today, HDFC bank has established 5130 branches across all major cities in India.

• Property Value: The loan against property depends on the status and market value of your property. A certain percentage of the property is provided as loan by the bank depending on your requirement, income eligibility and tenure. The property needs to be error-free and as per market standards. The property can be a self-owned residential flat, house, commercial property, rental property etc. The property should be in a good state and have a good value.
• Tuition expenses: The amount of fees charged by the institution is a deciding factor in your eligibility along with the property value. The tuition and living expenses should be well within the property value range so that you can avail the loan easily. The higher amount of your tuition, the greater might be your rate of interest.
• Co-applicant's income: HDFC Credila Loan against property requires a co-applicant who can support your education loan. This means that the co-applicants income needs to be within the eligibility criteria mentioned by the HDFC bank. The co-applicant can be an immediate family member such as parent, sibling or spouse. The co-applicant should also have a good credit score and eligibility. Self-employed or salaried professionals are both allowed to be co-applicants.
• Property Insurance: An insured property heavily reduces the risk involved in the loan against property application. This is because the property will be held as a mortgage with the bank. This means, in an unfortunate circumstance, where the property is damaged, the insurance can still cover the costs of the repayment of the loan for it. Dir to this, the bank generally prefers an insured property to an uninsured one

• No need to sell property: Availing a home loan means the property isn't completely owned by you until the end of tenure of the loan. However, in case of loan against property, you can be assured of the property being owned by you and temporarily under mortgage. The amount of loan, is, therefore, only a certain percentage of the property's market value. This is a better way to avail finds instead of having to sell the property and lose a great asset.
• Get all your requirements funded: With loan against property, you are free to utilise the funds in any way such as even for fulfilling the expenses of the applications and document related purposes. Visa charges can also covered using the Credila loan against property. The major expenses of living and tuition fees are completely covered under the Credila loan against property.
• Easy application: Loan applications have become very simple these days as you no longer have to wait in line at the bank for applying for your home loan. The loan against property can be applied through HDFC's online portal, specially created for this purpose. This makes it very easy for the applicant to apply for the loan from the comfort of their own home. HDFC also provides customer executives who can come to your house and get the application filled from you. They will later contact you for the further steps.
• Quick disbursal: If the documentation and application are proper and there are no issues with your application, the loan can be disbursed very quickly, sometimes within 48 hours. A lot of factors like credit score, income eligibility, place of study, etc will also affect the dismissal time. However, loan against property has very quick dismissal times.

Similar to home loans, for acquiring loan against property, there are certain documents that have to be provided along with the application form. Some of these documents are mandatory and failure to provide can mean rejection of the application. Below are some documents that are required for a loan against property.

• The application form filled with all the relevant fields and 2 photographs attached.
• Identity Proof: Mandatory documents to verify the applicant's identity. Any of the following is accepted: PAN Card, Aadhar Card, Driving license, Passport.
• Proof of residence: Mandatory documents to verify the applicant's address. Any of the following is accepted: Aadhar Card, Passport, Utility Bills(Gas Bill, Electricity Bill), Bank account statement etc.
• Documents for the student:
• The student will need to provide proof of education so far:
  • 12th Standard Marksheet/Certificate/Leaving Certificate.
  • In case the student has completed any degree, the related completion certificate, degree.
  • Entrance exam certificates for CAT, CET, MBA and any other entrance exams.
  • Proof of admission to the institution mentioned. (if available). The loan can be approved even before the admission is finalized in certain cases
  • Documents for salaried co-applicants
  • Proof of income for last 6 months such as salary slips or bank account statement of 6 months showing salary credited to account.
  • IT-returns or Form-16 for the past 2 years.
  • Documents for self-employed co-applicants :
  • Proof of Business existence (Company details, company address etc)
  • Proof of income from business for last 2 years
  • Profit and loss sheets of business for last 2 years.
  • Income tax or TAN details and papers for last 2 years
  • Original property deeds such as conveyance, sales deed, property tax receipt, construction permit etc.
  • Rental receipt in case of Lease rental discounting.
  • In case of any existing loans, proof of the EMI's being paid.