HDFC Education Loan Documents Required
Get the complete list of HDFC Education Loan Documents Required for instant in-principle approval online. You are required to submit an application form, passport-size photos, and copies of legal proofs of identity, residence, income, and admission, along with bank statements, property documents, and academic documents. The bank will share the effective HDFC Education Loan Interest Rate after verification of the submitted documents.
About HDFC Credila
HDFC Ltd has the reputation of being India's pioneering housing finance company. It also has the distinction of having provided the first Home Loan in India. Apart from housing finance, HDFC Ltd has varied business interests in the field of Banking, Insurance, Asset Management, Venture Capital, and Education Loans.
HDFC Credila, much like its parent company, is India's first dedicated Education Loan provider. The company focuses on providing the best Education Loan products in India, especially to students who wish to pursue higher education in India and abroad. HDFC Credila offers Education Loans to students from India to pursue higher education in more than 35 countries.
Benefits of HDFC Credila Education Loan
Several factors affect your SBI CIBIL score. If you want to improve your CIBIL score before applying for credit cards or SBI loan schemes, make sure you focus on these factors that will directly influence your loan approval chances in the future.
- Payment Behaviour: Your payment history plays a huge role in determining whether or not you are a responsible borrower. Make sure you pay your credit card bills, EMIs, and other bills on time. Late payments can have a huge impact on your SBI CIBIL score. Even a single late payment affects your credit score immensely. Set up reminders and alerts to make your payments timely every month.
- Credit Utilisation Ratio: Your credit utilisation ratio also has a huge role in your credit score. The amount of credit used in proportion to your credit limit reflects your credit utilisation ratio. Ideally, you should not exceed 30% of your credit limit to maintain a decent SBI credit score of 700 and above. For instance, if your credit limit is two lakh, make sure you do not spend more than 60,000 on a monthly basis.
- Making multiple loans or credit applications: If you go on to apply for multiple credit cards and loans in a short span of time, it will have a huge impact on your CIBIL score. Wait at least for a few months before applying for several loans or credit cards as per your requirements. After a CIBIL score calculation, you can easily determine whether you are eligible to apply for a loan or not.
- Not having a credit mix: It is important to maintain a balance of unsecured and secured loans to maintain a decent credit score. A credit card is considered to be an unsecured loan. At the same time, auto loans and home loans are considered to be secured loans. When you have a balance of both types of loans, it reflects your credibility and experience as a borrower.
- Length of your credit history: The duration of your credit history determines the length of your credit history. The total number of years you have spent as a borrower reflects your credit history. If you have a long and decent credit history, it shows that you have been making your payments on time. In addition, it helps you maintain a decent SBI CIBIL score that will convince the lender that you are a responsible borrower of loans and credit cards.
- Other financial obligations: If you already have multiple loans and credit card bills, other EMIs and bills to repay will affect your current SBI Cibil score.
HDFC Credila Education Loan - Benefits to Students and Parents
HDFC Credila offers the following benefits to the students as well as parents:
| Benefits for Students | Benefits for Parents |
| Makes the student independent by helping parents fund their education needs. | Finances higher education of the student up to 100%. |
| Facility to get the Education Loan approval before getting admission, thereby enabling to plan accordingly. | HDFC Credila is one of the most trustworthy Education Loan providers in the country. |
| The loan approval letter helps students to demonstrate sources of funds, thereby enabling the issuance of I-20 from US universities. It also helps them to meet the Visa requirements of other countries. | Education Loans make the student responsible, as well. Parents can hold back their savings and retirement benefits to cater to other emergencies in life. |
| Funds the total cost of education and living expenses in a foreign country. | Parents get tax benefits under Sec 80E of the IT Act for Education Loan interest repayment. |
| Dedicated Education Loan provider, thereby ensuring professional guidance. | HDFC Credila loans are the most convenient of all Education Loans. |
| One of the most accessible loans to apply for, as you can send an SMS 'CREDILA' to 53636. | The availability of collateral security enables parents and students to go for high-ticket loans. |
| Credila understands the requirements of students better than others. | Flexible repayment options reduce the strain on the parents. |
How to Apply for HDFC Credila Education Loan
HDFC Credila Education Loan can be applied for in the following ways:
- Online - HDFC Credila offers the facility for students to apply for an education loan online
- Offline - SMS 'CREDILA' to 53636 and wait for a call from the HDFC Credila representative, who will ably guide you through the application process. HDFC Credila representatives visit your residence to help you complete the application form and clarify your doubts.
- Visit - Visit the HDFC Credila office in your city to speak to the Relationship Manager directly and complete the application process.
Process of HDFC Credila Education Loan
Below is the detailed application process for HDFC Credila Education Loan:
| Responsibility | Action |
| Student | Complete the Education Loan application process online or send the SMS. |
| HDFC Credila | Follow up with the student and the parents to clear their doubts and provide valuable information. |
| HDFC Credila | The representative visits your home and collects the application form along with all supporting documents. |
| Student | Provide all the necessary details and supporting documents. |
| Parents | Prepare to offer collateral if required |
| HDFC Credila | Review the loan application and underwrite it |
| HDFC Credila | Seek additional information, especially if the loan involves the furnishing of security. |
| HDFC Credila | Approve the Education Loan after satisfying itself fully about the student's needs. |
| Student/Parents | Complete the execution of the Education Loan documents. |
| Parents | Complete the creation of security if HDFC Credila stipulates collateral. |
| Student | Inform Credila about the confirmation of admission and fee payment details. |
| HDFC Credila | Remit the fees directly to the educational institution. |
Documents Required for HDFC Credila Education Loan
The following documents are necessary for the processing of HDFC Credila Education Loan:
- Application form fully completed in all respects
- Two passport-sized photographs of student and the co-applicant - One photo to be pasted on the application form and the other stapled to it.
- KYC documents including identity and residence proof
- Proof of admission
- Academic qualifications
- Statement of bank accounts
- Financial statements to prove income generation and repayment capacity
- Property documents for providing collateral
| KYC Documents - ID Proof |
One document amongst the following list should suffice to establish the applicant's identity:
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| KYC Documents - Proof of Residence |
The following documents are necessary for proving your residential address (One should suffice):
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Both the applicant (student) and the co-applicant (the parent) should submit their respective KYC documents.
| Proof of Admission |
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| Academic Qualifications |
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| Financial Statements - Salaried Employee |
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| Financial Statements - Self-Employed Individual or Professional |
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| Property Documents - In the Case of the Stipulation of Collateral |
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Points to note
- Other than the loan application form, the applicants need not provide any original document to HDFC Credila at the time of applying for the loan.
- The applicants should self-attest the documents
HDFC Credila Vs. Other Education Loan Lenders
Here are some major differences between HDFC Credila and other education loan financiers:
| HDFC Credila Education Loan | Other Education Loan providers |
|---|---|
| Provides up to 100% finance for higher education. | Nationalised and other banks stipulate margin from 5% to 15% on Education Loans. |
| HDFC Credila provides doorstep service | Not all Education Loan providers do that |
| Loans available for more than 20 Lakhs | Some banks have restrictions on the loan amount |
| Extended repayment tenure up to 10 years | Some of the nationalised banks have a repayment tenure of 84 months. |
| Education Loans available even when there is less than 100% collateral. | Banks seek 100% collateral when sanctioning an education loan. |
| Loan sanction letter available before the student secures admission. | Banks do not have this flexibility. They demand confirmed acceptance before processing the Education Loan. |
| HDFC Credila has provisions to credit the loan amount to the savings account if the university demands the same (under specific circumstances after marking lien over the account). | Banks do not provide such facilities. However, other private Education Loan providers offer similar facilities to their clients. |
FAQs
HDFC Credila does not accept the second mortgage of the property mortgaged to other banks. The only way out is to transfer the Home Loan to HDFC Ltd. HDFC Ltd has provisions to take over the existing Home Loan and ensure that the company has an entire charge over the security. Thus, it covers Education Loan liability, as well.
HDFC Credila offers provisional sanction of the Education Loan to students before they secure admission to the university of their choice. It gives the student the confidence to proceed with the admission process vigorously. As explained earlier, HDFC Credila understands students and their plight better than other banks do. Secondly, a provisional sanction does not entail that HDFC Credila disburses the loan amount. It is an assurance that the student will get a confirmed sanction letter after securing admission.
Usually, HDFC Credila or any other bank does not grant further loans to NPA borrowers. However, if a borrower has a poor CIBIL score, HDFC Credila exercises caution by perusing the CIBIL report deeper to ascertain the cause of the poor credit score. If the reason is a continuous default in repayment, HDFC Credila does not sanction Education Loan. However, if it is for other purposes, it takes a call after verifying the value of security and the future employment prospects of the student. The interests of students are foremost for HDFC Credila.
Yes, there is no restriction for a parent to approach HDFC Credila for a second Education Loan for another child. As explained earlier, HDFC Credila values the student's educational achievements more than anything else. If the second child has the necessary credentials, HDFC Credila does not have any problems in sanctioning another Education Loan.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
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