About Credila Loan Against Property eligibility
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.
Loan against property
A loan against property is a type of loan wherein the property is already owned by the individual/group and they want to avail a loan against the property. That is, the property will be kept as collateral and a certain percentage of the property value can be availed as loan for various purposes by the applicant. The repayment is done as per any other loans with regular EMI's. The working of loan against property is similar to any home loan. The eligibility criteria is also similar.
HDFC Credila loan against property
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.
Eligibility for HDFC CredilaLoan against Property
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 deposits 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.
Features of HDFC Bank Credila loan against property
Below are some features of loan against property.
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.
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.
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.
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.
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.
The processing fee is generally high, up to 1.5% of the loan amount.
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
Factors affecting HDFC Credila Loan against property eligibility
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.
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.
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.
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
Benefits of taking HDFC Credila Loan against property
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.
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.
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.
Documents required for Loan Against Property
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 loan against property.
- 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.
Why should I apply for loan against property on MyMoneyMantra?
Nowadays, there is a variety of banks and financial institutions offering a wide variety of financial products and services. Many of these places also offer the option of loan against property with different eligibilities and features. It can be difficult for the applicant to check out all the various features and come to a decision regarding the same. Also, even in the case you have already finalized the bank and product, getting the formalities completed can be a big hassle
Third-party vendors exist to make this process a bit easier for the applicant. MyMoneyMantra is one such third-party vendor that enables its customers to sift through the ocean of financial products offered and choose the one that is most beneficial to them. MyMoneyMantra offers its services both online and through offline branches making it easily accessible to the customers.
Benefits of applying for a loan against property through MyMoneymantra
Below are some benefits of applying for a loan against property on MyMoneyMantra
- Get an accurate evaluation of the eligibility criteria as per your personal details, age, income etc.
- Get an accurate evaluation of your finances to have a clear idea about your financial strength and standing along with your liabilities.
- Expert guidance regarding credits and how to handle them.
- Professional support generating a credit report and a filter process to make sure that there are no errors in it
- Get an accurate comparison between different banks regarding features and benefits offered
- Professional guidance with choosing the best loan product suitable for you to pay long term
- Professional guidance for availing the best possible EMI for yourself
What is Loan against Property Calculator?
When the bank provides you with a loan against the property, you will have to repay it in the form of EMI's(Equated Monthly Instalments). The EMI is to be submitted to the bank every month and is calculated as per your loan amount, tenure and rate of interest. The bank calculates the EMI amount during your application process and determines whether you are capable of providing that amount every month from your income.
The formula for calculating the EMI is
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where p = principal amount
R= rate of Interest
N = Tenure in months
As you can see, calculating the EMI is a fairly complicated process, which is why most vendors provide a tool called loan against property calculator(EMI calculator) to simplify the process of calculating the EMI
Benefits of using loan against property calculator:
- Save yourself the trouble of doing complex calculations by yourself.
- Quick and easy way of getting your EMI calculated.
- Easy to use tool widely available all over the Internet
- No special knowledge required.
- Flexibility to change the tenure and amount to verify that the EMI is suitable for you
- Free service provided by MyMoneyMantra.
Why use a Loan Against Property Calculator?
The EMI calculation is one of the most important parts of your loan application process as you will have to pay this amount long term. You need to make sure that the EMI is comfortable enough so that you will be able to pay it every month. Moreover, the bank will also determine your eligibility as per your EMI, by verifying whether you have enough disposable income to cover your EMI amounts. For this reason, it is important to calculate your EMI beforehand so that you are sure of the loan amount and tenure you need.
As you saw above, the EMI calculation can be a complicated process. Fortunately, loan against property calculators are present to make the calculation easier for you. You just need to enter your loan amount, tenure and rate of Interest and hit calculate. The tool will return your instalment amount for you. Using the tool, you can check against different tenures and amounts to see which amount would be most suitable for you long term. Using the tool, you can also finalise the amount and tenure so you are confident in your application's worth.
How to use MyMoneyMantra Loan Against Property Calculator?
MyMoneyMantra is a third party vendor that provides you with expert guidance relating to all your financial needs. MyMoneyMantra provides you with professional support for availing a loan against property. As part of this goal, MyMoneyMantra also provides you with a loan against property calculator so that you can go through the process of calculating your EMI conveniently. The loan against property calculator is easily accessible through their website and can be used by anyone who wishes to avail the service. Below are the steps you can follow to use the MyMoneyMantra loan against property calculator.
- Go to MyMoneyMantra's website
- Scroll down the page and click on the Loan against property button you see. This will take you to the Loan against property section of the website.
- When the page loads, there is a questionnaire at the top that you are free to enter your details (such as your name, details, etc)
- On the loan against property page, you can scroll down to see a tab mentioned Loan against property calculator. You can click on it.
- This opens up the calculator on the page and you will see the inputs required. You need to enter the loan amount, tenure and rate of Inte4et and click on the calculate button. This will return the calculated EMI amount and also shows you the total interest you will be paying and the total amount of repayment.
- If you find that the EMI amount is not suitable for you, you can change the inputs(tenure and amount) accordingly and decide on the one that is best for you. Keep in mind that increasing the tenure can increase your total Interest paid as well.
- Using the loan against property calculator, you can be assured of your loan application being as secure and safe as possible for both you and the bank.
Frequently Asked Questions
What purpose can I use the HDFC Credila loan against property tor?
HDFC Credila loan against property can be used for the purpose of funding higher education for students. It covers the expenses of the tuition fees, living expenses and any other expense that might occur for their education in either India or overseas
What kind of property can I use for loan against property?
You can use any kind of property such as residential flat, housecommercial property, plot of land, non -agricultural site etc as the collateral for loan against property. The property should be owned by the applicant themselves.
How can I use the MyMoneyMantra loan against property calculator?
You can easily access the MyMoneyMantra loan against property calculator through their website. Just login to their website and click on the loan against property tab. In scrolling down, you will find the loan against property calculator just enter your loan amount, your rate of Interest and tenure and the tool will return the calculated EMI. You can use the tool further to check for different combinations of tenure and amount to see which one gives you the best possible EMI.
What are the charges for availing MyMoneyMantra's services?
MyMoneyMantra takes absolutely nothing from its customers. MyMoneyMantra's services are offered free of cost to the aspirants who seek professional guidance for their financial requirements
How long will it take to repay HDFC Credila loan against property?
The tenure of your HDFC Credila loan depends upon the duration of the education of the student, a grace period given and the repayment period. The total tenure depends upon the income eligibility loan amount and other eligibilities of the bank. The max tenure offered by HDFC bank is 12 years.
What are the benefits of a loan against property as opposed to personal loans?
Loan against property has a lower rate of interest as compared to personal loans as it is a secured loan. Also, being a secured loan, the chances of getting it approved and disbursed is higher as compared to Personal loans, which are usually unsecured. The amount availed through loan against property is also higher as compared to personal loans.
Can I sell the property while it is under the loan against property mortgage?
Yes, it is possible for you to sell the property even while it is under mortgage with the bank. The amount received can be used to pay off/foreclose the loan. There might become charges or penalties associated with pre-payment though