Education Loan
Why You Should Take HDFC Credila Student Loan?
22 Feb 2019 4 min
Education Loan: Why You Should Take HDFC Credila Student Loan?

Credila Education Loan

HDFC Credila is a subsidiary of HDFC Ltd. Co. and India’s first dedicated education loan lender. With extensive research, specialized focus and in-depth understanding of student’s needs, HDFC Credila offers customized education loans to aspiring students who want to realize their dream of higher education in India and abroad.   

HDFC Credila Education Loan

HDFC Credila provides education loan in three categories:

  1. Loan for higher studies in India
  2. Loan for studies in the USA
  3. Loan for study abroad

Loan for higher education in India

With the rise in the cost of higher education, it is very difficult for the average middle-class Indian parents to afford their child’s education. Hence, HDFC Credila has come up with the following finance solutions to help you fulfill your education ambitions in the universities of your choice.

  • HDFC Credila has customized products for various courses, such as MS, MBBS, clinical research and full & Executive MBA programs and various different types of courses.
  • Education loan for AICTE and non-AICTE approved courses.
  • HDFC Credila offers an education loan to cover up to 100% of the course fees and also living costs in India. There is no upper limit of its loan amount.
  • You can apply for Credila education loan even before you get your admission confirmed.
  • The attractive benefits under Section 80-E of Income Tax Act make getting education loan a wise choice over personal finance of education.

Loan for studies in the USA

Most ambitious Indian students want to study in the USA. But planning for funds for studies in the USA is a critical part. This is when HDFC Credila can help you – from loan evaluation to providing loan sanctions and solvency letters. With HDFC Credila, you can evaluate the loan amount even before the admission is confirmed. This helps you estimate the amount predictably.

The features and benefits of HDFC loans for studies in the USA are:

  • HDFC Credila’s pre-admission loan evaluation and approval help you show proof of funds to universities.
  • No upper limit on the approved loan amount.
  • Every year, HDFC Credila funds thousands of students to study in the USA.
  • The bank offers unsecured education loan to selected courses in the US.
  • It also helps you transfer your money to your college/ university account in dollars.
  • The interest is charged only after the admission is confirmed and the loan is disbursed.

Higher studies in Abroad

Indian students are increasingly choosing to study abroad for post-graduation. Apart from the USA, India’s most popular destinations to study abroad are U.K., Australia, Germany, France, Singapore, Canada, and Dubai.

The cost to study in these countries varies according to course, duration, university and the cost of living in the country. HDFC Credila has customized loan solutions for each country to help bright students to pursue their higher education in these countries. The customized financing has made HDFC Credila education loan highly preferred loan provider of students studying in over 100+ institutes, across the globe.  

Credila Education Loan Eligibility Criteria

HDFC Credila primarily offers education loans to bright students who need funds to pursue higher education. However, Credila education loan eligibility varies from student to student based on their academic credentials and university/institution they have secured admission to. The following are the general education loan eligibility criteria from Credila:

  • Courses eligible for an education loan from HDFC Credila: Graduation and post-graduation course in the following disciplines -
  • Engineering
  • Medicine
  • Management
  • MCA and MCM
  • Hotel and Hospitality
  • Agriculture
  • The applicant must be an Indian citizen.
  • Age: Minimum age of the candidate for a student loan at the time of loan application should be 18 years.
  • A co-applicant(s).
  • Both the applicant and the co-applicant(s) should fulfill the credit and underwriting guidelines of HDFC Credila.

Co-Applicant’s Eligibility Requirement:

  • The co-applicant must be an immediate family member of the student such as father, mother, sister, brother, and spouse (if the candidate is married).
  • If the above-mentioned family members are not able to put up collateral, then the applicant's father-in-law, mother-in-law, first cousin, maternal or paternal uncle/aunt/ grandparents can provide collateral, if needed.
  • The co-applicant must submit a valid document to establish their relationship with the applicant.

Documents Required for HDFC Credila Education Loan

  • HDFC Credila’s completed and signed the application form
  • Two passport size photographs
  • Address Proof: Candidate and co-applicant (any one of the following)
    • Passport
    • PAN Card
    • Aadhaar Card
    • Driving License
    • Voter's ID Card
    • Latest Electricity/Telephone Bill
  • ID Proof: Candidate and Co-applicant (Any one of the following)

    • PAN Card
    • Aadhaar Card
    • Passport
    • Voter's ID Card
    • Driving License
    • Passport
  • Academic Documents :

    • HSC and SSC Marksheet/Certificate
    • Entrance exam Marksheets of GMAT/GRE/IELTS/TOEFL/CAT/CET (If applicable)
    • Scholarship Documents (If applicable)
    • Marksheet/Certificate of the last attended highest education
  • Admission Proof (If available):

  • Copy of confirmed admission letter from university or college
  • Co-Applicant's Bank Statement :

    • Last 12 months’ bank statement of the salary account or business receipts credited every month (If more than one account, provide the printed statements of all)

  • Co-Applicant's Income Documents :

  1. Salaried Employee –

  • Salary slips for the last three months and date of joining the letter
  • Form 16 for the last 2 years from the employer or last 2 years’ ITR certificate
  • Bank statement for the last 6 months
  1. (i) Self-Employed Co-Applicant(s) -

  • Last 2 years' Income Tax Returns/ Balance Sheet audited and certified by a CA
  • Bank statement for the last 8 months
  • Proof of business turnover

(ii) Self-Employed Professional -

  • Last 8 months’ bank statements
  • Qualification documents
  • ITR statement for the last 2 years
  • Audited Financial Statements for the last 2 years certified by CA

 

  • You can put up all the relevant documents of immovable property (Flat, House, Non-Agriculture Land) (from the following list) as collateral if required.
    • Title Deed of the property
    • Latest property tax receipt
    • Original property registration receipt
    • Allotment letter provided by Municipal Corporation/Government Authorities like MHADA, CIDCO, HUDO, DDA, JDA etc

Expenses Covered by HDFC Credila Student Loan

HDFC Credila offers all of the tuition fees determined by college/University and up to 100% of other expenses. The expenses covered by HDFC Credila education loan are:

  • Examination fee, library/laboratory fees
  • The entire tuition fee payable to the college/ university
  • Travelling expenses (restricted to one economy class return ticket between India and the country of study)
  • Living and hostel expenses
  • Purchase of computers/laptops considered necessary for completion of the course

Loan Amount

  • Minimum Loan Amount: Indian Rupees 1,00,000
  • Maximum Loan Amount: Credila doesn’t have an upper limit on the loan. The Maximum loan amount is subject to the case meeting HDFC Credila's credit and underwriting norms as applicable from time to time.

HDFC Credila interest rate

  • HDFC Credila offers floating interest rate linked to HDFC Credila’s Benchmark Lending Rate (CBLR).
  • Floating interest rate = (HDFC Credila’s CBLR + Spread)% per annum
  • HDFC Credila's current CBLR is 12.55% per annum

Note: Rate of interest is subject to change from time to time

Loan Re-payment Policy

  • Tenure of an education loan from HDFC Credila depends on:

  1. Study duration
  2. Grace period after the completion of education
  3. Repayment period
  • The maximum tenure offered by the HDFC Credial for a student loan is 12 years.
  • The loan term, however, depends on various factors, such as the age of the applicant, repayment capacity, future scope of the course, and age of co-applicant etc.
  • The repayment interest will start accruing immediately after the disbursement of the first loan installment.
  • The monthly repayment amount will be withdrawn from the candidate's/co-applicant’s bank account using ECS (Electronic Clearing System), after the completion of study & Grace period.

Collateral

Types of collateral that can be submitted:

  • Fixed Deposit
  • Residential House/ Apartment
  • Non-Agricultural Land

For more information about HDFC Credila Education Loan