HDFC Credila, a branch of HDFC Ltd., is India’s First Dedicated Education Loan Company. HDFC Credila Financial Services became India’s first dedicated education loan company by pioneering the concept of a specialized education loan lender. HDFC Credila’s primary aim is to offer Home Delivered Customized Education Loans, which are derived from a deep comprehension of the requirements of students wishing to pursue master’s degrees abroad. Do you want to learn more? All of your questions about the HDFC Credila education loan‘s interest rate, eligibility, covered expenses, and other specifics will be answered in this blog!
| Feature | Detail |
| Loan amount | Up to INR 65 Lakh |
| Rate of Interest | 10.25% – 12.75% |
| Processing fees | 0.5 – 1% |
| Processing time | 7-10 days |
| Margin Money* | Nil |
| Moratorium period* | Course duration + 1-year |
| Repayment Tenure | 15 years |
Tax Benefits By HDFC Credila
The only NBFC in India that provides Section 80E tax incentives for student loans is HDFC Credila. A person may deduct interest paid on student loans for up to eight years under Section 80E of the Income Tax Act, beginning in the year the loan’s repayment commences. It is possible to write off the interest paid on the loan. Remember that the Section 80E tax credit only applies to the interest portion of the student loan—not the principle.
When to Apply for the HDFC Credila Loan?
As soon as you finish your GRE, you can apply for an HDFC Credila Education Loan even before you are authorized. After your application with the institutions has begun, you will need to apply for nations other than the United States.
Remember that HDFC Credila accepts only a limited number of applications. To find out if you qualify for the HDFC Credila loan, you must apply as soon as possible.
What Loan Amount Does HDFC Credila Fund?
Your course, university, and financial profile all influence the loan amount.
Up to INR 45 lacs can be funded if you apply for an HDFC Credila unsecured education loan (no collateral required). They can extend the amount even more if you apply for a secured loan (with security).
What is HDFC Credila Rate of Interest?
The interest rates for HDFC Credila education loans vary depending on the profile. An education loan without collateral may have an overall HDFC Credila rate of interest between 10.5% and 14%. Your interest rate on the HDFC Credila education loan will be revealed to you once you have completed the loan application and sent in the necessary documentation. After that, the credit team will decide on the HDFC Credila interest rate.
A secured loan could have an HDFC Credila interest rate that is 0.5–1% less than an unsecured loan. The interest rate on your HDFC Credila education loan is simply an estimate and will depend on several criteria, including your co-borrowers credit history, your academic and financial records, the universities you have chosen, your ability to repay the loan, and other factors.
What Is The Moratorium Period For HDFC Credila?
The moratorium period has an impact on the HDFC Credila non-collateral loan’s principal amount. Six months after receiving your degree, or sooner if you start paying principal and interest right away, is when you can begin making principal and interest payments on your student loans. Your parents may be able to assist you with the Simple Interest payment each month.
Let’s say you have a Rs. 10,000,00 loan with a 12% interest rate. The monthly SI is Rs 10,000. This is the amount you will be required to pay each month until your EMIs begin. After that, the EMIs are paid.
Documents Required For Education Loan By HDFC Credila
Documents list for HDFC Credila education loans, which depend on your profile, your co-applicant profile, and any property/asset, you may offer as collateral.
Applicant’s Documents
- Identity verification options include voter ID cards, passports, PANsThe passport licenses, and other official government documents.
- Application form for education loans.
- A recent copy of a phone bill, electricity bill, water bill, piped gas bill, driver’s license, or Aadhar card can be used as proof of address.
- Passport
- prior academic performance
- The tenth standard marking sheet
- The twelfth-standard grade report
- Undergraduate outcome, broken down by semester
- Results of entrance exams (such as the GMAT, GRE, TOEFL, etc.)
- Admission letter as evidence of admission (a conditional admission letter is also valid).
- Expense statement.
Co-Applicant’s Documents
- Proof of identity can be in the form of a voter ID card, passport, driver’s license, PAN, or other official government document.
- Please provide a copy of your most recent phone, electricity, water, or piped gas bill, as well as a copy of your driver’s license or Aadhar card.
- 2 passport-size photographs.
- Statement from the co-borrower’s or guarantor’s bank account for the previous six months (if the education loan is being taken over).
- Proof of income for co-applicant/guarantor who is salaried
- Salary slips for the last 3 months.
- paystubs from the previous three months.
- Bank account statement for the last 6 months (Salary account).
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.
- Income proof for self-employed co-applicant/guarantor
- Business address proof.
- Last 2 years IT returns ( If IT Payee).
- TDS certificate (Form 16A, if applicable).
- Certificate of qualification (for C.A./ doctor and other professionals).
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
- Bank account statement for the last 6 months.
Eligibility Criteria Of HDFC Credila Education Loan Scheme
- Age: The applicant must be at least eighteen years old and an Indian citizen at the time of application. The student should have been granted admission to a respectable university.
- Academic performance: The applicant needs to come from a strong academic background. The candidate must meet the minimal academic standards set by the funding agency in addition to passing mandatory tests like the GRE, TOEFL, or IELTS.
- Co-applicant: To be qualified for the loan, the borrower needs a co-applicant, who could be their mother, father, sister, brother, spouse, paternal or maternal family, or legal guardian. The co-applicant should have good credit and be in stable financial standing.
- Course and country of study: The program offers a broad range of courses from foreign institutes and universities in the USA, UK, France, Canada, Australia, New Zealand, Germany, Ireland, and other countries. Post-graduate and regular graduate degrees, diplomas, certificates, and doctorates are among the courses covered.
HDFC Credila Education Loan Benefits for Students
While banks comprehend loans, HDFC Credila Education Loan is more aware of the needs of students! Finding school loans presents several difficulties for students. Among the problems that students encounter are:
- Many formalities and activities are required of students traveling to the USA, UK, Canada, Australia, and other countries, which takes time. It becomes quite challenging to run from branch to branch and complete many rounds for student loans.
- The dates for visa interviews are drawing near, and obtaining the school loan approval letter ahead of time is necessary to schedule the interview. As a result, there is extreme pressure to obtain an education loan as soon as possible.
- Flexibility with loans, which should be customized to meet the needs of each student and the requirements of their courses
- The ability to find the required margin money—the portion of costs that parents or students are responsible for paying but that the loan does not cover—
- The value of the collateral security is less than the needed loan amount.
- The ability to prove that the chosen institution, college, and applicable course are appropriate. (This can be challenging if the individual choosing is not aware of the thousands of reputable and approved educational options that are currently available in the quickly changing sector of education.)
- The capability to use a web browser to view the loan account online and carry out transactions, including electronic payments.
Conclusion
HDFC Credila, the pioneer of specialist education loans in India, distinguishes itself by providing options designed especially for students who wish to pursue higher education overseas. With its creative approach, HDFC Credila Education Loan offers large loan amounts at reasonable interest rates with favorable repayment terms, streamlining the lending procedure. HDFC Credila’s appeal is further enhanced by the tax benefits it offers under Section 80E of the Income Tax Act. HDFC Credila eases the difficulties of obtaining student loans by putting the requirements of students first and streamlining the application process.
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