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Are you planning to pursue higher education but worried about the costs? The HDFC Credila Education Loan is designed to make your academic dreams a reality. With flexible repayment options and tailored features, it’s a trusted partner for students aiming to study in India or abroad.
Let’s explore how this loan can support your journey.
In this blog you will know:
1. They offer interest rates as low as 10.25%. Lets read about the different kinds of loans and the factors that affect these rates.
2. Know the documents required, the eligibility criteria and the application process for this loan.
3. Know the loan processing time, how to check the loan status and the prepayment process.
HDFC Credila Education Loan: Features
HDFC Credila offers education loans designed to empower students who wish to go for higher studies. Here’s a breakdown of the crucial features of HDFC Credila’s non-collateral education loan:
|
Feature |
Description |
|
Loan Amount |
Up to INR 1.5 crore for secured loans, and up to INR 70 lakh for unsecured loans, depending on factors like the applicant’s profile and course requirements. |
|
Interest Rate |
Competitive rates range from 10.50% to 12.25%, tailored based on the applicant’s academic and financial profile. |
|
Processing Fees |
Charges between 0.75% and 1.25% of the sanctioned amount, keeping costs transparent for both secured and unsecured options. |
|
Processing Time |
Quick processing times, typically within 7-10 days, ensuring timely access to funds for students. |
|
Margin Money |
No margin money required, allowing HDFC Credila to cover up to 100% of approved expenses, easing the financial burden on students and families. |
|
Moratorium Period |
Offers a moratorium period of course duration plus an additional 1 year, providing a grace period before repayment begins. |
|
Repayment Tenure |
Flexible repayment period of up to 15 years, allowing students to repay in a manageable timeframe post-graduation. |
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Types of HDFC Credila Education Loans
HDFC Credila offers a variety of education loan options to meet the diverse needs of students, including both secured and unsecured loans. These loans are tailored based on whether the student has collateral, the country of study, and other financial requirements.
Here’s an in-depth look at the types of education loans offered by HDFC Credila:
Students planning to finance their higher studies can explore the types of education loans offered by HDFC Credila and compare them with other private lenders for better decision-making.
1. HDFC Credila Secured Education Loan
This requires collateral, such as property or liquid assets. It is ideal for students needing high loan amounts for studies in India or abroad.
|
POV |
Details |
|
Loan Amount |
U Up to INR 1.5 crore, based on collateral value. |
|
Interest Rate |
Starting from 9.75%, depending on applicant profile and collateral type. |
|
Repayment Tenure |
12-15 years |
|
Other Features |
Higher loan amounts, competitive interest rates, flexible pre- payment terms, pre admission evaluation |
2.HDFC Credila Unsecured Education Loan
Does not require collateral, such as property or liquid assets. It is ideal for students needing high loan amounts for studies in India or abroad. Check out the below table to know the HDFC Credila Education Loan without collateral interest rate:
|
POV |
Details |
|
Loan Amount |
Up to INR 70 lakh, depending on academic profile and co-applicant’s financial standing. |
|
Interest Rate |
0.50% - 12.25% |
|
Repayment Tenure |
Up to 12 years |
|
Other Features |
Provides financing without collateral, includes flexible moratorium options and tax benefits under Section 80E. |
3.HDFC Credila Education Loan for Indian Institutions
Designed for students pursuing professional courses in India, such as MBA, MBBS, and engineering. Offers full coverage for expenses.
|
POV |
Details |
|
Loan Amount |
Up to INR 50 lakh |
|
Interest Rate |
Starting at 13.8% |
|
Repayment Tenure |
Up to 10-12 years |
|
Other Features |
Covers both tuition and living expenses, includes pre-admission evaluation to help students plan finances in advance. |
4.HDFC Credila Education Loan for Abroad
Comprehensive loan solutions for students pursuing higher education in international institutions.
|
POV |
Details |
|
Loan Amount |
Up to INR 1.5 crore (secured), up to INR 80 lakh (unsecured for USA) |
|
Interest Rate |
Varies by country and applicant profile, starting from 10.50% for unsecured loans. |
|
Repayment Tenure |
Up to 12-15 years |
|
Other Features |
Customised options for different countries, with flexible repayment terms and higher loan limits for top universities. |
5.Unsecured Loans for USA
Specifically for students studying in the USA, based on factors like GRE scores and university ranking.
|
POV |
Details |
|
Loan Amount |
Up to INR 80 lakh for highly ranked universities |
|
Interest Rate |
Starting from 10.75% for profiles with strong GRE scores. |
|
Repayment Tenure |
Up to 12 years |
|
Other Features |
Offers higher limits for top-tier US universities; interest rates vary based on GRE score and institution rank. |
6. Unsecured Loans for Non US Countries
Designed for students studying in major destinations like Canada, UK, Australia and are wihout any collateral
|
POV |
Details |
|
Loan Amount |
Up to INR 60 lakh, based on the country and ranking of the institution |
|
Interest Rate |
Starting from 11%, with adjustments by country. |
|
Repayment Tenure |
Up to 12 years |
|
Other Features |
includes options for country-specific needs (e.g., GIC for Canada), with flexible moratorium based on course duration. |
7.Education Loans for Other Countries
Specialised loans for students studying in destinations beyond the USA, Canada, and the UK, such as Germany, France, and Singapore.
|
POV |
Details |
|
Loan Amount |
Loan amounts vary depending on the specific country and institution. |
|
Interest Rate |
Based on applicant profile and country, ranging from 11% - 13%. |
|
Repayment Tenure |
Up to 12-15 years, depending on location. |
|
Other Features |
Customised repayment terms for each country, including visa and residency support, pre-admission approvals for Singapore, etc. |
Explore step-by-step guidance and tips in our detailed guide: How to Get an Education Loan for Abroad Studies in 2024.
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HDFC Credila Education Loan Eligibility Criteria
To ensure that applicants meet the necessary standards for loan approval, HDFC Credila has outlined specific eligibility criteria for both secured and unsecured education loans. Let’s see the comparison:
|
Eligibility Criteria |
Secured Loan |
Unsecured Loan |
|
Nationality and Age |
Must be an Indian citizen and at least 18 years old at the time of application. |
Must be an Indian citizen and at least 18 years old at the time of application. |
|
Admission Requirement |
Admission to a recognised institution in India or abroad for a full-time program. |
Admission to a recognised, reputable institution in India or abroad. Higher-ranking institutions are preferred. |
|
Collateral Requirement |
Requires collateral such as immovable property (e.g., residential or commercial property) or liquid assets. |
No collateral is required. |
|
Co-Applicant Requirement |
Co-applicant required (e.g., parent, spouse, sibling, or close relative) with a stable income and good credit history. |
Co-applicant required with strong financial profile, stable income, and good credit history. |
|
Academic Background |
A strong academic record is preferred, though exact requirements may vary by program and institution. |
Strong academic background and competitive standardised test scores (e.g., GRE, GMAT, TOEFL, or IELTS for studies abroad) are beneficial. |
|
Minimum Income for Co-Applicant |
Not specified; however, the co-applicant’s income stability and creditworthiness impact loan approval. |
The minimum income requirement for co-applicants varies based on the loan amount and study destination. |
|
Specific Course and Country Eligibility |
Applicable for a wide range of undergraduate, postgraduate, and professional programs in India and abroad. |
Typically available for postgraduate programs in high-employability fields (e.g., STEM) in popular destinations like the USA, Canada, UK, and Australia. |
Before applying, students must understand the HDFC Credila loan eligibility criteria to ensure they meet the academic and co-applicant requirements specified by the lender.
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Documents Required for HDFC Credila Education Loan
To successfully apply for an HDFC Credila Education Loan, applicants must provide specific documents that verify their identity, academic background, financial status, and collateral (if required). Below is a detailed table listing the required documents:
|
Category |
Required Documents |
|
Student Applicant |
|
|
Co-Applicant |
|
|
Collateral (Secured Loans) |
|
If you're curious about education loans that don't require collateral, you might want to check out our article on the best banks and interest rates for 2024. It could help you explore more options!
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HDFC Credila Education Loan Interest Rate and Processing Fee
HDFC Credila provides competitive interest rates and transparent processing fees, designed to make education financing accessible and manageable. Below is a detailed breakdown of the interest rate structure and processing fees associated with HDFC Credila Education Loans.
Interest Rate Structure
HDFC Credila uses a variable interest rate system tailored to the borrower’s academic profile, course, and repayment capability. The rates depend on factors such as whether the loan is secured or unsecured, the study destination, and the applicant’s credit profile.
|
Loan Type |
Interest Rate Range |
|
Secured Education Loan |
Starting from 9.75%, depending on collateral value and applicant’s profile. |
|
Unsecured Loan (USA) |
Starting from 10.75%, with rates adjusted based on GRE scores and university rankings. |
|
Unsecured Loan (Non-US) |
Starting from 11%, tailored for countries like Canada, UK, Germany, and Australia. |
Applicants should compare the HDFC Credila education loan interest rate and processing fee with other leading lenders to make an informed decision.
Key Factors Influencing Interest Rates
1. Academic Profile
Strong academic scores and admission to high-ranking institutions can lower interest rates.
2. Loan Type
Secured loans generally have lower rates due to collateral-backed security.
3. Country of Study
Loans for the USA may offer more favourable rates compared to other countries.
4. Co-Applicant’s Credit Profile
A strong credit history and stable income for the co-applicant positively impact rates.
Do read this blog about Credit Score and Why it Matters to know more details about credit score and its effect on your loan approval.
Processing Fee
HDFC Credila charges a one-time processing fee that is transparent and proportionate to the sanctioned loan amount. This fee ensures streamlined processing and administrative management.
|
Loan Type |
Processing Fee |
|
Secured Loan |
1%–1.25% of the loan amount. |
|
Unsecured Loan |
0.75%–1.25% of the loan amount, depending on the applicant’s profile and loan terms. |
Additional Details
1. Fee Discounts
Applicants with a strong academic or financial profile may qualify for discounted processing fees.
2. Breakdown of Charges
The fee covers documentation, legal reviews (for secured loans), and administrative costs.
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HDFC Credila Education Loan Calculator
The HDFC Credila Education Loan EMI Calculator offers clear insights into monthly instalments, total interest payable, and overall repayment amounts, thus helping borrowers make informed decisions about their financial commitments.
How the EMI Calculator Works?
The EMI calculator uses the following inputs to provide accurate results:
1. Loan Amount
The total amount borrowed from HDFC Credila.
2. Interest Rate
The applicable rate of interest, which varies depending on the loan type (secured or unsecured) and other factors.
3. Loan Tenure
The repayment duration, typically ranging from 12 to 15 years.
4. Repayment Start Date
The point at which EMI payments begin, often post-moratorium.
Using these inputs, the calculator determines the Equated Monthly Instalment (EMI) amount using the following formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]
Where:
1. P = Loan Amount
2. R = Monthly Interest Rate (Annual Rate ÷ 12)
3. N = Number of Monthly Instalments (Loan Tenure in months)
Let’s see an example:
For a loan of ₹10,00,000 at an 11% monthly interest rate, with a 60-month tenure:
1. Monthly EMI: ₹21,742.42
2. Total Principal: ₹10,00,000
3. Total Interest: ₹3,04,545.38
4. Total Repayment Amount (Principal + Interest): ₹13,04,545.38
You can also use the simple education loan emi calculator by Propelld and check out the most hassle free education loans.
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How to Apply for HDFC Credila Education Loan?
HDFC Credila offers a simple and efficient process for securing an education loan. Here’s a quick guide to help you apply for your education loan with ease.
1. Check Eligibility
Verify that you meet the eligibility criteria based on your course, institution, and financial background.
2. Gather Required Documents
Gather and complete all documents as required and mentioned by the lender.
3. Submit Your Application
- Online: Complete the application on HDFC Credila’s website and upload your documents.
- Offline: Visit your nearest branch for assistance with the application.
4. Loan Agreement and Sanction Letter
After a thorough review of the application, if it is approved, HDFC Credila will prepare the final loan agreement for you, your co-borrower, and guarantors to sign. Make sure to carefully review the terms before signing. Post this, a sanction letter will be released to you.
HDFC Credila Loan Disbursement Process
1. Choose Your Disbursement Date
Once you are done with completing the application process and the loan agreement, the sanction letter is in place, decide a disbursement date. Pick a date that works best for you, keeping in mind your university’s payment deadlines and personal needs. This ensures you have the funds when you need them most.
2. Decide How Much to Disburse
Determine the amount you’ll need per disbursement and communicate this clearly to HDFC Credila.
3. Submit Essential Documents
Gather and submit all required documents, like demand letters, fee schedule etc as required by the lender to avoid any unnecessary delays in the process.
4. Set Up ECS for Easy EMI Payments
Fill out the ECS mandate form to automate your loan repayments. This helps you stay on top of your EMIs without any manual effort.
5. Funds Sent Directly to Your University
Once everything is in place, HDFC Credila will transfer the loan amount directly to your university’s account or provide a demand draft, ensuring a smooth payment process.
This seamless process ensures you can focus on your education while HDFC Credila takes care of your financial needs.
How to Check Your HDFC Credila Education Loan Status?
Tracking the status of your HDFC Credila education loan is quick and easy. Here’s how you can check it online:
1. Visit the Loan Status Tracker
Go to the HDFC Credila website and find the loan status tracker page.
2. Enter Your Details
Fill in the required details such as your name, reference number, date of birth, and registered mobile number to identify your loan.
3. Submit and View Your Status
Click 'Submit' to view key information such as disbursement details, outstanding balance, and interest rate.
4. Contact Support
If you need further assistance, reach out to HDFC Credila’s customer support team for help.
HDFC Credila Education Loan Processing Time
HDFC Credila generally processes education loans within 7 to 15 working days, though the timeline can vary based on factors like document completeness, verification, and the loan amount.
To ensure your application is not delayed for any avoidable reasons, do ensure:
1. Complete Application
Fill out your application carefully and ensure all details are accurate to avoid any delays.
2. Submit Documents Early
Follow the checklist and submit all required documents in the correct format to avoid setbacks.
3. Quick Responses
If HDFC Credila requests more information, respond as quickly as possible to keep things moving smoothly.
Once your loan is approved, HDFC Credila typically disburses funds within 15 working days, as long as all necessary documentation is provided.
Credila Education Loan Repayment
Repaying your HDFC Credila education loan is designed to be flexible and stress-free. Here’s a quick overview of how it works:
1. Moratorium Period
You can take advantage of the moratorium period, which covers your course duration plus one extra year or six months after securing a job. During this time, you typically pay just the interest, so you can focus on your studies or career without worrying about full repayment.
2. Repayment Schedule
Once the moratorium ends, your repayment begins through Equated Monthly Installments (EMIs). You’ll have the flexibility to choose a tenure of 10 to 15 years, so you can manage your finances comfortably.
3. Prepayment Options
If you're able to make early payments, HDFC Credila allows you to prepay or make part-payments without penalties. This helps you reduce the principal amount and save on interest.
4. Multiple Repayment Methods
Whether it’s through ECS, NACH, post-dated cheques, or standing instructions, HDFC Credila offers various ways to repay, so you can choose what works best for you.
5. Consequences of Defaulting
It's essential to stay on top of your repayments. Defaulting can negatively impact your credit score, making it harder to secure future loans.
HDFC Credila Prepayment
Looking to pay off your HDFC Credila loan early? Let's see how to do it.
There are two types of prepayment options that you can choose:
1. Full Prepayment
Settle the entire loan amount before the term ends.
2. Partial Prepayment
Make partial payments to reduce the principal and lower interest over time.
How to Prepay?
1. Contact Customer Support
Inform them of your intention to prepay.
2. Request Payment Details
Get the exact amount due.
3. Make the Payment
Pay through available channels.
4. Get Confirmation
Ensure you receive confirmation that your loan is settled.
HDFC Credila doesn’t charge any penalties or fees for early prepayment. However, do consider checking loan terms and ensure your prepayment fits your financial goals.
Are there any Tax benefits in HDFC Credila Education Loan?
Yes, taking an education loan from HDFC Credila comes with the added benefit of tax deductions under Section 80E of the Income Tax. However, the loan must be for your own higher education or that of your spouse, children, or a legal ward.
When filing taxes, claim the deduction on the interest paid under Section 80E to reduce your taxable income.
Key Benefits of HDFC Credila Education Loan
Benefits for Parents
HDFC Credila Education Loans make it easier for parents to support their child’s education.
1. Tax Benefits
Parents can enjoy tax deductions on the interest paid under Section 80E, helping ease the financial load.
2. No Margin Money
With 100% financing, there’s no need for upfront contributions, making the process smoother for you.
3. Collateral Flexibility
HDFC Credila offers flexible collateral options, and in some cases, no collateral is required, depending on the loan profile.
4. Convenience & Doorstep Services
The loan application process is hassle-free, with representatives coming to your doorstep for paperwork, saving you time and effort.
5. Flexible Repayment Options
With repayment terms extending up to 15 years, it ensures manageable EMIs, reducing financial pressure.
6. Quick Processing
HDFC Credila’s fast processing ensures your child’s education loan is ready when you need it most.
Benefits for Students
HDFC Credila makes education financing easy with personalized loans, quick approvals, and flexible terms, so you can focus on your studies.
1. Pre-Admission Approval
With loan approval before applying to universities, you gain financial certainty, making the application process smoother and more confident.
2. Helps with I-20 & Visa
The loan approval letter serves as proof of funding, simplifying the process of obtaining your I-20 form or student visa, and setting you on the right path for studying abroad.
3. Comprehensive Financial Support
HDFC Credila covers everything from tuition to living expenses, so you don’t have to look for additional funding, letting you focus on your studies.
4. Expertise in Education Loans
With years of experience, HDFC Credila understands the unique needs of students and offers tailored solutions to ensure you get the best possible support.
5. Simple, Quick Application
The application process is quick, secure, and free of charge—apply online in just a few minutes without the hassle of paperwork or multiple visits to the bank.
HDFC Credila Education Loan Review
HDFC Credila provides quick approval for education loans, even before admission, once you are deemed creditworthy. This allows you to show financial backing to universities, helping you secure your spot. The loan formalities are completed swiftly once approved, making the process hassle-free.
Also, it has a wide range of courses and institutions covered abroad or in prestigious Indian institutions.
HDFC Credila Education Loan offers a seamless way to finance your higher education dreams, whether in India or abroad. With flexible repayment options and competitive interest rates, it’s designed to ease your financial journey. Explore the possibilities and take a step closer to your academic aspirations.
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Why Propelld?
There are several more benefits of getting a Propelld Education loan. They are:
| Particulars | Details |
|---|---|
| Max Loan Amount | 50 Lakhs |
| Collateral | Not Required |
| Moratorium | Available |
| Processing Time | 10 Times Faster than Banks |
| Disbursal Time | 7 Days |
| Approval Rate | Higher than Other Banks |
| Special USP | Marks Based Approval |
| % Financed | 100% of Fees |
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