HDFC Credila Education Loan: Best Way to Finance Studies

Types of HDFC Credila Education Loan

The HDFC Credila also referred to as the Credila Financial Services Limited, is a specialized study loan provider in India. Moreover, these education loans are available for studying in India and abroad. But, the requirements, eligibility, etc., are different for both domestic and international study loans. The HDFC education loan for higher studies can further be divided based on the necessity of security. Hence, the following are the two types of education loans:

1. Secured

The education loan that requires the applicants to pledge an asset as the security for the amount borrowed is referred to as a secured loan. This also means that the lender can seize this security if there is a loan default. These assets are called collateral and can include house, flat, fixed deposit or land. These loans further have lower interest rates, longer repayment periods and higher sum of money.

2. Unsecured

The type of education loans that do not require borrowers to provide any asset or security are termed as unsecured loans. Since, no collateral is required they are also called non-collateral loans. These loans are sanctioned based on the creditworthiness of the borrower and the potential future income. They generally have a higher interest rate and strict eligibility criteria.

Now, let’s take a look at the HDFC education loan for studying in an overseas institute.

Also read: Best Education Loan in India

HDFC Education Loan for Abroad

The HDFC education loans are also available for those students who wish to study abroad. These foreign education loans make it financially easier for them to garner higher education overseas. Moreover, the requirements are nominal making it a great way to finance your studies. First, let’s see what are the eligibility requirements for getting an education loan for study abroad in various nations.

Eligibility Criteria and Process for HDFC Education Loan

The eligibility criteria for an education loan for studying abroad can vary from those for studying in India. Therefore, here are the details of the conditions that you need to fulfil in order to get a study loan.

Studying in India:

If you are studying in India, then the following are the criteria for you:

• Indian resident
• Age: 16 to 35-year-old
• Co-applicant is mandatory
• Admission to a recognized institution
• Approved courses (UG, PG or diploma)
• University recognized by AICTE/UGC/AIBMS/government etc.

Studying abroad:

If you want an HDFC education loan for abroad, then the criteria for you are as follows:

• Both the applicant and co-applicant must be Indians
• Co-applicant must have a bank account in India
• Confirmed admission to the institute
• Ability to provide collateral (in certain cases)

Now that you know all about the eligibility criteria let’s see how you can apply for the HDFC Credila education loan for your studies:

• You can easily apply for a loan on the official website.
• Next, the officials will set up a meeting at your home to visit and collect the signed application form.
• Then, the representatives will check the credit history of the co-applicant
• The details about the employment are verified and with the help of Credila’s Predictive credit scoring model, risk analysis is done.
• After considering all the facets, the HDFC Credila can either accept or decline the loan proposal
• After accepting the loan application, disbursement formalities are completed.
• Finally, the HDFC Credila disburses the education loan amount.

HDFC Education Loan with Collateral

If you are looking for an education loan with collateral, then HDFC can cover your entire study cost with no upper limit. Moreover, the abroad education loan can be used for studying in more than 35 countries, 2100 universities and 950 courses. In the case of an education loan with collateral, the loan repayment period involves 14 years with the moratorium period. You can further offer two types of collateral:

Moveable: HL with HDFC Ltd or a fixed deposit with the HDFC bank

Immoveable: Bungalow, house, shop, flat or non-agriculture land, etc.

The following is a brief overview of the HDFC education loan with collateral for higher studies:

HDFC Education Loan Without Collateral

If you lack the necessary assets to get a secured loan, then you can opt for an HDFC education loan without collateral for studying in India and abroad. The details of a non-collateral education loan are as follows:

This is all about the HDFC education loan without collateral and with collateral. Now, take a look at the interest rates for these loans.

HDFC Education Loan Interest Rate

The HDFC education loan scheme aims to facilitate the cost of higher studies by offering easy repayments and lower education loan interest rate to students. Therefore, this type of education loan can be a great way for students to finance their education in India or abroad. Moreover, the simple interest is calculated for the duration of the study period, which makes it easy to repay the loan. The following are some of the HDFC education loan interest rate and the interest amount charged by HDFC.

Below is the detailed description of HDFC Education Loan Interest Rate:

The HDFC education loan interest rate can change as per the bank requirements. Hence, consult the officials to know more about these.

Also read: Bank of Baroda Education Loan

Expenses Covered by HDFC Credila Education Loan

While availing an education loan for higher studies, in India or abroad, it is important to take into account all the expenses that you will incur. In addition to that, you need to compare these to the expenses that your study loan will be covering. Hence, the following are the expenditures that are covered under the HDFC Credila education loan for higher studies:

• Tuition fee for the course as per the university/college
• Living and hostel cost
• Cost of travelling
• Examination fees
• Laboratory and library fees
• Books and other stationery materials
• Instruments/equipment or uniform
• Purchasing of laptop or computer (If necessary to complete the course)
• In case of study loan for abroad, it will also include the fare for an economy class return ticket to India from the specific nation.

These are some of the costs covered by a good education loan. You can also use an HDFC education loan calculator to know the expenditure and loan amount. Next up are the papers for applying for a study loan.

Documents Required for HDFC Education Loan

When applying for an education loan it is crucial that you have all the necessary documents. This is because there is a whole list of documents required for education loan that you will be submitting with your form and missing any of these can delay the process. In addition, in some situations, it can also lead to the denial of the study loan. Hence, the following are some of the HDFC education loan documents required that you need to carry with you:

• Completed and signed loan application form
• Two passport-sized photographs (Applicant and co-applicant)
• Photo ID (PAN card, driving license, passport, Aadhaar card or voter’s ID card)
• Residence proof (Aadhaar card, driving license, voter’s ID or passport)
• Academic credentials of the student (12th standard mark sheet, Graduation certificate or transcripts, entrance exam mark sheet, GMAT/GRE/IELTS/TOEFL mark sheet, scholarship papers)
• Admission letter or offer letter from the University (on its letterhead with address)
• Bank statement of co-applicant (last 8 months’ worth)
• Income proof of the co-applicant (salary slips or income tax returns)
• In the case of a secured loan, you will need to provide collateral (House, flat, non-agricultural land)

You can further connect with experts who can help you sort out the HDFC education loan documents required and make the application process easier for you.

Confused which documents to prepare for your HDFC education loan?

Get Expert Guidance

Conclusion

In conclusion, these are the details about the HDFC Credila loans for education in India and abroad. You can get more details about these loans from study abroad consultants, before making a decision. These experts will help you with the application process as well. In addition, you can use the education loan EMI calculator to find out the monthly installments that you will need to pay.

Also read: Education Loan For Abroad Studies

FAQ’s:

Ques.1 Is HDFC credila good for education loan?

Ans. Yes, HDFC Credila is considered a reliable choice for education loans. It specializes in student financing and offers flexible loan options, quick processing, and dedicated support.

Ques.2 How to check HDFC credila education loan status?

Ans. You can easily check your loan status online. Just visit the official HDFC Credila loan tracking portal, enter your application number, solve the captcha, and click submit. The current status of your application will be displayed instantly.

Ques.3 What is the processing fee for HDFC Credila abroad education loan?

The processing fee for a HDFC Credila abroad education loan ranges between 1% and 1.25% of the total loan amount.

Ques.4 How much time does HDFC Credila take to approve a loan?

The time required for the processing of a HDFC Credila education loan is approximately 7 to 15 working days. However, this time can vary depending on the documentation, loan amount and other related conditions.

Ques.5 What if the student taking a HDFC study loan gives up studies without completing their programme?

In case you have availed a study loan from the HDFC bank, and give up studying before the course completion, then there are two things that you can do:

• You can repay the outstanding loan amount to the bank and foreclose it.
• You can keep paying the monthly EMI as per the schedule and avoid a loan default.