Credila Education Loan

  • Max Loan Amount - No ceiling
  • Nil margin and upto 100% finance even for loans of more than Rs. 4 lakh
  • Door step service and quick processing
  • Tax benefits under section 80E of Income Tax Act of India
  • Pre-approved loans before admission to chosen courses is confirmed
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Education Loan HDFC Credila

  Courses in India Courses Abroad IIT, IIM, ISB Courses
Max Loan Amount No ceiling No ceiling No ceiling
Max Funding as Proportion of Cost      
Loans upto Rs. 4 lakh 100% 100% 100%
Loans above Rs. 4 lakh 95% 85% 95%
Max Tenure Post Moratorium      
Loans upto Rs. 7.5 lakh 7 years 7 years 7 years
Loans above Rs. 7.5 lakh 7 years 7 years 7 years
Co-Applicant required (Y/N) Yes Yes Yes
Third Party Guarantee      
Loans upto Rs. 4 lakh Case to case Case to case Case to case
Loans Rs. 4.0 - 7.5 lakh Case to case Case to case Case to case
Loans > Rs. 7.5 lakh Case to case Case to case Case to case
Collateral Security (Fixed deposit/ Property, LIC)      
Loans upto Rs. 4 lakh Required Required Required
Loans Rs. 4.0 - 7.5 lakh Required Required Required
Loans > Rs. 7.5 lakh Required Required Required
Prepayment Charges (Y/N) Nil Nil Nil
Moratorium Period (lower of the two)      
After course period 12 months 12 months 12 months
After getting job 6 months 6 months 6 months

HDFC Credila Student Loan Eligibility

Determinants of Eligibility for Education Loans
Age of the Applicant
  • No Age limit defined for the borrowers. The decision is taken on the evaluation of reason of motivation for pursuing higher studies and also the potential of students to benefit from it in their career.
Who is eligible
  • Borrower must be an Indian citizen.
  • Co‐applicants(s) must be an Indian citizen.
  • Co‐borrower(s) must have a bank account in any bank in India with cheque writing facilities.
  • Confirmed admission in the colleges before disbursement Borrower and Co‐applicant(s) to meet Credila's credit and underwriting norms as applicable from time to time.
Maximum Loan Amount
  • Minimum Loan Amount Indian Rupees 1,00,000
  • Lifetime Maximum Loan Amount: Credila does not have an upper limit on the loan. We processes loans exceeding Indian Rupees 25,00,000 also, subject to the case meeting Credila's credit and underwriting norms as applicable from time to time.
Which Cost Heads/ Expenses are Funded by Bank
  • Admission fees including monthly fees and examination fees.
  • Books, stationery and equipments.
  • Travel expenses/ passage money for studies abroad.
  • Boarding and lodging expenses of authorized hostel or boarding house.
  • Expenses required to complete the courses like those on study tours, project work and thesis etc.
Co-borrower/ Guarantor/ Security
  • It is mandatory to bring in an earning co‐applicant(s) based in India to support the Education Loan application.
  • Co‐applicant(s) may be any of the following relatives, viz Father / Mother / Brother / Sister (married) /Spouse, where such co‐applicant’s income would be considered in determining the loan eligibility per Credila's credit and underwriting norms.
  • Co‐applicant's liability is co extensive with the Student.
  • Co‐applicant(s) to provide documentary proof to establish their relationship with the student, to the satisfaction of Credila.
  • In case the collateral to be provided is not provided by one of the above relatives, then the collateral could be provided by one of the following relatives provided they are brought into the arrangement as Co‐applicant(s) viz: Father‐in–law; Mother‐in‐law; Sister‐in‐law; Brother‐in‐law; Maternal or Paternal Uncle or Aunt, Grandparents & First Cousins.
Repayment Frequency
  • Loan interest re‐payment will start immediately after disbursement of the first installment of the loan.
Repayment Period
  • Tenure of an education loan consists of Duration of Study + Grace Period after the Study + Repayment Period.
  • Credila offers maximum tenure of 12 years.
  • The loan tenure is however, subject to the factors such as the repayment capacity of the customer/s, future prospects of the course, age of the co‐applicant, etc. and further subject to Credila’s credit and underwriting norms as applicable from time to time. However, Credila would endeavour to determine the repayment period to suit your convenience.
  • onthly repayment amount will be deducted from the bank account of the borrower/co‐borrower using (ACH).
Key Appraisal Criteria
  • Good academic record with atleast 50% marks in the qualifying examinations.
  • Admission letter from bonafide educational institution.
  • Passport/visa/i-20 form for studies abroad.
  • Net-worth and credit history (CIBIL) of the guarantors.
Tax Benefits
  • Interest paid on education loan can be claimed as deduction from income of borrower (student) as per Section 80E of the Income Tax Act, 1961.
  • Rebate can be claimed without any upper ceiling or cap.
  • Rebate is available for full time courses, part time courses and vocational courses pursued in India and abroad.
  • Rebate can be claimed within eight (8) years post moratorium period subject to actual payment of interest.
  • Rebate is available for interest paid on loans for education of self, spouse, children or for the student of whom he/she is the legal guardian.
  • No rebate is available for principal repayment.

Credila Education Loan Interest Rate – Alternatives

  • In case you or your parents have availed a home loan and the property is registered, you may opt for a top up loan with balance transfer of the home loan . In this case, you don’t to provide any additional security and the rate of interest will be close to home loan rate (currently 8.60%). This will also be longer tenure loan (upto 15 years) and will result in lower EMI. However, you will not be able to claim income tax benefit available on education loan in this case.

HDFC Credila online Education Loan – Things to check

  • You have a valid offer letter from a recognized educational institution.
  • You meet the eligibility criteria of the bank that you are applying to.
  • You have not defaulted on loans or credit card dues in the past and have not delayed payments. If you have, these will reflect in your CIBIL report, hurt your CIBIL score and may result in rejection of your education loan application. Estimate your CIBIL score for free by using CIBIL score estimate calculator.
  • Your CIBIL report does not erroneously show defaults or delayed payments. This can be due to inadvertent error in data shared by banks with CIBIL.
  • You have made own arrangement for margin money and for expenses that are not covered by banks under education loan.
Education Loan News - Jan 2017
03rd Oct 16 Bihar CM Nitish Kumar launches Student Credit card
Nitish kumar launches a student credit card scheme for the students who have passed senior secondary education and wish to persue higher studies. This will be treated as Education Loan. The withdrawing limit will be upto 4 lakhs where interest rate will be born by the Bihar government.
14th Sep 16 Cabinet clears student credit card scheme
The state cabinet gave its nod to Student Credit Card Scheme. Under this scheme, the 12th passout students can take education loans of up to Rs 4 lakh for pursuing higher education. The government will act as guarantor and provide support to the students to get loan from banks. The students who take admission to any recognised institution will be eligible for loan, irrespective of their financial background. The Bihar government will sign a memorandum of understanding this month with the banks and the interest rate will be kept at 2 per cent above the benchmark rate.
14th Aug 16 SBI raises education loan cap five-fold to Rs 1.5 crore
State Bank of India has increased its limit for overseas education loans to Rs. 1.5 crore from Rs. 30 lakh currently. SBI is also increasing loan amount of government guarantee loan to Rs. 7.5 lakh from Rs. 4 lakh. SBI is an improving demand for education loans since it combined with the government Vidya Lakshmi portal, and 10 percent of its education loan applications are already through the portal. The current education loan book of SBI stands at Rs. 15,000 crore and it is expecting a growth of 15 per cent and 20 per cent in number of loans disbursements respectively
23rd Jul 16 Banks cut education loan rates, bring them down to 2008 level
State Bank of India, Bank of Maharashtra have reduced interest rates on educational loans by about 25 basis points over the past weeks. This move has brought the interest rates down to 2008 levels. Depending on the tenure and the loan size , the new interest rates for loans are between 10.8% and 12.2% at public sector banks. Banks had charged interest rates higher than 13% for the previous year. Top private Banks, ICICI Bank and HDFC Bank have reduced their interest rate on educational loans by nearly 200 bps since June 1, to between 13% and 17%, with loans being half a percentage point less for girl students.
29th Jun 16 Odisha announces higher education loan at 1 per cent interest
Economically weaker students aspiring to pursue professional and technical education can now avail study loan up to Rs 10 lakh at one per cent interest rate. The state government will create a corpus of Rs 500 crore from its own resources for the subsidised loan scheme christened Kalinga Sikshya Sathi Yojana (KSSY). The subsidized higher education loan was part of BJD election manifesto before the simultaneous Lok Sabha and state assembly elections.
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