HDFC Credila, an HDFC Ltd. Company 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 specialist Education Loan lender. With a specialised focus, HDFC Credila offers Home Delivered Customised Education Loans on an in-depth understanding of the requirements of students who wish to pursue masters abroad. Wish to know more? This blog will answer all your questions on the HDFC Credila education loan interest rate, eligibility, expenses covered, and a lot more on the HDFC Credila Education Loan!
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Essential Things to Know before Applying for HDFC Credila Abroad Education Loan
The section below will entertain all your questions about HDFC Credila loan eligibility, HDFC Credila loan interest rate, expenses covered, documents required, repayment period, moratorium period, etc.
When to Apply for the HDFC Credila Loan?
With HDFC Credila education loan for abroad, you can apply for the loan immediately after you have taken your GRE, i.e. even before you get admitted. For countries other than the US, you will have to apply once you have started your application with the universities.
The point to be noted is HDFC Credila is very selective about the application. So, you must apply earlier to know if you are eligible for the HDFC Credila loan.
What loan amount does HDFC Credila fund?
- The loan amount varies according to your course, university, and your financial profile.
- HDFC Credila can fund your loan up to INR 45 lacs for HDFC Credila unsecured education loan (without collateral) loan and can be extended more for a secured (with collateral) loan
What is HDFC Credila Rate of Interest?
- The HDFC Credila education loan interest rate varies with different profiles. For an HDFC Credila education loan without collateral, the HDFC Credila rate of interest can be as low as 10.5% to as high as 14%. You will come to know your HDFC Credila education loan interest, once you submit all your documents and apply for the loan. Post which the credit team will decide the HDFC Credila interest rate.
- The HDFC Credila rate of interest for a Secured loan can be 0.5-1% lower than the unsecured loan. However, this HDFC Credila education loan interest is just indicative and this will vary depending on factors such as your academic profile, financial profile, your shortlisted universities, your repayment abilities and your & your co-borrower’s previous credit history.
What is the Repayment Period?
With HDFC Credila non collateral education loan, you are allowed a repayment tenure of up to 12 years but the earlier you pay, the lesser amount of interest is charged.
What is the Moratorium period for HDFC Credila?
The moratorium period provided by HDFC Credila non collateral loan is applied to the principal amount. You can start serving your EMIs (principal + interest) 6 months after your course completion or once you are employed (whichever happens earlier). You are expected to pay the Simple Interest due every month which can be serviced by your parents.
Suppose, you have taken a loan of Rs 10,00,000 at 12% interest. The SI on it every month is Rs 10,000. You are expected to pay this every month till your EMIs start. Post which you pay the EMIs.
What are the Documents Required for HDFC Credila Abroad Education Loan?
The documents required for HDFC Credila education loan without collateral are:
- Fully Completed Application Form
- Photo ID
- Residence Proof
- Academic Documents
- Proof of Admission
- Bank Statements
- Income Proof of Co Applicant
- Immovable Property Document
What is HDFC Credila Loan Eligibility?
The HDFC Credila majorly focuses on the academic profile and the future employability of the student. The financial status of the co-borrower is also a factor which they take into consideration when sanctioning your loan. HDFC Credila pays very high attention to your credit history. Poor credit history can cause your loan to decline.
In the case of US STEM-based programs, loans tend to get sanctioned easily. Also if you have a good GRE score, it will be an added advantage.
Suggested: All about financing your education abroad
What expenses does HDFC Credila cover?
HDFC Credila funds the total cost of your education, including living expenses & all other expenses reducing your financial worries.
Is section 80E deduction applicable under HDFC Credila?
Tax benefit under section 80E is applicable when you apply for an education loan with HDFC Credila. There is no limit on the deduction with HDFC Credila.
Is the loan given on a Secured basis or Unsecured basis?
HDFC Credila provides education loans on both Secured and Unsecured basis.
Suggested: Education Loans Without Collateral
Application Process to Apply for HDFC Credila Education Loan
Questions related to the application process to apply for an HDFC Credila Education loan have been discussed briefly below.
What is the process of application of education loan to HDFC Credila via Yocket?
First, you need to sign up for the Yocket loan assistance followed by submitting your documents to the Yocket loan assistant. As soon as Yocket receives your documents, Yocket will be connecting with HDFC Credila for your education loan. The only thing you have to do is patiently wait for 4 working days and Yocket will get back to you with HDFC Credila’s decision.
How is this process beneficial to you?
Yocket will help you with quick services and benefit you with high approval rates for your education loan. Your needs will be discussed and you will get advice on which loan suits you the best. In short, you have a trusted friend who will speed up your process.
How long does this whole process take?
Yocket values your time, so, it is just a matter of 3-4 working days with Yocket after you have completed submitting all your required documents. In case it is urgent, Yocket can help you get the loan sanctioned within a day, too. However, please don't misuse this provision, this is only in case of emergency situations.
Suggested: When to apply for an education loan?
In this video, Yocket Co-Founder Sumeet Jain talks about the pros and cons of HDFC Credila Education Loan to pursue a masters degree abroad.
All about the Partial Interest Concept
Let us now answer some questions around the concept of partial interest.
What is the Partial Interest Concept?
When the payer faces difficulty in paying the interest amount that is payable monthly, HDFC Credila interest rate for education loan provides a partial interest payment option to accommodate the student's request.
Under the Partial Interest Concept, the amount to be paid every month reduces (i.e. you don't have to pay the complete Simple Interest that is due while you are studying, you just pay a part of it). The remaining part of the Simple Interest is added on with the principal amount which is payable post the Moratorium period.
How is the Partial Interest Concept beneficial?
The Partial Interest Concept benefits your co-borrower by lessening his / her monthly burden. You can pay the remaining amount once you get the job.
Things to Remember when Applying for the HDFC Credila Education Loan
Let us now take you through the things you must keep in mind when applying for an HDFC Credila Education Loan.
What is the Processing fee charged by HDFC Credila?
HDFC Credila charges a minimum HDFC Credila processing fee of 1%. However, if you apply via Yocket, it is negotiable.
How easy is it to get the loan sanctioned?
The process of getting your loan sanctioned is a complete online process and Yocket will just take 4 working days after you submit all your documents. In case you face any kind of difficulty, you can always contact a Yocket representative to get assistance. In case of any prior default, your loan doesn’t get rejected directly but is discussed with you and your co-borrower to understand the issue.
If you have a good academic profile and you are going to a good university, you have a very high chance of approval.
Is there any Margin Money with HDFC Credila?
Margin Money is not required with HDFC Credila.
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Are there any prepayment charges charged by HDFC Credila?
Under HDFC Credila, there won’t be any prepayment charges i.e. if the student is able to pay prior to the repayment tenure, no prepayment penalty is charged. Most of the students pay their loans prior to their tenure completion.
How is the Disbursement process?
It is disbursed to your bank account once you get your education loan sanctioned through HDFC Credila, which in turn, you will have to remit to the university. The disbursement will be according to your university fee-payment schedule which will be in instalments.
HDFC Credila's Education Loan approval letter also demonstrates assured sources of funds for getting I-20 from top US universities or visa for many countries. Moreover, you will have to bear your Forex charges where Yocket can help you with the lower rates. We hope that we answered your every query related to the HDFC Credila loan. You can also connect with our Yocket Loan Assistance program to help you with all the HDFC Credila Education Loan details!