Applying to your dream University and worried about the finances? Well, you shouldn’t be as HDFC has made it easy to borrow money for higher studies. Want to know how? Then read this blog about HDFC Credila education loan and start your application for a student loan.
Table of Contents
Ques.1 Can I get a 100% loan to study abroad?
Ques.2 What is the maximum amount of HDFC education loan?
Ques.3 What is the processing fee for HDFC Credila abroad education loan?
Ques.4 How much time does HDFC Credila take to approve a loan?
Ques.5 What if the student taking a HDFC study loan gives up studies without completing their programme?
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:
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.
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.
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.
Do You Want to Save More On Your Education Loan With Lower Interest Rates?
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.
If you are studying in India, then the following are the criteria for you:
If you want an HDFC education loan for abroad, then the criteria for you are as follows:
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:
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:
|
Type of Loan |
Features |
|
Education Loan for Indian Education |
Loans up to INR 150 lakhs |
|
Education Loan for Foreign Education |
Loans offered for over 2100 universities, 950 courses across 35+ countries |
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:
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:
|
Feature |
Description |
|
Loan Amount |
Up to INR 45 Lakh |
|
Rate of Interest |
10.50% – 12.25% |
|
Processing Fees |
0.75%-1.25% |
|
Processing Time |
7-10 days |
|
Margin Money |
NIL |
|
Moratorium Period |
Course duration + 1 year |
|
Repayment Tenure |
12-15 years |
This is all about the HDFC education loan without collateral and with collateral. Now, take a look at the interest rates for these loans.
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.
|
Education |
ROI |
Interest Amount (Rs.) |
|
200,000 |
12.50% |
25,000 |
|
400,000 |
12.50% |
50,000 |
|
600,000 |
12.50% |
75,000 |
|
1,000,000 |
12.50% |
1,25,000 |
|
1,500,000 |
12.50% |
187,500 |
|
2,000,000 |
12.50% |
250,000 |
Below is the detailed description of HDFC Education Loan Interest Rate:
|
Interest Rate |
9.50% (in India) |
|
Calculation |
The interest rate will be calculated using the Simple Interest Rate |
|
Floating Interest |
Floating rate of interest to be (HDFC Credila’s CBLR + Spread)% per annum |
|
Determination of Spread |
Student’s academic background |
The HDFC education loan interest rate can change as per the bank requirements. Hence, consult the officials to know more about these.
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:
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.
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:
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?
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
Yes, you can get a 100% finance for a range of courses that cover the expenses of studies along with a competitive interest rate. Some of the banks offering 100% credit include HDFC
The HDFC education loan is available for a sum of up to INR 1.5 Cr and the non collateral education loan for abroad is offered for an amount up to INR 50L for specific institutes.
The processing fee for a HDFC Credila abroad education loan ranges between 1% and 1.25% of the total loan amount.
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.
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:
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