HDFC Credila Bank Education Loan for Studying Abroad: Interest Rates & Documents

HDFC Credila is one of India’s leading education loan providers operating under the umbrella of HDFC Ltd. The company has served 178,000+ student customers in India already. Today, HDFC Credila education loans that cover 4,600+ institutions worldwide, supporting 3,300 programs in 65 countries. 

Over the past few years, HDFC Credila has emerged as a pioneer in India’s education loan sector. It has continuously refined loan offerings and focused on providing customer-centric solutions.

This guide looks at different aspects of HDFC Credila’s application process, interest rates, eligibility criteria, documents required, and more.

About HDFC Credila education loans 

HDFC Credila is a well-recognized NBFC (Non-Banking Financial Company) known for its customized loan products tailored to students looking to pursue education in specific countries and courses. For instance, students planning to study in Germany often require a significant portion of their loan to be disbursed before the visa application, a need that HDFC Credila factors in effectively. 

HDFC Credila education loan products are designed to accommodate various educational pursuits, from domestic undergraduate programs to international postgraduate studies.

HDFC Credila offers competitive interest rates, flexible loan terms and covers 100% of your tuition, including all other expenses such as accommodation, books, health insurance, and travel. 

Next, let us explore the interest rates for different education loans offered by HDFC Credila.

Also Read: Education Loan for Abroad Studies (Comprehensive Guide)

Interest rate of the HDFC Credila education loan for studying abroad

HDFC Credila offers competitive interest rates for both secured and unsecured loan amounts compared to other NBFCs in India. Here is the tabular representation of the loan plans of the HDFC Credila with their respective interest rates:

Application process for the education loan from HDFC Credila for Indian students

The application process for an HDFC Credila education loan is pretty straightforward. Here’s the step-by-step process:

Step 1: Fill out the application form 

1. Visit the official HDFC Credila website.
2. Navigate to “Apply for education loan” to be redirected to the HDFC Credila education loan application form. 
3. Fill out the application form with your details, including name, email ID, city, state, and mobile number. Also, mention the important course details for which you require the loan, like your country of study, course type, course name, name of the university, course duration, and the required loan amount. 
4. You must also mention details about your co-borrower (your father, mother, sister, brother, or any relative) and collateral details to support your application. 
5. Review and carefully check your details for accuracy before applying.

Step 2: Get support from HDFC Credila 

Once you submit the duly filled application form, the officials will review your application and later contact you to confirm a few details and direct you toward the next steps in the loan process. 

Step 3: Submit the required documents

Next, an HDFC Credila representative will visit your house and collect all the necessary documents and the completed education loan application form. 

Note: Other than the original completed application form, please do not provide any original supporting documents to HDFC Credila when applying for a loan. All copies of the documents provided above should be self‐attested.

Step 4: Wait for a review of your loan application 

Once you submit the documents, officials from HDFC Credila will review and assess your academic and financial background. Then, they will underwrite your loan application. 

Step 5: Wait for the approval of your loan 

You’ll be offered an education loan agreement if your loan application gets approved. However, if your loan application is missing details or if HDFC Credila officials require additional information, they will communicate directly with you. 

Step 6: Get your loan disbursed

Once all your formalities are completed, HDFC Credila will electronically deposit the education loan amount to the relevant loan account. 

Other Banks & NBFCs Offering Education Loan to Study Abroad:

• Union Bank of India Education Loan
• ICICI Bank Education Loan
• Yes Bank Education Loan
• IDFC Bank Education Loan
• Bank of India Education Loan
• State Bank of India Education Loan

Eligibility for the HDFC Credila education loan to study abroad

To get an education loan for studying abroad from HDFC Credila, you must meet the eligibility criteria set by the bank:

1. You should be an Indian citizen.
2. Your co-applicant must also be an Indian citizen.
3. You should have a confirmed seat in the approved institution.
4. Your co-applicant can be any of these relatives (father, mother, brother, sister, or spouse)
5. You and your co-applicant must submit a proof document to verify your relationship.
6. Your co-applicant must have a functional bank account with cheque-writing facilities.
7. Your co-applicant must have a good financial standing and a good credit score.
8. If the above relatives cannot present any collateral, then any one of these relatives – mother-in-law, father-in-law, sister-in-law, or brother-in-law — must provide it.

Why choose the HDFC Credila for a study abroad loan?

HDFC Credila is a top choice among students in India for several compelling reasons. Some of these are:

1. Offers customized loan solutions

HDFC Credila stands out as the first dedicated education loan lender in the Indian market that offers customized loan solutions depending on your choice of program and country of study. Unlike traditional banks, HDFC Credila addresses each student’s profile individually and offers 100% financing for all the education expenses.

2. Competitive interest rates

HDFC Credila has some of the most competitive interest rates in the market for both secured and unsecured loans. For secured loans, the interest rates are 10.15 to 10.75% and unsecured loans have interest rates between 11.75- 12.5%, which is far less than the 13%-15% charged by some private sector banks.

3. Get loans sanctioned before admission

HDFC Credila allows students to get their loans sanctioned before securing university admissions. This pre-approval can be crucial for obtaining a visa and confirming enrollment, giving students a competitive edge in the application process. 

4. Less than 100% collateral requirements

HDFC Credila offers loans with less than 100% collateral requirements. This flexibility helps students access funds without the need for significant assets as security. It’s a valuable option for families that don’t have extensive collateral or strong financial backing to support their loan application. 

5. Repayment tenure up to 10 years

The repayment period of the HDFC Credila Education loan lasts up to 10 years, which offers students a flexible and comfortable repayment experience. This extended repayment period reduces your monthly EMI amount, making repayments more manageable and less stressful. 

6. Get income tax benefits

By choosing HDFC Credila, you can avail of tax benefits under section 80E of the Income Tax Act on the interest paid on education loans. This reduction reduces the overall tax burden, adding financial relief during repayment.

7. Get personalized assistance

HDFC Credila officials offer personalized guidance to students in selecting suitable universities and programs. They help them throughout the loan process, and application to disbursements, with minimal delays so students can focus on their academic goals.

These features make HDFC Credila a top choice for students seeking education abroad. 

HDFC Credila education loan EMI calculator

HDFC Credila has an EMI calculator that helps you break down your total loan amount into monthly EMIs. All you have to do is choose between full-time or part-time study options and feed in the desired total loan amount, duration, and interest rate. 

For instance, let’s say your loan amount is ₹10 lakhs, and the repayment duration is 15 years at the interest rate of 9.55%, then your monthly repayable amount per month will be ₹10,472.

Source 

Documents required for securing a student loan from HDFC Credila

The students must submit the following list of documents along with their application to avail of the HDFC Credila education loan. They are:

Documents required for applicants

• A duly filled and signed application form.
• Two passport-size photos.
• Photo ID (Aadhaar or PAN or Passport or Driving License or Voter ID.
• Proof of admission (if applicable).
• Address proof (Aadhaar or Passport or Driving License or Voter ID.
• Academic documents:
  • XII mark sheets.
  • Graduation mark sheets (if applicable).
  • Qualifying entrance exam results (CAT, CET if applicable).
  • Language proficiency exam results (IELTS, TOEFL, GRE, GMAT if applicable).
  • Scholarship documents (if any).

Documents required for co-applicants

• Photo ID (Aadhaar or PAN or Passport or Driving License or Voter ID.
• Address proof (Aadhaar or Passport or Driving License or Voter ID).
• Two passport-size photos.
• Last 6 months bank statements.
• In case the co-applicant is employed and receives a salary then
  • Latest 3 salary slips or salary certificates.
  • Last 1 years Form 16 or Last 1 years Income Tax Returns.
• In case the co-applicant is self-employed then
  • Last 2 years Income Tax Returns.
  • Last 2 years certified financial statements or provisional certificates duly signed by a CA.
  • Proof of office (any lease deed or utility bill).
• Relationship document between applicant and co-borrower.

Documents of the collateral security (if applicable)

• If immovable
  • Property title deed.
  • 7/12 extracts of the land.
  • Registered sale agreement.
  • Allotment letter by Municipal corporation.
  • Latest maintenance bill and original registration receipt.
  • Previous chain of sale of deed documents.
  • NOC for mortgage from society/builder.
  • Approved building plan.
  • Encumbrance certificates on dates.

Things to remember when applying for HDFC Credila education loans

Here are some important factors you must keep in mind while applying for HDFC Credila education loans to study abroad:

1. Research different loan terms

HDFC Credila education loan offers tailored financial products for students studying in the USA, UK, Canada, Germany, and other countries. However, the loan terms including interest rates, repayment schedule, and conditions vary depending on your choice of country and the program. Hence, collate all the necessary details like the moratorium period, repayment tenure, and interest rates before signing the loan agreement.

2. Understand eligibility criteria

Before applying for HDFC Credila’s education loan, check if you fulfill the eligibility requirements set by HDFC Credila. It also offers loans with less than 100% collateral requirements, so you can apply for the loan even if you or your co-applicant don’t want to pledge collateral. Make sure that other aspects of the eligibility of the loan requirements are met as it increases your chances of getting a loan approval.

3. Moratorium 

The moratorium period offered for the HDFC Credila lasts for 6-12 months. 

4. Tenure

HDFC Credila education loan offers a repayment period of 10 years from the day after your loan’s moratorium period ends. 

You can get an idea of the monthly repayable EMIs beforehand by using HDFC’s monthly payment amount (EMI) calculator. 

However, it is important to note that the longer the tenure, the lower the amount, the greater the interest that needs to be repaid. Hence, always plan ahead of time for the repayment of the loan. 

Collateral rules for HDFC Credila education loans

HDFC Credila education loan sets forth rules based on the type of collateral provided. They are classified into two main categories:

• Movable assets: This includes financial assets like fixed deposits, government bonds, and other liquid securities that can be pledged to secure a loan.
• Immovable assets: This includes financial assets such as flats, houses, bungalows, non-agricultural land, or shops. 

HDFC Credila does not accept any jewelry such as gold as collateral for education loans.

Borrowers must provide other types of securities like land, houses, shops, or other real estate as collateral. These properties must have clean titles and appropriate documentation. For land, you must have 7/12 extracts, a registered sale agreement along with a society share certificate, and an original registration receipt to confirm the registration of the sale agreement. 

You must also provide an allotment letter from the municipal corporation or authorized government entities like MHADA, CIDCO, HUDA, DDA, JDA, GIDC, etc to support your application.

So it’s clear how navigating the education loan process is an overwhelming task. You’ll need to look into different loan terms such as interest rates, repayment tenure, repayment EMIs, and processing fees. This can be exhausting and even a bit confusing. 

That’s where FundRight comes in. FundRight offers a simple process to help you select the best education loan to study abroad. 

Here’s how FundRight works:

1. Register on FundRight by providing your personal information and financial information.
2. Within 2 days, you will receive offers from 15 lenders, including HDFC Credila.
3. Compare the loan offers based on different criteria, and you can even get help from FundRight’s financial experts to choose the best option.
4. Upload all your documents securely on the portal.
5. Once submitted, wait for the loan to get approved in less than 10 days.

Over 60,000 students have successfully found their ideal educational loans with FundRight. With 25’ Spring admissions just around the corner, now is the best time to sign up on FundRight. 

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