HDFC Credila Education Loan
A subsidiary to the Housing Development Finance Corporation Limited (HDFC Ltd) that was established in 1977, HDFC Credila Financial Services was set up solely for the purpose of providing specialized education loan schemes, thus becoming India’s first dedicated Education Loan Provider. The sole purpose of such an arm is to contribute towards Transforming Lives and Building the Nation. Till date HDFC Credila has catered to more than thousands of students from India in over 2100+ institutes across 35+ countries.
Overview of variants in education loan schemes offered by HDFC Credila
|Funding Solutions for Studies in India
- Loan facility for Indian national students who have secured admission to higher education in India for courses such as Engineering / MBBS/ MBA/ MCA/ Graduation/ Doctoral programmes etc.
|Funding Solutions for Studies in USA
- Loans for Indian national students who have secured admission to MS and MBA in universities across USA.
|Funding Solutions for Studies in Abroad
- Loan scheme for Indian national students wanting to pursue and having secured admission for post graduate courses in countries other than USA.
|Executive MBA courses for Working Executives
- Loans for Indian national students having secured admission by way of merit i.e., through CAT / GMAT / XAT scores for Executive MBA in any reputed and premier institute of India
Further details of HDFC Credila’s Education loan schemes mentioned in above table
1. Funding Solutions for Studies in India
HDFC Credila’s Education loan scheme for studies in India is for Indian national students who have secured admission to higher education courses such as – Graduation/ Post Graduation/ Engineering/ MBBS/ M.Tech/ MD/ MBA/ MCA/ Diploma/ in colleges/ universities/ institutes across India recognized and approved by the academic bodies such as UGC/ AICTE/ ICMR/ Central and State Governments. The company provides specialized loan schemes in accordance to the course period.
For Engineering –
Securing admission to one of the premier technical / engineering institutes in India can be an arduous process and once secured, the fees at such institutes can be way more than families of the students can afford.
HDFC Credila’s Education loan for engineering covers both tuition and living costs.
For MBBS / MD –
One of the most expensive education in India is that of medical sciences. This is especially true for private medical colleges in India that raise the cap on their fees mostly every year.
There is no maximum limit on the quantum of loan for medical studies. Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, etc.) are covered under the scheme.
No margin is applicable towards the loan amount; however, the loan must be fully collateralized with tangible security of equivalent value. The parent / guardian of the applicant must be signed up as co-borrowers towards the loan.
The scheme offers flexibility for the applicant towards choosing the repayment tenure which would result in reduction of burden.
For MBA/ PGDBM/ PGDM/ PGPM –
The scheme is applicable to Indian national students who have secured admission to MBA/ PGDBM in institutes of repute and recognized by the academic bodies of India. The candidate must have secured admission by way of CAT / GMAT/ XAT scores. The loan scheme also provides exclusive offers for NMAT takers. Follow the link – https://www.hdfccredila.com/india/MBAPGDBMetc.html
Again, there is no maximum ceiling on the quantum of loan amount to be availed, but will have to provide for collateral security equivalent to the value of loan.
There are, however provisions for non-collateralized loans applicable to select courses of select institutes at affordable interest rates.
The loan shall cover all expenses ranging from tuition fees, living costs to examination fees etc.
For Other Courses –
Other courses such as Graduation / Post Graduation in different fields, other allied courses etc are also covered under HDFC Credila’s Higher Studies in India Education loan scheme.
As applicable for other courses described above, there is no maximum cap for the quantum of loan amount that the student wishes to avail. The scheme offers flexible collateral norms for courses of select colleges / universities with no margin required.
All expenses ranging from tuition fees, hostel charges, mess charges and other course related expenses are covered.
2. Funding Solutions for Studies in USA
The loan scheme is available to students wanting to pursue MS / MBA courses in any university across USA. The loan can be applied for and availed even before the confirmation of admission as this will help in proving the condition set by USA universities regarding ‘Availability of Liquid Funds.’ The Education Loan Sanction Letter issued by the company will act as proof for the same.
There is no upper limit applicable on the quantum of loan of availed, however the loan amount will have to be backed by 100% collateral security, co-borrowers (parents / guardian), and third-party guarantee.
There are also provisions for unsecured loan schemes but are applicable only for select courses and select universities (mostly universities of high reputation).
Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, travel expenses for studies in abroad, etc.) are covered under the scheme.
3. Funding Solutions for Studies in Abroad
Apart from funding for studies in universities across USA, the scheme offers facilities for students wanting to pursue specialized higher education courses from universities across different countries. Some of the most popular destinations apart from USA are Germany, France, UK, Russia, New Zealand, Australia, Singapore, Dubai, Canada, Ireland etc. where students prefer to opt for further studies. Few reasons for students to opt for these countries would be –
- Many universities in these countries offer varied courses that cater to the needs of the students
- Less to literally no tuition fees in these universities make up for cheaper and cost-friendly studies and career options
There is no maximum limit on the loan amount to be availed and the amount will have to be backed by 100% collateral security, co-borrower and third-party guarantee.
Almost the entire expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, travel expenses for studies in abroad, etc.) are being covered.
As the loan facility is of 100% financing, there is no margin amount applicable.
The loan can be availed by students even before receiving the confirmed admission letter and receipt of visa. For countries like Germany and Canada, almost 70% of the loan amount will have to be disbursed before the applicant sits for visa process.
4. Executive MBA courses for Working Executives
The loan facility is available for students wanting to pursue and have secured admission towards Executive MBA course in any of the premier institutes in India. These premier institutes would include – IIMs, ISB, XLRI, etc.
The loan scheme is applicable to both residential and non-residential management programmes.
With no cap over the amount of loan that can be availed, it facilitates 100% coverage of expenses including tuition fees, hostel charges, mess charges, examination fees, project / research costs, study tours and any other allied expenses relating to the course during the entire course period.
As there is 100% financing of loan, there is no margin applicable while at the same time, the loan will have to be collateralized, and backed up by co-borrowers (parents / guardian)
The loan facility provides for attractive interest rates according to the amount availed and the course period.
Repayment Period –
With regards to the repayment tenure of the schemes mentioned above, the duration of repayment is usually up to 10 years after the completion of course period. However, the same can be extended according to the quantum of loan availed (if greater than ₹20 lacs).
Documents Required for the above loan schemes
The following documents are required for availing loan at HDFC Credila –
- Duly filled application form – Click Here
- Two sets of passport size photographs of both applicant and co-borrower
- SSC, HSC, Graduation (if applicable) marksheets
- Entrance exam scorecard sheet – CAT, GMAT, GRE, XAT, NMAT, etc.
- Copies of scholarship certificates (if any)
- Admission proof copy (offer letter / admission letter) of the course applied to (mandatory for studies in India and if available in case of studies in abroad)
- In case of salaried persons –
- Copies of latest 3 salary slips
- Copies of previous 2 years of Form 16 / recently filed Income Tax Return
- In case of non-salaried persons –
- Address proof of business (if applicable)
- Copies of previous 2 years of Income Tax Returns
- Copies of latest 2 years of financial statements of the business duly verified by Chartered Accountant.
- Documents relating to collateral and tangible security
- PAN (Permanent Account Number) Card Copy for identity proof of applicant/ Co-borrower (parent)/ Guarantor (self-attested)
- Aadhar (UID) Card copy of student /co-borrower (parent)/guarantor for address proof (self-attested)
- Passport Copy (mandatory for loan availed towards studies abroad)
- Driving License copy (if any)
- Voter’s ID card issued by Election Commission of India
- Bank account statements for the 8 months of Parent / Co-borrower/ guarantor
How to Apply for the loan
Online process – The above-mentioned loan schemes can be applied via online – https://www.hdfccredila.com/apply-for-loan.html, through the website of HDFC Credila Education Loan Company.
The applicant will later have to visit the nearest office of the company with the supporting documents duly attested for completion of the loan application process.
Although no insurance cover is made mandatory by the company for its education loans, it is advised that the applicant enquires about the same at the office of HDFC Credila before finalizing the loan facility.
Many banks and NBFCs providing education loans are now resorting to include insurance on the same. This subsequently raises the interest rates on these loans.
Few major reasons for inclusion of insurance cover are –
- Covering of default risk rising due to poor job markets
- Exchange rate risks in the case of overseas education loans
- Below satisfactory campus placement records
- Possibility of discontinuation of course by student or debarring by institutions on disciplinary or academic grounds.