HDFC Credila Education Loans Overview
HDFC, India’s largest private bank, has one of India’s largest education loan divisions (known as Credila). While the loan amounts are large, Credila’s rates are incredibly high.
Some loans can be issued without collateral, up to Rs. 35 lakhs
100% of all expenses covered
High interest rates - lower rates are available elsewhere
High processing fee
Eligibility for HDFC Education Loan
To be eligible for a Credila education loan, you must:
- Be an Indian citizen, including your co-applicant
- The co-applicant must have an Indian bank account with a cheque facility.
- Show proof of admission in a university prior to receiving the loan.
Enjoy unlimited no fee ATM withdrawals with a student account
Credila Education Loan Interest Rates
The most critical part of every education loan (and any loan, in particular) is the interest rate. The aspect that needs to be taken into utmost consideration while applying for an education loan is its interest rate. HDFC education loan has a floating rate of interest that is the sum of Credila’s CBLR plus Spread. HDFC changes the spread depending on your profile, and as a result the spread can even be zero. It currently varies between 11% to 14.5%. As of the moment, Credila has a lending rate of 12.75% per annum on average.
Credila Education Loan Processing Fee
HDFC Credila charges a higher processing fee than many public banks. The processing fee of HDFC Credila is usually a percentage of the loan amount sanctioned, varying between 1%- 1.25% (plus 18% GST). Thus, if you get a loan sanction of Rs. 40 lacs from HDFC Credila, then the processing fee can be between Rs. 40,000- 50,000, and including the additional 18% GST, you may have a processing fee between Rs. 47,200- 59,000.
Which expenses are covered by education loan
HDFC Education Loan covers 100% of your expenses, from tuition fees, living expenses, travel expenses to expenses such as examination fees, laboratory fees etc.
HDFC Education Loan Lending Limits
The smallest loan available is for Rs. 1 lakh, and can go up to Rs. 50 lakhs.
Unlike many other lenders, you don’t get a moratorium on your loan during your studies. You will have to start paying your loan immediately after receiving the first installment. HDFC Credila loans can go up to a tenure of 12 years.
Education Loan Co-applicant Requirements
If you are applying for a loan with a co-applicant (e.g. your father), they must be an Indian resident with an income. You cannot apply with a co-applicant who has retired.
How to apply for HDFC education loan
Go to HDFC Credila’s website and fill in their online application form. After submitting, you will be contacted by their support team asking for a variety of documents (below). After submission, Credila will review and approve or deny your application. If approved, they will disburse the funds after you have signed the education loan agreement.
Documents required– HDFC education loan
You will need to provide the following following documents to apply for an education loan at HDFC bank:
- Completed Application Form
- Photos – Applicant and Co-Applicant
- Photo ID (Applicant and Co-Applicant)- Provide any one of the following: PAN card, Aadhaar card, Driving license, Passport or Voting ID
- Proof of Address
- Proof of Admission (If available)
- Documents related to your Academics
- Financial statement
- Co-Applicant’s Income Proof
- Immovable Property Documentation (if you need to provide collateral)
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