Credilla's Loan Eligibility: University Students Only?

Credila is an education loan provider that works closely with students and parents to identify the most appropriate loan programs for them. The company offers loans to students pursuing higher education in the United States and other countries. Credilla's loans cover the total cost of education, including tuition fees, living expenses, and other expenses. The loan amount is disbursed directly to the university to cover tuition fees and can also be disbursed for accommodation costs. Credilla requires confirmed admission to colleges before disbursement and mandates an earning co-applicant based in India to support the loan application.

Credilla offers loans to students for studying abroad

Credilla (formerly HDFC Credilla) offers loans to students for studying abroad. The loan is designed to cover the tuition fee and other expenses incurred during the course of study. The disbursement process for a Credilla loan typically involves the tuition fee being disbursed directly to the university, while the remaining funds are deposited into the student's personal bank account.

To apply for a Credilla loan, students must provide the required documentation and details, including the loan application number and date of birth, to track their loan status. The loan application process also involves understanding the loan amount, interest rates, origination fees, and processing time.

Once the loan is approved, students can work with their chosen university to facilitate the disbursement process. It is important to understand the disbursement process to prevent any challenges during the education loan journey. The funds are typically disbursed according to the requirements of the student and the university.

Credilla offers a convenient way for students to secure funding for their studies abroad. The loan covers not only the tuition fee but also other expenses, providing a comprehensive solution for students seeking financial assistance for their international education.

It is worth noting that Credilla was previously known as HDFC Credilla Financial Services Limited, and some sources still refer to the company by this former name.

Credilla's loan disbursement process

The Credilla loan disbursement process is simple and hassle-free. It is important to understand the process to prevent any challenges during your education loan journey.

To check your HDFC Credila application status, you will need to enter your Loan Application Number and Date of Birth to track your loan status. The portal will then display your loan status, such as Pending, Sanctioned, Disbursed, or Rejected.

Credilla offers pre-visa disbursement, which means they release funds from an education loan before the student obtains their visa for studying abroad. It is important to note that some lenders may only disburse funds after the student's visa is approved.

The tuition fee will be disbursed to the university, and money for other expenses will be deposited into the applicant's bank account.

Credilla's loan requirements

Credila offers loans to students pursuing higher education. The loan is disbursed in Indian Rupees and is to be repaid in the same currency. The borrower must be an Indian citizen and must have confirmed admission to a college before the disbursement of the loan.

Loan Requirements

To be eligible for a Credila loan, the borrower must meet the following requirements:

• The borrower must be an Indian citizen with confirmed admission to a college.
• The borrower must have an earning co-applicant based in India. The co-applicant can be a relative, such as a father, mother, brother, sister (married), or spouse. The co-applicant's income will be considered in determining the loan eligibility per Credila's credit and underwriting norms.
• The borrower and co-applicant must meet Credila's credit and underwriting norms, which may vary from time to time.
• The borrower must have a strong academic record and meet the minimum academic criteria set by the lending institution. They may have to take prerequisite tests such as GRE, IELTS, or TOEFL.

Documents Required

The following documents are required for the loan application process:

• Self-attested final loan agreement.
• Original KYC documents of the student, co-applicant, and guarantor (if any).
• Two original copies of the completed ECS mandate form signed and stamped by the bank.

Disbursement Process

Credila will disburse the tuition fee directly to the educational institute or through an authorized servicer. The fee will be disbursed in instalments as per the requirement of the specific educational institute. The loan amount related to other expenses, such as living expenses, travel expenses, examination fees, etc., will also be disbursed in instalments spread over the duration of the study.

Interest Repayment

Interest repayment on the loan will start immediately after the disbursement of the first instalment of the loan.

Pre-Visa Disbursement

Credila offers pre-visa disbursement, which means they can release funds from the education loan before the student obtains a visa for studying abroad.

Credilla's loan repayment process

The repayment process for a Credilla loan depends on the type of loan and the borrower's circumstances. Here is a step-by-step guide to the Credilla loan repayment process:

Repayment Holiday or Moratorium Period

During the moratorium period, which is usually the duration of your course plus 6 months to 1 year (or longer in some countries like Germany), you are not required to repay the principal amount. However, you may have to pay the interest amount, depending on your loan terms. This period provides flexibility, allowing you to focus on your studies and manage finances during the initial years of employment.

Repayment Methods

Credilla offers multiple repayment methods to ensure timely payments. You can choose from various online and offline options:

• Online Payment via Credilla Portal: Log in to the Credilla loan portal, navigate to the repayment section, choose your preferred payment mode (Net Banking, UPI, Debit Card, etc.), enter the required details, and confirm your payment.
• Electronic Clearing Service (ECS): Set up an ECS mandate for automatic monthly deductions from your bank account. This ensures your payments are made on time without the hassle of manual transactions.
• National Automated Clearing House (NACH): Another electronic mode for automated payments.

Repayment Tenure and EMIs

The repayment tenure for Credilla loans can be up to 12 years, with flexible options ranging from 10 to 15 years. Once the moratorium period ends, you'll need to start repaying the loan through Equated Monthly Installments (EMIs), which include both the principal and interest components. The EMI amount is calculated based on the loan amount, interest rate, and tenure. You can use an EMI calculator to estimate your monthly payments and adjust the loan amount or tenure accordingly.

Early Repayment and Part-Payments

Credilla allows borrowers to make early repayments or part-payments towards their loans without incurring any prepayment penalties. This can be beneficial for reducing debt and saving on interest costs. By making lump-sum payments towards the principal, you can lower your EMIs or shorten your loan tenure.

Tax Benefits

Credilla offers tax benefits under Section 80E of the Income Tax Act. You can claim a deduction for the interest paid on your education loan for up to eight years, starting from the year loan repayment begins.

Credilla's loan application process

HDFC Credila offers education loans for students pursuing higher education. The loan application process is straightforward and can be done online or through a doorstep service. The loan can cover up to 100% of tuition fees and living costs, with a competitive rate of interest and easy EMIs with a repayment tenure of up to 15 years.

To apply for a loan, students will need to fill out an application form and provide supporting documents. It is important to note that only copies of the supporting documents should be submitted, and they must be self-attested. The specific supporting documents required are not listed, but it is recommended to refer to the official website or a detailed guide for this information.

Once the application is submitted, students can track their loan status by entering their Loan Application Number and Date of Birth on the Credila portal. The portal will display the loan status as Pending, Sanctioned, Disbursed, or Rejected.

After the loan is approved, the disbursement process begins. The tuition fee will be disbursed directly to the university, while the money for other expenses will be deposited into the applicant's bank account.

Frequently asked questions