Educational loans for study in India and abroad at Credila, a subsidiary of HDFC Ltd.


This article deals with the full details of educational loan provided by Credila, a non-banking financial company, which is a wholly owned subsidiary of the HDFC Ltd. The need for a student to avail an educational loan and how Credila helps students to get educational loans in a quick and convenient way is explained in the article. Guidelines for filling the application are given in detail. The list of documents to be submitted is given. Customer service and other facilities are provided by Credila.

Why should a student take an educational loan


Studying abroad is the dream of most of the students in India. This is the one time of opportunity that comes in the life of students, which they must avail. An educational loan is a boon to the students of the middle class and the economically weaker sections of the society who wish to join higher courses of study in colleges and universities in India and abroad. Even students from rich families will not hesitate to avail an educational loan simply because they want to feel independent and want to finance their education without depending on their parents' help. An educational loan is quite convenient for the students since they need not to repay the loan during their course of study except the interest part of the loan. The students have to repay the principal part of the loan only some time after the completion of their courses of study by which time they are most likely to get some job or establish their own business.

Why should students get their education financed by Credila


Before we discuss why students should get their loans financed by Credila, let us briefly know what is Credila., As its name indicates, Credila is the premier financial institution, which specialises in providing educational loan to the students to pursue their studies in the foreign as well as the Indian colleges and universities. Credila is a non-banking financial company registered with the RBI and is a wholly owned subsidiary of the HDFC Limited. About one lakh students and parents have already sought educational loan facilities of Credila. Credila has funded students studying at various Indian and foreign universities and institutes such as University of Oxford, Columbia University, Purdue University, Cornell university, Pune University, Bangalore Management university and many more.

Credila offers educational loans at competitive interest rate of 13.5 % and the loan is delivered at home. There are flexible terms of repayment. Credila does not ask for any margin money like many other lending institutions do and loan. Credila sanctions educational loans before admission, and as such, it is unique in this respect. Web enabled billing and services are offered by Credila. Credila accepts multi-city co-borrowers since the applicant and the borrower may be residing at different places. At Credila, the students get their loan sanctioned even before getting admission to college or a university or getting their I-20 in their hands. In fact, the loan sanction letter from Credila gives a proof of the assured source of funds to the students for getting an I-20 or visa.

Students can easily find out the quantum of loan that they will get from Credila even before applying for admission to their MBA colleges. Credila removes the apprehension of students by making them confident that their admission will not be denied due to the delay in sanction of their loan. It takes a very short time to complete the loan formalities at Credila. The representative from Credila is always available for providing any help to obtain Credila educational loan. The educational loan from Credila is very fast and convenient and is even delivered at the doorsteps of the students. The usual challenges, which the students face while securing an educational loan are taken care of by Credila. Credila provides the best customer service from the time the loan is applied until the repayment of loan. Students can repay the Credila loan from overseas.

Detailed procedure to get an educational loan from Credila


Given below is the detailed procedure to get educational loan sanctioned from Credila and to make the students aware about the various aspects of the educational loan from Credila:

Eligibility for Credila's educational loan


The Credila borrower and the co-borrower must be Indian citizens. The borrower must be aged 18 years or more. The co-borrower must have an account with a cheque facility in any bank in India. Though the educational loan can be sanctioned even before admission, a confirmed admission letter is a pre-requisite for the disbursal of the loan. Both the borrower and the co-borrower have to sign the loan with the co-borrower being the primary debtor.

What costs are covered by Credila educational loan


The Credila educational loan covers all the tuition fee of the college / university. Up to 75 per cent of other expenses that include the cost of books, living expenses etc. as levied by the university of the college are covered by the educational loan. Credila educational loan also covers up to Rs.50,000 for travelling from India to abroad.

Minimum and maximum limits of educational loan from Credila


The minimum limit of Credila educational loan is Rs. 1 lakh and the lifetime maximum loan limit is Rs.20 lakh.

Calculation of rate of interest on Credila's educational loan


The rate of interest on Credila educational loan is a floating rate of interest linked to Credila's Benchmark Lending Rate (CBLR) calculated using simple interest rate. Floating rate of interest is calculated as (Credila's CBLR + Spread) per cent per annum.

Loan disbursement procedure of Credila's educational loan


Credila's educational loan is disbursed in Indian rupees. Credila disburses the educational loan directly to the educational institute where the student takes the admission. Based on the specific requirement of a particular institute, Credila disburses the tuition fee in instalments. Credila also undertakes to disburse the other expenses in instalments, which are spread over the period of the course of study.

Repayment terms of Credila's educational loan


The repayment of interest on Credila's educational loan will commence immediately after the first instalment of loan is disbursed. Repayment of principal amount will commence after 6 months of completion of studies of the borrower or 3 months after borrower getting an employment of starting a business or 3 months after discontinuation of the studies by the borrower, whichever is earlier. Both the principal and the interest are payable in 90 instalments. Monthly repayment amount is deducted from the bank account of the borrower or the co-borrower as the case may be, using electronic clearing system (ECS). Post dated cheques (PDC) are collected as security cheques from the borrower or the co-borrower.

Guidelines for completing the online form to get education loan from Credila


Application for Credila's educational loan can be sent from anywhere in India. Application can be made even before confirmation of admission. Below are the guidelines for filling up the online application for educational loan from Credila. The online application is available at Educational loans from Credila, a subsidiary of HDFC Ltd

Part A of the application form
In the ‘A’ part of the online application, the students must fill First Name, Las Name, Current Address, State, City, email ID, Mobile no., Last College or University attended, Name of the last course completed, Marks obtained in the last course.

Part B of the application form
In the ‘B’ part of the application the course detail for which the loan is needed to be filled up giving the country of study, the type of the course to be undergone, the duration of the course, the name of the course, University of the college where the course is to be pursued, the time when the loan is required and the amount of the loan required in rupees.

Part C of the application form
In the Part ‘C’ the details of the co-borrower are to be provided. A co-borrower can be a relative with good income who can support the education of the borrower for loan. Typically it can be father, mother, brother, sister, spouse, cousin, paternal uncle or aunt, maternal uncle or aunt, grandfather or grandmother. Relationship of the co-borrower with the student has to be mentioned. The co-borrower’s first name, last name, date of birth, state, current address, mobile no, landline number, city, email address , profession, designation, name of the employer if employed or business name, net monthly income or salary etc has to be filled in.

Part D of the application form
In the Part ‘D”, the details of the collateral security are needed to be filled up. Collateral security should be such so as to support the loan amount as a collateral guarantee. The security can be in the form of a flat, house, non-agricultural land, fixed deposits etc. An adequate collateral security helps the loan applications to be approved fast. The option whether the collateral security can be provided has to be answered in ‘yes’ or ‘no’.

Part E of the application form
The part ‘E’ of the application form requires contact preference. It poses questions like how the student heard about Credila. The applicant has to fill up the information like the best day of the week to call on him or her, the best time to call on the applicant or whether the Credila’s representative should visit the applicant. The applicant can give additional information, if any , in the text box provided. Lastly, the candidate has to agree to the terms and conditions for educational loan from Credila.

Most of the information in the online application has to be filled up from the drop down lists and the radio buttons provided. The fields which are compulsorily required to be filled up are marked with * (asterisk) mark. The applicant can click on the help symbol (?) wherever it appears in the application form. The applicants can call for help at 1-800-209-3636 or click on the Live Chat icon or email to loan@credila.com .

Supporting documents to be submitted for educational loan from Credila


The following supporting documents for Credila's educational loan are required to be submitted while applying for an educational loan from Credila. All the documents must be self-attested before submission. No original documents need to be submitted at the time of applying for the loan except the original application. Here is the list of the documents to be submitted along with the fully completed and signed loan application form that can be downloaded in PDF format from Credila's official website.

Identity proof of the applicant and co-applicant

  • Two Passport Size Photos - Applicant and Co-Applicant, one set to be pasted on the Application Form and second set to be affixed (stapled) to the Application Form
  • Photo ID - Applicant and Co-Applicant (Any one of the following):

  • PAN Card

  • Passport

  • Driving License

  • Voters ID

  • Employee ID

  • Photo ID issued by the Central Govt. or State Govt.

  • Bankers Verification/ Bank Passbook with photograph of account holder attested by bank


Residence Proof - Applicant and Co-Applicant (Any one of the following)

  • Passport With Address

  • Bank Statement With Address

  • Driver's License with Address

  • Utility Bill (Not older than 3 months)

  • Telephone Bill (Not older than 3 months)

  • Ration card

  • Latest LIC Premium Receipt (Not older than 3 months)

  • Leave and License Agreement supported with an address proof / utility bill in the name of the landlord

  • Voter's ID card


Academic Documents of Student

  • Marksheet/Certificate of 12th Exam

  • Marksheet/Certificate of Subsequent Years of Education e.g. BE, BCom, BSc, etc.

  • Marksheet of Any Entrance Exam Taken e.g. CAT, CET, etc. (If applicable)

  • GRE/GMAT/TOFEL/LETS, etc Marksheets For US Applicant

  • Scholarship Documents (if applicable)

  • Proof Of Admission (If available)

  • Printed Admission Letter From the Institute on its Letterhead With Institute's Address

  • I-20 Form for the USA Applicant

  • Last 8 Months Bank Statements of Co-Applicant (If more than one bank account, provide copies of all) Make sure to include the bank statements of the Bank Account where Salary or Business/ Professional receipts are credited every month.


Income Proof of Co-Applicant

  • In case of Salaried Employee (All the following)

  • Latest 3 Salary Slips or Salary Certificate on Employer's Letterhead

  • Last 2 year's Form 16 from Employer or Last 2 Year's Income Tax Returns

  • Any Other Income Proof That is Not Reflected in the Above Documents

  • In case of Self Employed or Professional (All the following)

  • Last 2 Year's Income Tax Returns

  • Last 2 Year's Certified Financial Statements or Provisional Financial Statements Duly Certified by CA

  • Proof Of Office (any one of the following, Lease Deed, Utility Bill, Title Deed, etc.)

  • Any Other Income Proof That is Not Reflected in the Above Documents

  • If, Collateral - Immovable Property (Flat, House, Non-Agriculture Land) (All the Relevant Documents from the Following List)

    • Property Title Deed

    • 7 / 12 extracts in case of land

    • Registered Sale Agreement Along With Society Share Certificate

    • Original Registration receipt for the above agreement

    • Allotment Letter By Municipal Corporation / Authorized Govt. Authority Like MHADA, CIDCO, etc.

    • Commencement Certificate from Municipal Corporation/Council

    • Previous Chain of Sale Deed establishing title

    • Any other document as prescribed by our empanelled lawyers or chartered engineers from time to time


    Some other services and facilities provided by Credila


    The Credila provided the following other services and facilities to help its educational loan customers:

    Customer service and chat with experts


    Credila provides excellent customer service to the existing service by clinking on the link for customer service on Credila's website. Credila conducts several web-based seminars for its clients. Credila offers a very useful chat with Credila's expert team to help its customers. Participants are given the opportunity to nominate guest experts for seminars held online. Credila's customers should contact the Credila management at loan@credila.com.

    Links to other resources available on Credila's website


    The official website also provides links to educational institutes where the students can take admission. There are links for scholarship information, financial planning for the students, examination results, alumni network. There is also a link to an excellent book on Indian Higher Education by Mr. Pawan Agarwal.

    Web-based seminars at Credila


    Credila conducts web-based seminars on subjects like 'Tips to know before going to the USA', 'Admissions to the universities in the US' etc. Some of the upcoming seminars are: life in the USA as a student, Scholarships in the US, US culture, travel arrangements to the US, Sharing experience of students who have studies in the US, doing MBA in the US, getting H1 visas on completion of studies in the US, application requirements to study in the US, managing finances for study in the USA, preparing for the entrance exams, medical studies in the US, career after obtaining US degrees and US experience in Indian and foreign corporate world. The simple questions like living with vegetarianism in the US, why one should study in the US, how to choose a school in the US and any frequently asked questions relating to web seminars are answered. Whenever a seminar is announced, the students desiring to attend seminars have to register by clicking on the link for this purpose. If the seminar is already in force, the students can click on the link for joining the seminar. This facility at Credila is very helpful to the students, which is not usually provided by the other lenders of the educational loans.


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Comments

Author: Sukhdev Singh04 Apr 2012 Member Level: Gold   Points : 0

The same bookmark at another place in the article has been removed.



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