Credila is a non-deposit taking Non‐Banking Financial Company (NBFC), and is a subsidiary of HDFC Limited It is also India's first education loan specialist, the only lender which is exclusively focused on education loans.
Credila offers education loans for:
Being a specialised lender for student loans, Credila has invested quality time and resources to set up appropriate systems, processes and know–how related to the education industry. Credila has numerous databases on education sector. Our credit scoring model for the approvals of loans is designed specifically for student loans. At Credila, therefore, we understand problems, challenges and issues faced by students and their parents. Credila's objective is to work closely with students and parents to try to identify the appropriate education loan programmes for them.
Credila offers some unique education loan features such as:
We have a technology, Internet and phone–driven application processing system. We also have teams spread across cities in India, that work with you to collect application forms and supporting documents from your doorstep.
Credila can fund up to 100% of education and living expenses.
Typically, banks do NOT fund all the cost of education. Not only is margin money required, but typically banks sanction the loan only for an amount that is dependent on the value of the collateral, even if it's lower than the total cost of education.
Credila can fund up to 100% of the expenses. No margin money required.
Banks require anywhere from 15 to 30% as margin money.
Currently, Credila is the only lender in India that can offer more than Rs. 20 lacs of education loan.
Banks do not currently offer education loans exceeding Rs. 20 lacs.
Credila is the only lender in India that can offer loan approval even before the student gets a confirmed admission letter from any academic institute.
Having confirmed admission is mandatory while applying for an education loan at banks. Most banks won't be able to even process the education loan application before confirmed admission.
Credila can offer loans with repayment terms of 15 years for select cases.
Most banks typically offer a 7 year repayment period.
Credila offers education loans as per the requirements of the student, once the creditworthiness of the student is established.
Banks typically have a standard product without much flexibility.
Credila offers doorstep service while applying for an education loan.
Banks typically require borrowers to visit their branches for their education loan needs.
Credila is the only lender in India that offers the option to repay the loan from the USA in US dollars.
Banks do not offer this benefit.
There are no hidden charges! All charges & fees are communicated upfront by Credila.
Legal fees, registration charges etc. are to be paid separately by the borrower while taking an education loan from banks.
Credila does accept partial collateral, on evaluation of the loan application.
Generally speaking, most banks require collateral whose value exceeds that of the loan amounts.
Credila can accept multi–city co–borrower(s).
Most banks typically require co–borrower(s) to be in the same city as the bank branch from where the loan is being availed of.
All legal fees, registration charges etc. are included in Credila's origination fees.
With most banks, legal fees, registration charges are to be paid in addition to the processing fees charged.
Generally, there is no need to open a new bank account.
It is mandatory to have an account with the bank for some period of time, prior to applying for a loan.
Not applicable
Cooperative banks can only give loans to their members. Therefore, there is an additional hidden cost for the students and parents. Parents are forced to buy shares of the cooperative bank and hold them. Without this, the borrower doesn't become eligible for any loan.
Collateral security can be less than 100%.
In most cases, collateral security has to be around 100% or more.
No registered mortgage.
Registered mortgage is required.
Credila offers extremely competitive interest rates.
Banks have a range of interest rates.
Absolutely not! Credila is a non–deposit taking Non–Banking Financial Company (NBFC). Credila Financial Services Limited itself gives education loans. We underwrite loan applications on their merit and if sanctioned, disburse loans ourselves.
Some highlights:
Credila's education loan interest rates are very competitive.
Credila does not have an upper limit on the loan. We processes loans exceeding Indian Rupees 25,00,000 also, subject to the case meeting Credila's credit and underwriting norms as applicable from time to time.
A loan application is scrutinised on multiple factors such as:
The applicant needs to be:
The co–applicant needs to be:
A co–applicant is required for all full time courses. Here are a few points to be noted about co-applicants:
No. Co–borrowers must be either a family member or a relative as described above, and needs to be an earning member.
Credila is one of the very few lenders who will finance 100% of the cost of education. So, you don't have to pay any part fees. If sanctioned, you won't even need any margin money.
Collateral should be any one of the following assets:
Credila has a student–friendly education loan application process:
The supporting documents we require are standard documents. Please Click Here to get the list of documents.
Credila's Student Support System supports Microsoft Internet Explorer Version 6.0 or higher.
Login instructions for students studying in India:
Your Login ID: Please enter your Loan Application Number. (Your Loan Application Number starts with 'A'. e.g. A0806120007)
Your Password: Your password will be the student's date of birth followed by the PAN number of co-applicant 1.
For example: If the student's DOB is 1st Jan 1981 (DD/MM/YYYY) and PAN number of co–borrower 1 is ACUPN8943J, then the password will be – 01/01/1981ACUPN8943J ('/' is included in the password).
You are the only person who can access your account, as your account is password protected. Further, only authorized employees of Credila access your account information on a need–to–know basis for executing your instructions. We recommend that you do not share critical information such as your login and password details with anyone, and change the same at regular intervals to ensure account safety.
Credila's Student Support System does not establish any web 'cookies' during your session. Hence no one will be able to access the service without entering the valid login ID and password. The sessions will automatically time out after 10 minutes of inactivity and you will be prompted to login again. However in the interests of safety we suggest that you end your browser session before leaving your computer, especially if on a shared computer.
If you forget your password, you can obtain a new password from Credila by clicking on the 'Forgot your password' link. Here you will be asked for a secret question or hint, and Credila could also ask for some additional information either online or offline (either via a telephone call or by meeting with you in person). On providing the correct information, Credila will assign a new password to you that would be sent to your primary email address. Additionally, to safeguard against any fraud, as soon as you login the next time, you will be asked to change your password from the one assigned to you by Credila.
Yes, a moratorium/ repayment holiday is available for selected courses. Please do contact your Relationship Manager for more information.
You have the option of servicing the interest during the moratorium. A repayment moratorium (also called a repayment holiday) is the course study period + 1 year, or 6 months after the student gets a job/starts earning – whichever is earlier.
A repayment moratorium (also called a repayment holiday) is the course work period + 1 year, or 6 months after the student gets a job or starts earning, whichever is earlier.
Credila's unique education loan offers the flexibility of paying only the interest (PMII) during the course period and principle plus interest (MI) after the completion of studies and grace period.
Credila offers a floating rate of interest.
You have the option of repaying the loan through ECS (ECS stands for Electronic Clearing System). It is a mode by which funds are automatically debited to your bank account every month, saving you the hassle of having to make payments personally every month.
Via ECS, you have the option of swapping – whereby we can directly debit the account for PEMI/EMI amounts on due dates, from another bank account that you authorise us to debit.
Yes. It is left to the choice of the individual customer and the ECS user to decide these aspects. The mandate can contain a ceiling on the maximum amount of debit, specify the purpose of debit and validity period of the mandate.
No. There is no value limit on the amount of individual transactions that can be collected via ECS debit.
No, you need to give a separate ECS mandate form for each bank account that you wish to use.
As explained in the ECS (Debit Clearing) process above, your account generally gets debited on the eleventh working day from the start of the ECS cycle. We strongly request you to keep your account funded on and after the 'pay on' date.
You can remit the defaulted payment through cheque/ DD
When we receive a payment, we usually apply it first to late fees (if any), followed by unpaid accrued interest, and then to the principal balance of the loan amount. (The order of the application may vary depending on the requirements of your Promissory Note.) Interest on your loan(s) accrues daily, so the total amount of interest you will pay during repayment can vary depending on when your payments are received. It is to your advantage to send your payments on time, or early, to avoid paying additional interest and late fees.
We automatically allocate your payments across your loans; your payment will go first to any delinquent loans in the loan group (loans with the oldest delinquency will be paid first). Once all loans are current or at the same delinquency level, your payment will be prorated to each loan in the loan group according to its monthly payment amount. After the Current Monthly Payment Amount Due and Past Due Payment Amounts (if applicable) are satisfied, or if no payment is due (for example, if your loans aren't yet in repayment), your payment will be allocated among the loans in the loan group, prorated based on each loan's outstanding balance. If you do not pay the total amount due on the statement, every loan in the loan group may become delinquent, may be reported to the consumer reporting agencies, and may be subject to at least a minimum late fee.
If your payment is received without a remittance slip, and the payment matches the payment amount on your statement, it will be allocated as described above. If, however, your payment does not exactly match the payment amount on your statement, it will be allocated across all loans, including loans in different loan groups that have the same payment address as the address to which you mailed your payment.
Once we allocate a payment to a specific loan or loans, payments are applied based on the terms of each loan's promissory note, usually first to fees, then to outstanding interest, and then to principal.
In such a scenario, the extra funds will be applied to your balance. Unless you make your payments through auto debit, extra payments will reduce the amount of any future payments. For example, if you pay an extra Rs.50 and your regular monthly payment amount is Rs. 100, your next payment due will be Rs. 50. If the extra funds are more than the next monthly payment(s), your billing statement(s) will show zero due. Even if you have a zero amount due on your billing statement, continuing to make payments will reduce your total cost of borrowing.
It is the responsibility of the borrower to understand that availing a loan is a legal obligation. If the borrower fails to meet the terms of the loan agreement, then the lender has the right to take legal action against the borrower to recover the balance of the debt.
When the borrower has not paid monthly loan repayment for more than six months, the borrower is in default. It's always best for a borrower to avoid default because negative records will stay on their credit bureau reports.
However the borrower can probably prevent these consequences by being proactive and taking the steps given below.
It is therefore very critical for borrowers to make sure all repayment obligations are met in a timely manner. It is advisable to keep a close check on your payment schedules, in order to avoid a negative impact on your – credit bureau score.
An – education loan is usually the first loan availed by –a student –and therefore –is a great opportunity to build a –good –credit history –and credit bureau score. Positive and timely repayments can help students build excellent credit history, which can in turn help them get other loans at better rates in the future.
Before approving any loan, all banks and lenders check CIBIL scores of the customers. CIBIL's member institutions regularly send updated credit details of their customers to CIBIL.
This contains, but is not limited to, credit card spending and payments, loan amounts and payments, mortgage loan amount and payments and other credit borrowings from all member institutions. Member banks/ financial institution submit this information in a regular manner.
CIBIL uses these details to create a Credit Information Report for each customer.
CIBIL also gives a Credit Score, based on the credit information report.
When you apply for credit – say, a new loan or a Credit Card, the member institutions request CIBIL for details of your Credit Information Report.
Based on your credit information report & credit score from CIBIL they decide on whether to offer the product, the amount of loan & interest rate to offer to you.
Credit Information Bureau (India) Ltd; CIBIL is India's first Credit Information Company, also commonly referred to as a Credit Bureau. CIBIL collect and maintain records of individual's and non–individual's (commercial entities) payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks/ financial institutions and other lenders on a monthly basis. –Using this information a Credit Information Report (CIR) and Credit Score is developed, enabling lenders to evaluate and approve loan applications. A Credit Bureau is licensed by the RBI and governed by the Credit Information Companies (Regulation) Act of 2005.
Your credit history, other than your income, is the single most important tool used by a loan provider to evaluate your application for any loan or credit card application. Naturally, it's important that you understand your Credit Information Report (CIR) and what it takes to maintain a credit history, so that it is viewed favourably by loan providers.
Always pay your bills on time since late payments are viewed negatively by loan providers and may affect the chances of your loan getting approved.
A customer will be able to build a good credit history by proper financial planning and by maintaining a good track record of repayment of dues for loans.
Delinquency/ default in account will impact customer's credit score with CIBIL. As an NBFC we are mandated by law to share the credit history of all customers with the credit bureau.
A Credit Score is a three digit numeric value (ranging from 300–900) which indicates a customer's creditworthiness basis his credit information reported by the lending institution. The main parameters determining the CIBIL score are Payment History, Credit Utilization, Length of Credit History, etc. A borrower who has a strong credit history will have a higher credit score (closer to 900). Higher the Credit score i.e.the CIBIL TransUnion Score, higher the chances of your loan getting approved. The CIBIL TransUnion Score is a proprietary of CIBIL and TransUnion and its member institutions have no role in determining the same.
The CIBIL TransUnion Score, along with other variables like current leverage of the customer, is used to evaluate the credit worthiness of a customer; it predicts the likelihood of default of a customer basis his past payment history. Most lending institutions use the credit score, as one of the determining factors, to evaluate the credit worthiness of a customer. A robust credit history & hence a higher score enhances the possibility of getting promising credit facilities.
CIBIL is a repository of credit information and in the consumer segment it provides information on the various loans availed of and cards held by an individual from a member bank. Its commercial report covers the credit availed of by non–individuals.
CIBIL only reports loan and credit–card information such as repayment track, loan type, amount outstanding, loan amount disbursed, various dates etc. The report also contains a customer's personal information like name, address, date of birth, phone number(s), passport number, voter's ID number, PAN, etc. In a commercial credit report the inputs are similar but include some additional details pertaining to the commercial entity like legal constitution, registration number, etc. The credit report does not provide any opinion or comment on whether a loan should be extended to a customer. It reports the facts that its member banks/financial institutions have reported
Making late payments or defaulting on your EMIs or dues (recently or consistently) shows you are having trouble to pay your existing credit obligations and will negatively affect your score.
While increased spending on your credit card will not necessarily affect your score in a negative manner, however an increase in the current balance of your credit card indicates an increased repayment burden and may negatively affect your score.
Higher percentage of credit cards or personal loans (also known as unsecured loan) Having a balanced mix between the secured loans (such as Auto, Home loan) and unsecured loan (such as Personal loan, Credit Card) is likely to have a more positive effect on your score.
If you have recently been sanctioned multiple loans and credit cards, then lenders will view your application with caution because this behaviour indicates your debt burden has increased, which will negatively impact your score.
A control number is generated every time a CIR is requested from CIBIL by the financial institution. Control number refers to a nine digit unique number which enables CIBIL to track an individual's credit report from its database.
Every time a bank/ financial institution seeks for credit report of an individual from CIBIL, a new control number is generated.
A credit report reflects only credit information reported by member banks/financial institution. Hence, details of loan applications are not available in the credit report. However, information about the number of times a CIBIL report has been generated can be obtained from the 'Enquiries' section in the CIBIL report.
Approval or rejection of a credit application depends on the bank's/ financial institution's policies. Rejection by one bank/ financial institution on the grounds of the CIBIL report might not imply rejection by another bank/ financial institution.
CIBIL's report generated by X Bank/ financial institution will show all the loans/ cards relations the customer has with various banks/ financial institution, but without the identities of the other banks/ financial institution being indicated. In other words, X Bank/ financial institution officials will not know the name of the other banks/ financial institution with which the customer has loans/ cards relationships. The names of the other banks/ financial institution will appear as 'Not Disclosed'. This has been done to ensure privacy. However the customer can contact CIBIL at info@cibil.com with the enquiry control number of the credit report (provided by X Bank/ financial institution) to find out the details of the member bank/ financial institution that has reported a particular transaction.
Member banks/ financial institution report data to credit bureaus on a regular basis, thus in case a –customer is in default and if a customer has cleared all of his/ her overdue in the current month then the repayment track in his/ her credit report will be updated from current month onwards. Please note that the records for the previous period will, however, continue to reflect the past behaviour.
Yes. A customer can access his CIBIL TransUnion Score and Report from the CIBIL website directly upon payment & verification rules laid down by CIBIL. For any further understanding/ enquiry on the credit report, they can do so by logging on to www.cibil.com and purchasing their CIBIL TransUnion Score and CIR.
Yes. A customer can access his CIBIL TransUnion Score and Report from the CIBIL website directly upon payment & verification rules laid down by CIBIL. For any further understanding/ enquiry on the credit report, they can do so by logging on to www.cibil.com and purchasing their CIBIL TransUnion Score and CIR.
Customer will receive his/ her security documents (property documents, FD receipts etc.) within 21 days from date of closure of the loan account.
Customer can request for foreclosure/prepayment at any time during the life cycle of the loan.
Are any charges applied for foreclosure/ pre–payment?
You can choose to prepay your education loan with no applicable foreclosure or prepayment charges.
Yes, you can get tax benefits on the interest paid under Section 80(E) of Income Tax Act of India, 1961.
An individual can avail of tax benefit on interest paid on an education loan for self or a relative, meaning his/ her children, spouse or any student for whom the individual is a legal guardian.
Taxpayer can claim the benefit on the ACTUAL INTEREST PAID on the education loan.
Whilst it is correct to state that the Government of India has extended interest subsidy, we regret to inform you that inspite of prolonged and on-going efforts, Credila Financial Services Limited (Formerly known as Credila Financial Services Private Limited) ("Credila") is as yet to be notified as a 'recognised' lender to permit its borrowers to avail of the subsidy from the Central Government.
We assure you Credila is making every effort to get itself included in the list of institutions approved under the interest subsidy scheme and will intimate you and extend the subsidy benefit as soon as the relevant notification is issued by the Central Government.
There is NO UPPER LIMIT to claim the exemption. One will get the FULL AMOUNT OF INTEREST PAID, as the deduction.
It is available for the full time courses in full–time studies for any graduate or postgraduate course in engineering, medicine, management or for post–graduate course in applied sciences or pure sciences including mathematics and statistics. From 1st April, 2009 the deduction is allowed for vocational courses also.
Place of education can be India or outside India.
It is for a period of 8 continuous years, or until the interest is paid in full, whichever is earlier.
The financial institution, from where the taxpayer has taken the loan, will provide a certification, stating that the person has paid the specific amount to the financial institution towards the interest of the education loan.
Whichever institute and course the student pursues, remains with him/ her for the rest of the life. Every student has a wish list. Every student has an aspiration to enrol in a certain institute and course. However, many students just drop the idea of pursuing the course in a certain country or in a certain institute due to the uncertainty about available funds to pay for that higher education. Credila enables students to pursue their dreams by making the funds available to them even before they start applying to universities. When students know of the amount of funds available to them even before they start applying to various institutes, students don't have to downsize their dreams!
That's actually the main feature of Credila's benefits offered to students. Credila offers sanction letters even before your admission is confirmed. It may help in getting a favourable reply while applying for I20s as some universities prefer solvency along with the application form. Secondly, you will know your eligibility right away so that you can plan your finances accordingly.
To get admission to the US universities & to get I–20 for US visa, availability of liquid funds to complete the course needs to be demonstrated. Credila's education loan sanction letter before admission can help show the availability of liquid funds.
Students face many challenges while securing education loans. Some of the issues faced by students include:
Credila provides various options to students during the disbursement process. It can be discussed with Credila's relationship managers.
Credila reviews each and every education loan application carefully. There are various factors which are considered in credit review from time to time.
Credila reviews each and every education loan application carefully. CIBIL score is an important factor which Credila explores. Each case is to be evaluated on various factors including CIBIL score, CIBIL related details etc.
Credila accepts property with clean title and appropriate documentation. Each case is to be evaluated based on the merit of the case and property related information.
Credila has funded thousands of students studying over 1000 unique courses in over 2100 institutes across 35 countries. Credila is committed to serving the customers to the best of its ability. Every team member is committed to doing his/ her best while serving the customer.
Yes, simply visit http://www.credila.com/value-added-services/refer-a-friend-Win.html and fill in information of the friends you wish to refer, and you stand to win prizes
Yes, Credila specialises in education loan to the USA. Credila offers a unique service, where students can get our education loan sanction letter much before their admission. Credila's education loan confirmation letter has helped many students even before they get their I–20s for their USA. The student simply has to complete our formalities, and submit the required documents. Subsequent to our application scrutiny, should the loan be sanctioned we issue a conditional education loan sanction letter. Many students feel confident about their funds due to Credila's education loan assurance. This helps many students get admitted into the better of the US universities that they apply to.
Credila is one of the very few lenders who will finance 100% of the cost of education. So, you don't have to pay any part fees. If sanctioned, you won't even need any margin money.
You need to fill Credila's short loan application form on our website or by our toll free number 1800-209-3636. Alternatively, you may also visit any of Credila's offices at Mumbai, Pune, Bengaluru, Delhi, Ahmedabad, Chennai, Hyderabad, Kolkata, Gurgaon, Noida & Nashik.
Click here for detailed addresses
We generally require family members as co–borrowers. However, we would be able to guide you appropriately on understanding your specific details and requirements. We request you to contact our relationship manager for more information.
Yes, student profile and work experience are key indicators in loan assessment procedure. However, we at Credila conduct a comprehensive review of the overall profile prior to sanctioning a loan.
Funding Solutions for Studies in:
