1. When do I start paying my EMI?

Credila's unique education loan offers the flexibility of paying only interest (PEMI) during the course period and principle plus interest (EMI) after the completion of studies and grace period.

2. How do you decide on repayment period?

The repayment periods are generally driven by our evaluation of the student's potential earning capability and risks we perceive in extending any particular loan.
At Credila, we understand that students want to start repaying loans immediately after they get a job. However, they may find higher EMI's (due to shorter repayment periods) at the start of their careers, very challenging. Thus we offer longer tenure to facilitate smooth transition of student from campus to corporate. This way they can start their earning and professional lives with positive credit histories that help them to take other loans in future.

3. How is interest calculated?

Interest may be calculated on daily, monthly or yearly reducing principle basis

4. What are the calculations that you do since repayment is usually after the person has graduated or got a job?

Education loans are structured with either complete moratorium during the course or only principle moratorium. Usually, 6 months to 1 year of grace period is also extended after the course for the student to search for a job

5. Can repayment period be extended?

Yes, based on the genuine reasons it can be. We can review this on a case to case basis.

6. What if the applicant gives up studies half way?

He/she will have either close the loan by paying full amount or keep repaying monthly installments on time to avoid becoming a defaulter and ruin their own credit history

7. Usually, banks asks to pay after course but Credila asked me to pay at least interest amount during the course. Why so?

Doing so might be beneficial for both students and parents. When you make the interest payment on the loan during the study period, there is a likelihood of the repayment being eased out subsequently. This also helps financial discipline in students.

8. Can I pay upfront interest in one shot of my course duration, so that my parents are not burdened to pay interest every month during my course?

Yes. There is an option available for upfront interest also depending upon the course and underlying demographics of the student.

9. Does Credila offer part closure/ foreclosure? If yes, what are the charges? RBI has asked banks not to charge such fees, is Credila covered under this?

Credila allows students and parents to make part payments or foreclosures on the education loans. Credila is compliant with all NBFC related guidelines.

10. Is there a concession if the loan is paid during the study period?

Yes, the pricing is typically designed to encourage at least interest repayment during the course period. This helps you

• Avail unlimited tax benefit on the interest paid
• Inculcate financial discipline from the get-go

11. Give an example. Say a person is applying for a Rs 12lakh-domestic will repayment work, for how many years, what would be the interest rate, down-payment. Give a similar break up for an international loan of Rs 20 lakhs?

The interest repayment, which is a relatively smaller amount per month, starts immediately. Post course completion/grace period, regular repayment begins in the form of monthly instalments.