Credila Financial Services Pvt. Ltd., Formerly known as HDFC Credila Financial Services Ltd. is a Subsidiary of HDFC Limited. Availing a loan from Credila is a win-win offer; Your child fulfils his/her higher education while you make big savings on your Income Tax too!
Frequently Asked Questions:
- Is there any tax benefit on interest paid on education loan?
Yes, Credila's Education Loan borrower or co-borrower can avail a tax benefit under Section 80E of Income Tax Act, 1961. - Who can avail tax benefit on education loan?
An individual can avail of tax benefit on interest paid on an education loan for self or a relative, meaning spouse, child or a student for whom the individual is a legal guardian.
Apply now for a simple, quick, hassle-free education loan and avail door-step service too!
Tax Savings as per Section 80-E of Income Tax Act, 1961
| *1 | Rate of Interest: The above calculation has been made assuming the tenure as 7 years (i.e. 2 years for the study plus grace period during which only interest would be serviced and thereafter the repayment towards principal would be done over 5 years thereafter). Further the installment calculation is derived without any moratorium. |
| *2 | Total Interest Paid Per Year (A): This indicates the amount an individual would need to pay as interest on education loan on the loan amount indicated by you. |
| *3 | Tax Saved (B): This indicates the amount of Income Tax an individual can save by taking an education loan from Credila and availing Income Tax benefits under Section 80E of Income Tax Act, 1961. |
| *4 | Effective Interest Paid (C): This is the difference between total interest paid on education loan minus and the tax amount saved by availing the tax benefits under Section 80E of Income Tax Act, 1961 (C=A-B). |
| *5 | Effective Rate of Interest on Education Loan: This indicates the rate of interest that an individual will effectively pay on the education loan if an individual avails the tax benefits under Section 80E of Income Tax Act, 1961. |
Click here to view details of Section 80E of Income Tax Act, 1961
*Terms And Conditions: (i) Tax rates may vary from individual to individual and the tax benefits are subject to changes in tax laws from time to time. Please consult your tax advisor/accountant to determine your exact tax benefits. (ii) Eligibility and validity of an applicant shall be determined solely by Credila. Credila reserves the right to reject any application without assigning any reasons therefore. (iii) The eligibility of an applicant for the aforementioned tax benefits shall be determined in accordance with the provisions of Section 80E of the Income Tax Act, 1961. (iv) The above calculations are merely illustrative in nature and the "Effective Rate" has been arrived at, based on the following assumptions: (a) Tax savings have been calculated as per tax benefits under Section 80E of the Income Tax Act, 1961; (b) The calculation has been made for a loan amount taken in the first tranche and presumes no revision in interest during the year of review; (c)A tax slab of has been presumed for an individual, together with an education and higher education cess of 3% on the same; (d) The tenor of the loan has been taken at 7 years (i.e. 2 years for the period of study plus a grace period during which only interest would be serviced and 5 years thereafter during which the repayment towards the principal would be made); (e) The interest paid has been calculated for a period of 12 months; and (f) The yearly tax savings amount depicted is only for the first year of disbursement.
*Terms And Conditions: (i) Tax rates may vary from individual to individual and the tax benefits are subject to changes in tax laws from time to time. Please consult your tax advisor/accountant to determine your exact tax benefits. (ii) Eligibility and validity of an applicant shall be determined solely by Credila. Credila reserves the right to reject any application without assigning any reasons therefore. (iii) The eligibility of an applicant for the aforementioned tax benefits shall be determined in accordance with the provisions of Section 80E of the Income Tax Act, 1961. (iv) The above calculations are merely illustrative in nature and the "Effective Rate" has been arrived at, based on the following assumptions: (a) Tax savings have been calculated as per tax benefits under Section 80E of the Income Tax Act, 1961; (b) The calculation has been made for a loan amount taken in the first tranche and presumes no revision in interest during the year of review; (c)A tax slab of has been presumed for an individual, together with an education and higher education cess of 3% on the same; (d) The tenor of the loan has been taken at 7 years (i.e. 2 years for the period of study plus a grace period during which only interest would be serviced and 5 years thereafter during which the repayment towards the principal would be made); (e) The interest paid has been calculated for a period of 12 months; and (f) The yearly tax savings amount depicted is only for the first year of disbursement.
Contact Us: Website: www.credila.com | Toll free no.: 1-800-209-3636 | SMS 'Credila' to 53636 | Email: loan@credila.com