HDFC Credila Financial Services, a prominent non-banking financial company (NBFC), has positioned itself as a significant player in fulfilling the educational aspirations of students. Serving as India’s first specialized education loan lender, HDFC Credila offers customized financial solutions for students pursuing higher education globally, spanning over 1000 universities in 35 countries. HDFC Credila extends its services to various countries, including Canada, Germany, Australia, France, Singapore, Dubai (UAE), the United Kingdom, Ireland, and New Zealand. This overview provides insights into the distinctive features of HDFC Credila’s education loans, encompassing collateralized and uncollateralized options, interest rates, and country-specific loan offerings.
Collateral-Based Education Loans vs Non – Collateral Based Education Loans:
HDFC Credila offers flexibility with both secured and unsecured education loans. Secured loans require collateral, such as property or fixed deposits, while unsecured loans do not necessitate collateral but require a co-applicant.
For those seeking loans with collateral, HDFC Credila provides a solution with loan amounts above 7.5 lakhs. The interest rates for these secured loans are capped at 13.3%, ensuring a competitive and reasonable repayment structure. This allows students to secure funds for their education by leveraging their assets.
In contrast, HDFC Credila extends support to students who may not have substantial collateral to offer. For loan amounts up to 7.5 lakhs, the non-collateralized option comes into play, offering financial assistance at interest rates ranging from 10.5% to 14%, catering to a broader spectrum of students with varying financial backgrounds.
What sets HDFC Credila apart is its commitment to providing fully secured loans for students planning to study in any country, differentiating it from lenders that typically approve partially secured loans. Regardless of the destination country, HDFC Credila provides the option of a fully secured education loan, with a maximum loan amount reaching up to INR 1 crore and interest rates ranging from 10.0% to 10.5%, enhancing affordability for students pursuing studies abroad.
Key Points to Remember:
- Eligibility for a loan without a financial co-applicant based on GRE score and top 100 university ranking.
- Concession in ROI for high GRE or GMAT scores, top-ranked universities, and a co-applicant with good income.
- Special eligibility for a loan of up to 75L for select universities.
The general eligibility criteria for education loans typically include:
- Student’s Age: The student should be a minimum of 18 years old and should not exceed a certain age limit.
- Academic Qualifications: The student should have secured admission to a recognized course at a reputed institution.
- Co-borrower: In most cases, a parent, guardian, or a close relative is required to be a co-borrower. The co-borrower’s income and creditworthiness may also be considered.
- Indian Nationality: The student should be an Indian national.
- Collateral or Security: Depending on the loan amount, collateral or security may be required. This can be in the form of property, fixed deposits, or other assets.
- Academic Performance: The academic performance of the student is often considered. Some lenders may require a certain percentage of marks in the qualifying examination.
- Loan Amount: The loan amount may vary based on the course, institution, and other factors. The loan-to-value ratio (LTV) may also be a consideration.
- Repayment Capacity: The co-borrower’s income and financial stability are crucial factors in determining the repayment capacity.
It’s important to note that the specific eligibility criteria may vary, and HDFC Credila may have its own set of requirements. For Master’s courses in the US, HDFC Credila tailors its offerings based on the applicant’s GRE or GMAT scores and university rankings, with loan amounts and interest rates varying for STEM and non-STEM courses.
HDFC Credila Education Loan Interest Rate
The HDFC Credila education loan interest rate operates on a floating basis, directly linked to the HDFC Credila Benchmark Lending Rate (CBLR). The floating interest rate is calculated as (HDFC Credila’s CBLR + Spread)% per annum. The Spread is intricately tied to the risk profile, considering factors such as academic background, employability prospects, college and country reputation, co-borrowers financial strength, repayment capability, credit history, presence of collateral, and associated costs. This personalized approach ensures a nuanced interest rate structure.
Interest rates offered by HDFC Credila for various countries and courses are subject to change and may vary based on individual cases.
| Feature | Canada | |||
| University | College | |||
| STEM | NON-STEM | STEM | NON-STEM | |
| Loan Amount | INR 40 lakhs | INR 25 lakhs | INR 30 lakhs | INR 20 lakhs |
| Interest Rate | 12.0% – 12.25% | 12.25% – 12.5% | 12.0% – 12.25% | 12.25% – 12.5% |
| Feature | US | |
| STEM | NON-STEM | |
| Loan Amount | INR 75 lakhs | INR 40 lakhs |
| Interest Rate | 11.50% – 12.0% | 12.0% – 12.50% |
| Feature | UK, Ireland, and Germany | Australia, New Zealand, and other countries | ||
| STEM | NON-STEM | STEM | NON-STEM | |
| Loan Amount | INR 30 lakhs | INR 25 lakhs | INR 20 lakhs | INR 20 lakhs |
| Interest Rate | 12.0% – 12.25% | 12.25% – 12.5% | 12.0% – 12.5% | 12.0% – 12.5% |
Understanding the interest rates associated with HDFC Credila’s education loans is crucial for individuals seeking financial support for their academic pursuits. While the specific interest rates may vary based on various factors, including the loan amount and tenure, HDFC Credila is known for providing competitive and flexible options. Prospective borrowers are encouraged to carefully review the current interest rates, terms, and any special features offered by HDFC Credila to make informed decisions that align with their financial goals. Being well-informed about the interest rate structure ensures transparency and enables individuals to plan for a successful academic journey with confidence.
