Credila Education Loan

FAQs:

• What is the interest rate for Credila education loan?

  Credila offers education loans of 9.75% to 11%. The interest rate can vary depending on the applicant’s profile, the course, and the co-applicant’s background, country of study, and credit status of the borrower, among others. Credila has the flexibility of having a floating interest rate or a fixed interest rate. In floating rates, the rate of interest varies from market conditions while in fixed rates the rate of interest remains the same throughout the tenure of the loan. It may be lower where the interest rate is linked to such factors as the prestige of the borrowing institution or the popularity of a course of study. You can receive a 2% discount on your education loan by going through WeMakeScholars. You can get in touch by requesting a callback.

• Can I get an education loan without collateral from Credila?

  Yes, Credila offers education loans with and without collateral. Collateral is not mandatory for all education loan products, but it may be required in some cases depending on the borrower's profile and loan amount.

• What is the difference between HDFC and Credila?

  HDFC and Credila are different entities. HDFC Bank is a leading private sector bank in India, while Credila is an NBFC that specializes in providing education loans.

• What is the processing time for Credila education loan?

  The processing time for a Credila education loan is typically between 7 to 15 working days, depending on the loan product and borrower's profile.

• Is Credila approved by RBI?

  Yes, Credila is approved by the Reserve Bank of India (RBI) and is registered as a Non-Banking Financial Company (NBFC).

• What is Credila, and how does it help students?

  Credila is an NBFC that specifically only provides education loans to those who want to pursue higher education in Indian as well as foreign universities. They offer a broad range of flexible loans, where the student can choose secured and unsecured loans to cater for tuition fees, cost of living, traveling, and other expenses. There is no upper cap on the loan amount for certain universities, affordable interest rates, and easy and convenient repayment options available on going with Credila through WeMakeScholars for a hassle-free education loan process so that students can concentrate on their academics. They also provide fast approvals and come with customized loan packages depending on the student’s class, and institution, for a seamless funding experience.

• Is Credila good for education loans?

  Yes, The loans are very flexible and available without an upper limit cap which helps students to borrow as per their needs such as tuition, accommodation, and travel, the expenses incurred to pursue higher education in India or Abroad. Different repayment options such as prepayment and flexible EMIs enable students to choose the appropriate plan that fits their financial condition best. parents, relatives, or siblings can be considered as co-borrowers if they meet the eligibility criteria set by the bank. Borrowers would also have income tax benefits under Section 80-E of the Income Tax Act; thereby an enabling deduction on the interest paid would reduce their overall taxable income.

• Does Credila give education loans without collateral abroad?

  Yes, Credila has education loan schemes for both the US and non-US countries for students to pursue their education abroad. For US colleges, the loan size can go up to ₹ 80 lakhs for the top-ranked ones and up to ₹ 50 lakh for standard cases, where the interest rates for these schemes start from 10.75% with a repayment tenure of upto 12 years. For the non-US, students can take an education loan of upto ₹ 60 lakhs for top-tier schools and ₹ 30 lakhs for others at an interest rate of 11%. Both the schemes have included a moratorium period covering course duration plus another 6 months to 1 year.

• Does an education loan require collateral?

  Credila offers secured education loans as well as unsecured education. Secured education loans come with certain conditions, and if the amount of the loan is over a specific amount, then the collateral is mandatory, and the value of the secured education can go up to ₹1 crore. If you are planning to take a secured education loan, the collateral accepted are property, fixed deposits, or insurance policies. You don’t need any form of collateral for unsecured education loans but they do have a higher rate of interest compared to secured loans. To choose a suitable option between a secured education or an unsecured education loan, the lenders would analyze the type of course, the student’s academics, and the institution. 

• What is the maximum loan amount I can get from Credila?

  Credila does not have an upper limit for the education loans they offer and hence they do not restrict the maximum loan amount that it provides to individuals. The amount of money is generally up to INR 1.5 Crores for your education loan, although this depends on some factors. Some of the factors may include the course and university of your choice, your academic performance, the ability of your co-signer to repay the amount, any collateral offered, the cost of education which may include tuition fees, cost of living, and other expenses, and your credit rating. Considering these factors, the final amount of the loan is fixed so that the loan is ideal for your financial requirements and scenarios.

• What is the interest rate for Credila education loans?

  Credila offers education loans of 9.75% to 11%. The interest rate can vary depending on the applicant’s profile, the course, and the co-applicant’s background, country of study, and credit status of the borrower, among others. Credila has the flexibility of having a floating interest rate or a fixed interest rate. In floating rates, the rate of interest varies from market conditions while in fixed rates the rate of interest remains the same throughout the tenure of the loan. It may be lower where the interest rate is linked to such factors as the prestige of the borrowing institution or the popularity of a course of study. You can receive a 2% discount on your education loan by going through WeMakeScholars. You can get in touch by requesting a callback.

• What is the processing time for an Credila loan?

  It takes 7-15 days to process your education loan at Credila but it also depends on the number of documents provided and the student taking the loan. In some cases, if further verification is required or there are document complications in the case, the duration may take longer. Submission of all essential papers such as admission letters, financial information, and co-applicant's information can facilitate the approval of the loan. However, you can go through your education loan from Credila through WeMakeScholars to make the whole process a lot faster than going through Credila directly. 

• What is the repayment tenure for Credila education loans?

  The repayment period can range from 10 to 15 years. It also depends on the loan amount taken by the student, the repayment ability of the borrower, and some other factors. It is repaid after the completion of a course with an extra grace period usually applicable to the loan. Some of the features include a flexible repayment plan to allow the borrowers to repay after getting jobs without being overburdened. For large amounts of loans, it is advisable to select longer periods of loan repayment schedules to keep the monthly installments small but this of course leads to higher interest costs. To get your education loan on the terms best for you, you can contact WeMakeScholars by requesting a callback. 

• Is there any moratorium period for Credila loans?

  Yes, the moratorium period normally lasts for the duration of the course and 6-12 months after the course. During the moratorium period, the borrower is not asked to pay the full EMI amount to allow the students to get a job before they start repaying the loan fully. In this period, the borrower has to pay simple interest where possible, some of the interest, or even no interest at all if he is unable to pay the rest of the loan amount. This helps in relieving some pressure during the study period but the interest keeps accumulating and adds itself to the principal amount if not paid during this grace period. 

• Are there any prepayment charges for Credila education loans?

  Credila does not charge prepayment penalty on education loans, which implies that the borrower can pay back the amount earlier than the set time. This allows borrowers to pay lesser interest on the entire loan amount on the outstanding loan amount as pre-paying more amount than the decided EMI can reduce your overall outstanding loan amount quicker. But It is always important to check certain prepayment conditions before signing the contract.

  Let us read the fine print of the loan agreement for you and help you get the best deal possible so that you don’t end up paying more than you need to. Contact us by requesting a callback.

• What is the tax benefit on Credila education loans under Section 80E?

  As per the Income Tax Act of India 1961 Section 80E, the borrowers, who have availed education loans from Credila, can enjoy tax returns on the interest portion of the amount borrowed. This is for a loan taken by a person for his or her purpose, for a spouse, for children, or the student of whom the person is the legal guardian. The deduction is allowed for up to 8 years or up to the time the interest is paid up, whichever is the earliest. There are no restrictions on the amount of interest that can be claimed as a deduction and therefore it is a great way of saving on tax. Nevertheless, the principal repayment is not tax-deductible, and the loan should be obtained from a recognized bank.

• What are the eligibility criteria for getting an unsecured education loan from Credila?

  Credila provides education loans to students as unsecured loans but the conditions to avail of the loan may be somewhat difficult to meet. For the borrower to qualify for the loan, he or she needs to prove that they have been offered admission by any accredited university, preferably in a course that is in STEM such as engineering, medicine, management, or technology. The evaluation also takes into account the student's future income, the reputation of the university, and the country of study. Also, the student has to meet financial requirements, for which the co-applicant, often a parent or a guardian, is of great importance. However, a co-applicant’s credit score and a steady source of income can be mandatory to avail of the loan as it is an unsecured loan. 

• What countries and courses are covered under Credila loans?

  Credila education loans offer education loans for studying in a large number of countries such as the USA, UK, Canada, Australia, and Germany. Education loans are offered for students who are aspiring to do their first degree, master's, doctorate, or any other degree course in different fields of study such as engineering, medicine, business administration, and arts among others. The loans can also be availed for diploma courses and other certification courses provided the course offered is accredited. 

• Does Credila offer education loans for other countries apart from the US?

  Yes, Credila provides education loans for other countries apart from the USA such as the United Kingdom, Canada, Australia, Germany, New Zealand, and other countries in Europe and Asia. The type of loan and the basic requirements, interest rates, and even the repayment method may depend on the country of study and the reputation of the college/university. Although there is a large demand for education loans to study in the US, Credila also ensures that students who want to study in other countries also get an opportunity to get a loan. For undergraduate, postgraduate, or professional courses, one can apply for a loan to cater for tuition fees, accommodation, transport, and other expenses in some countries.

• Credila education loan process via WeMakeScholars?

  WeMakeScholars helps students to avail of a Credila education loan by guiding the loan application process. WeMakeScholars is a certified partner that assists a student in the process of collecting the necessary documents for obtaining a loan and submitting a loan application. We also provide comparisons to various loan products and also assist the customer in the application process. Since WeMakeScholars has built a partnership with Credila and other lenders involved, we are very helpful in making the approval process faster and less hassle for the applicant and getting favorable interest rates or loan terms for them.

• What are the benefits of applying for an Credila education loan through WeMakeScholars?

  Some of the benefits that come with applying for a Credila education loan through WeMakeScholars are that we assist students in applying and negotiating for loans collecting the necessary documents and helping the loan get processed faster. We also offer detailed loan comparisons in a way that the student will be able to compare the various financial institutions and select the best loan. WeMakeScholars has good collaboration with Credila for fast-tracking of loan disbursement & also for negotiating the interest rates or the terms and conditions. Also, our services are free since we operate under the Indian government's Digital India campaign, the students therefore get professional and unbiased advice.