Credila Education Loan Processing Fee and Origination Fee Explained

Planning to take a Credila education loan for your abroad education, then you must know if there are any extra charges that you need to pay to get the education loan. Before signing the loan amount, students would come across terms like the “Processing fee” or “Origination fee”.

These are upfront charges that students are required to pay to process the Credila education loan. Understanding these charges can help students plan their finances and avoid last-minute surprises. Read further to understand what is Credila education loan Processing fee, or Origination Fee

What are the Processing Fee and Origination Fee?

Let us now understand what a processing fee and an Origination fee are.

Processing Fee: 

• A processing fee is a non-refundable one-time fee charged for processing the education loan.
• Many financial institutions, including public banks, private banks, and NBFCs, charge a certain percentage of the loan amount to process the loan.

Origination Fee:

• This term is sometimes used interchangeably; the origination fee is nothing but the entire cost of the loan approval and documentation.
• The Origination Fee ensures that a borrower does not need to pay any additional charges when students apply for an education loan.
• It includes all the costs associated with loan processing, collected at the time of loan sanction.

What are the Credila Processing Fee and Origination Fee?

• For the Credila education loan, the origination fee is the formal term used for the charges that they collect to process and sanction the education loan. In some contexts,” processing fee” is used interchangeably.

• In a nutshell, with the Credila education loan, both the terms “origination fee” and “processing fee” are the same. However, if you see both terms, students are recommended to check if they refer to the same one-time charge or separate ones. 

How Much Does Credila Charge as a Processing Fee?

The exact processing fee charged by Credila often varies from case to case, and is influenced by various factors, such as the student's profile, the co-applicant's financial status, the university, the country, and the course that the student is studying in. However, the basic origination fee that Credila charges is up to 1.25% of the loan amount plus GST.

Applying through WeMakeScholars can help you bring down the Credila education loan processing fee to some percentage.

Eligibility for the Credila Education Loan

The eligibility criteria for Credila education loan vary depending on various factors such as the scheme, country, student's profile, and the co-applicant's financial status. The common Credila education loan requirements are given below.

1. Citizenship: Both the applicant and the co-applicant should be indian citizens.

2. Age: Students aged 16 or older can take an education loan from Credila.

3. Academic Performance: A strong academic history can enhance the chances of loan approval.

4. Co-applicant: A good co-applicant with stable income and a good credit history adds weight to the student profile.
   

5. Courses and Countries: Some courses and countries are loan favoured, such as the USA, UK, Canada, Australia, Germany, New Zealand, France, and many more. STEM courses are usually highly preferred for an education loan. 

Documents for the Credila Education Loan

The documents list may be influenced by various factors such as the loan type, student profile, etc. However, the basic documents list is given below.

KYC Documents: The applicant and the co-applicant are required to submit the documents proving their identity.

• PAN card

• Aadhar card

• Passport

• Voter ID 

Academic Records: The previous academic records of the student, such as 10th,12th, Graduation (if applicable), etc.

Admission Proof: The documents proving the admission status from the respective university.

Collateral Documents: If the student is applying for a secured education loan, then the documents of the collateral are to be submitted. 

How to apply for the Credila Education Loan

• To apply for the Credila Education Loan, students can directly visit the official website of Credila, fill out the education loan application form, and submit it.

• One of the credila’s executives will reach out to you and walk you through the loan process.

• An education loan sanction is crucial for funding the education of many students. 

• However, students often struggle to get their loans sanctioned without the right guidance. WeMakeScholars can help you in such situations.

• Our team is dedicated to assisting students in receiving education loan approvals on time. We provide complete education loan assistance to students applying through us.

Benefits of applying through WeMakeScholars

• Expert advice on the type of loan, which can save lakhs of rupees.

• End-to-End Support. From application to post-sanction, we lend our thorough support.

• Less processing compared to applying through Credila directly.

• We help students in negotiations for better interest rates and processing fees.

Conclusion

Credila offers the best education loan services to students who aspire to education abroad. Students are required to pay a certain percentage of the loan amount to process the Credila education loan, which is generally called the Processing fee or Origination Fee.

In this blog, we have covered what the Credila education loan processing fee and origination fee are. This indeed helps students make informed decisions about the charges the financial institution charges to process the education loan.