Credila Education Loan
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FAQsCredila Product

1. How is Credila different? What’s the difference between Credila and any other bank?

Credila offers some unique education loans features like:

  • Education Loan at your Door Step!
  • Attractive Tax benefits
  • Quick loan processing
  • No upper limit on loan
  • Loan up to 100% of education expenses including living expenses
  • Multi-city co-borrower accepted
  • Flexibility on collateral security
  • Easy EMIs

We have a technology, internet and phone driven application processing system. We also have a team across many cities in India, which work with parents and students and collect application forms and supporting documents from the house of parents.

Hence, Credila’s unique services make getting a loan simpler, faster and more convenient.

Credila Vs Others

Education Loan Features Credila Others
Up to 100% finance check mark cross
Doorstep service check mark cross
Loan amount over Rs.20 lakhs also available check mark cross
Repayment tenure up to 10 years (Easy EMIs) check mark cross
Less than 100% collateral check mark cross
Co-borrower flexibility check mark cross
Loan against property mortgaged with HDFC Ltd. check mark cross
Loan Sanction before admissions also check mark cross
Attractive rate of interest check mark Maybe
Tax benefit under Section 80-E of Income tax Act check mark Maybe
Quick and hassle free process check mark cross

2. Credila ROI is higher as compared to other banks, why should I go with Credila?

Credila’s interest rates are very competitive. In many cases, they are the lowest interest rates. Credila has multiple education loan product categories. Once a completely filled application form is submitted to Credila with the required supporting documents, Credila reviews the applications on various parameters such as the academic background of the student, the country, the institute and the course for which the student is going, co-borrower details, financial support provided, collateral security provided etc. Based on a holistic review, appropriate product group is suggested for the approved cases. The comparison between Credila and Banks in terms of Education Loan offerings is as under:

1

Cost of Education + Living Expenses

Credila

Credila funds 100% of education and living expenses

Bank

Typically, banks do NOT fund all the cost of education. Non only margin money is required, but typically banks sanction the loan only of the amount which is dependent on the value of the collateral, even if it's lower than the total cost of education

2

Margin Money

Credila

Credila funds 100% of the expenses. No margin money required

Bank

Banks require anywhere from 15 to 30% as margin money

3

Maximum loan amount

Credila

Currently Credila is the only lender in India who can offer more than Rs. 20 lacs of education loan.

Bank

No other bank offers education loan more than Rs. 20 lacs

4

Loan before admission

Credila

Credila is the only lender in India who can offer loan approval; even before the student gets any confirmed admission letter from any academic institute

Bank

Having confirmed admission is mandatory while applying for education loan at the banks. Most banks won't be able to even process the education loan application before any confirmed admission.

5

10 years of repayment

Credila

Credila can offer loan with repayment terms of 10 years for select cases

Bank

Most banks typically offer 7 years repayment period

6

Flexibility of loan product

Credila

Credila offers 5-6 choices of education loan products as per the requirements of the student if the creditworthiness of the student is established

Bank

Banks typically have a standard product without much flexibility

7

Door step service

Credila

Credila offers door step service for applying for education loan

Bank

Banks typically require borrowers to visit their branches for their education loan needs

8

Ability to repay from the USA

Credila

Credila is the only lender in India who offers the choice to the student to repay the loan from the USA in US Dollars.

Bank

No other bank offers this benefit

9

Hidden Charges

Credila

Other than origination fees and interest rate, there are no other hidden charges

Bank

Legal fees and registration charges etc. are to be paid separately by the borrower while taking education loan from banks.

10

Partial Collateral

Credila

Credila can accept partial collateral

Bank

Generally speaking, most of the banks require collateral more than the value of the loan

11

Multicity coborrower

Credilae

Credila can accept multi-city coborrowers

Bank

Most banks typically require the coborrower to be in the same city as the city of the bank branch

12

Origination Fees

Credila

All legal fees, registration charges are included in Credila's origination fees

Bank

All legal fees, registration charges are to be paid in addition to the processing fees of most of the bank

13

Opening the bank account

Credila

Generally, there is no need to open a new bank account

Bank

It's mandatory to have the bank account with the bank for some period of time

14

Purchase of shares of the bank

Credila

Not required at all

Bank

Cooperative banks can only give loans to their members. Therefore, there is a hidden cost for the students and parents. Parents are forced to buy shares of the cooperative bank and hold it. This is additional cost and money gets locked in. Without that the borrower doesn't become eligible for any loane

15

Tax benefit

Credila

By taking education loan from Credila, students and parents get tax benefit on their interest repayment as per Income Tax section 80E

Bank

It's also available from most banks.

16

Collateral Security

Credila

Collateral security can be less than 100%

Bank

In most cases, collateral security has to be around 100% or more

17

Collateral Registration

Credila

No registered mortgage

Bank

Registered mortgage is required

17

Interest rates

Credila

Credila offers extremely competitive interest rates

Bank

Banks have a range of interest rates

Credila Financial Services is a Subsidiary of Housing Development Finance Corporation Limited (HDFC) . Housing Development Finance Corporation Limited is one of the leading financial services companies of India.
Credila Financial Services Private Limited Registered Office: B 301, Citi Point, Andheri-Kurla Road, Andheri (East), Mumbai-400 059, India