Credila Education Loan
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FAQsTax benefit

1. Is there any Tax benefit on interest paid on education loan?

Yes, every Credila Education Loan borrower or co-borrower (any one) is entitled to avail tax benefits on interest paid on education loan, under Sec 80-E of the Income Tax Act.
An individual can avail of a tax benefit on interest paid on education loan for self or a relative, meaning spouse, child or a student for whom the individual is a legal guardian.


2. Who can avail the benefit?

An individual can avail of tax benefit on interest paid on an education loan for self or a relative, meaning his/her children, spouse or any student for whom the individual is a legal guardian.


3. On what basis the exemption is claimed?

Taxpayer can claim the benefit on the ACTUAL INTEREST PAID on the education loan.


4. What is the maximum amount that taxpayer can claim the exemption?

There is NO UPPER LIMIT to claim the exemption. One will get the FULL AMOUNT OF INTEREST PAID, as the deduction.


5. From where one has to take education loan, to avail this benefit?

One has to take loan from the Approved Financial Institutions* to avail this benefit. Credila is one of the approved financial institutions.


6. What are the courses for which this benefit can be availed?

It is available for the Full Time Courses in full-time studies for any graduate or postgraduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics. From 1st April, 2009 the deduction is allowed for vocational courses also.


7. What has to be place of education to avail this benefit?

Place of education can be India or outside India.


8. What is the time limit to claim the exemption?

It continues for 8 years or until the interest is paid in full, whichever is earlier.


9. How can one prove that I have paid the interest on education loan?

The Financial Institution, from where the taxpayer has taken the loan, will provide a certification, stating that the person has paid the specific amount to the financial institution towards the interest of the education loan.


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