HDFC Credila Disbursement Process

Updated on: 10 Oct 2023 7 min read

Did you know that the education loan sanction letter is valid for only six months and if you don't fulfill the disbursement formalities within the stated period of time, your loan application might get declined and you will have to redo the whole process?

It is essential that you comprehend the disbursement process in order to prevent any hiccups during your education loan journey.

A general outlook of the HDFC Credila education loan

HDFC Credila education loan disbursement process

• HDFC Credila is India’s first dedicated Non Banking Financial  Company providing abroad education loans. Its loan approval and subsequent disbursement process is quite straightforward. Once the HDFC Credila education loan sanction letter and the initial loan agreement are signed and sent to the lender, you will have to decide -

  • The date of disbursement: The exact date of the first disbursement can either depend on the visa application or the last date of tuition fee payment.

  • Disbursement amount: You will have to decide the amount for the first disbursement considering the tuition fees and living expenses.

  • Method of disbursement: You will have to provide the exact details for transferring your tuition fee and living expenses. It could be a wire transfer or forex transfer. This information will be provided by the university along with your admission package.

• Upon receiving this information, the lender will prepare a final loan agreement. This final agreement will have to be signed by the student, co-applicant, and guarantors (if any).

• Along with the final loan agreement, documents for disbursement mentioned below have to be submitted to proceed further.

• A separate loan account with HDFC is also opened in the student's name where the amount for living expenses and other daily expenses are transferred.

• For transactions of further semesters, the student/co-applicant can reach back to the HDFC Credila team for making the payments to the university. If the loan is applied via GyanDhan and there’s a delay in disbursement, the student can contact GyanDhan to get it done swiftly.

• If the student has already paid the tuition fees, they can get the amount reimbursed by submitting a photocopy of the fee receipt.

Required documents for the HDFC Credila education loan disbursement process

• Self-attested final loan agreement.

• Original KYC documents of the student, co-applicant, and guarantor (if any).

• Two original copies of the completed ECS mandate form signed and stamped by your bank. After deciding the date of disbursement, submit one of the original copies to the bank manager for their records. Alternatively, the co-applicant can fill out a NACH form providing the details of the account from which monthly interest payments will be deducted.

• The co-applicant will have to submit 9-12 post-dated cheques as security, in case the co-applicant is unable to make an interest payment in a particular month.

Common problems faced by students during HDFC education loan disbursement

During education loan disbursement, students often encounter several common problems that can cause inconvenience and delays. Some of these challenges include:

• Delay in sanction letter: The approval process for education loans can sometimes be lengthy, leading to delays in disbursing the funds. This delay in the sanction letter can cause stress and uncertainty for students and their families.
   
• Disbursement delays: Despite promising a disbursement on a specific date, the lender backs out on their commitment and fails to fulfill it in a timely manner.

• Pre - visa disbursement: Pre-visa disbursement refers to the process of releasing funds from an education loan to a student or their educational institution before obtaining the student visa for studying abroad. It is essential to note lenders that some may offer this facility, while others may disburse funds only after the student's visa is approved.

Up till now you must have understood the issues that students face after disbursement. However, HDFC Credila, unlike other lenders, ensures a smooth disbursement process, minimizing the issues commonly faced by students.

Perks of an HDFC Credila education loan

For a smooth disbursement process it is essential for students to make informed decisions regarding their education loans. When it comes to funding your education, making the right choices can shape your future. Remember that there are several crucial steps even after disbursement such as repayment and tax savings that require attention and expert advice. For a hassle-free disbursement process and to avail maximum benefits, turn to GyanDhan for expert guidance in securing the best education loan options tailored to your needs. We connect students with a range of loan options, provide expert financial advice, and facilitates end to end services regarding abroad education loans that are free of cost. So check your loan eligibility to kick start your abroad education loan journey today!

Read also

• HDFC Credila Abroad Education Loan
• Education Loans From NBFCs
• Documents Required for Education Loan
• Moratorium Period In Education Loan
• Indian Government Education Loan Schemes To Help Students Study Abroad
• Study Abroad Scholarships for Indian Students

Frequently Asked Questions

• Education loan 
• Student loan 
• Credila HDFC 
• Study abroad 
• Loan Disbursement