Education Loan

HDFC Credila Disbursement Process

HDFC Credila Disbursement Process

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Read about the education abroad loan and disbursement process of HDFC Credila. List of required documents, eligibility criteria, features, and benefits of HDFC Credila.

GyanDhan
Ananya Ghai
Updated on:  10 Oct 2023  | Reviewed By: 
Aman 
| 25.9K | 6  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.

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HDFC Credila Abroad Education Loan

Rate of Interest

10.50% - 12.25%

Margin money

No margin money.

Moratorium period

6 months or 1 year after completing the course.

Repayment tenure

Up to 15 years

Processing time

7-10 working days after submission of required documents.

Processing fees

0.75%-1.25% of the sanctioned amount

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What is the HDFC Credila Disbursement Process?

  • list items 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 -   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.  
  • list items 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.  
  • list items Disbursement amount: You will have to decide the amount for the first disbursement considering the tuition fees and living expenses.  
  • list items 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.  
  • list items 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).  
  • list items Along with the final loan agreement, documents for disbursement mentioned below have to be submitted to proceed further.  
  • list items 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.  
  • list items 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. 

  • list items If the student has already paid the tuition fees, they can get the amount reimbursed by submitting a photocopy of the fee receipt.
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Required documents for the HDFC Credila education loan disbursement process

  • list items Self-attested final loan agreement.
  • list items 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.
  • list items 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. 
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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:

  • list items 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.  
  • list items 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.
  • list items 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.

 

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Perks of an HDFC Credila education loan

Advantage Description 

Tax benefits

HDFC Credila qualifies for tax benefits under section 80E of income tax act

Less processing time

The entire loan process can take 15 days from the date of the loan application. 

Repayment in US dollars

HDFC Credila offers students the option to repay their loan from the US in US dollars

 

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!

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Frequently Asked Questions

How do I apply for a loan with HDFC Credila?

You can apply for a loan with HDFC Credila online by filling out the HDFC Credila education loan form and then submitting the documents. To ease the process, you can apply via GyanDhan and we will help you at every step of your abroad education loan.

What are the requirements for a loan from HDFC Credila?

Any Indian student can apply for an abroad education loan at HDFC Credila.

What is the interest rate for an education loan with HDFC Credila?

The Rate of Interest (ROI) for an education loan with HDFC Credila lies between 11%-13%.

How to check HDFC Credila education loan status?

To check your education loan status log in to your account on HDFC credila website.

What is HDFC Credila loan processing time?

HDFC Credila loan processing time is 7-14 working days. With GyanDhan by your side, you can complete your HDFC Credila education loan process within 5 to 7 working days.

How can I get my HDFC Credila education loan sanction letter?

Once HDFC Credila approves the loan application it further verifies all the documents and evaluates the student's profile. Once verification is done, the lender issues the sanction letter.

How much time does it take for money to be credited after a loan is disbursed in HDFC Credila?

HDFC Credila credits the education loan within 24 hours from disbursement receiving all necessary documents and completing the required formalities.

 

How long does it take to disburse student loan money?

HDFC Credila disburses the education loan within 15 working days after receiving all necessary documents.

Check Your Education Loan Eligibility


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