All About HDFC Credila Disbursement Process

    Updated on: 01 Mar 2023

    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. HDFC Credila is India’s first dedicated education loan company. Its loan approval and subsequent disbursement process is quite straightforward.

    A general outlook of the HDFC Credila education loan

    Loan amount

    Up to INR 75 Lakh

    Rate of Interest

    11% - 13%

    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


    Check Your Education Loan Eligibility for Free Apply Here

    HDFC Credila disbursement process

    • Once the 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 loan disbursement process at HDFC Credila

    • 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.


    Check Your Education Loan Eligibility for Free Apply Here

    Perks of an HDFC Credila education loan

    1. Tax benefits: Under section 80E of the income tax act of India, 1961, the interest paid on a loan taken from any financial institution or any approved charitable institution can be claimed as a deduction.

    For the purpose of this deduction, a financial institution is either a bank or any other financial institution approved by the Central Government by notification in the Official Gazette. Loans from HDFC Credila qualify for the Sec80E deduction.

    2. Quick process: The entire loan process can take 15 days from the date of the loan application. The sanction letter is provided within 7 days from the date of application and the disbursement is made in another 7 days from the date of receiving all the documents. 

    However, you can further reduce the time by applying for a loan via GyanDhan. Our executives work closely with the bank officials and will assist you with the application and documentation process.

    3. Repay the loan from the US: HDFC Credila offers students the option to repay their loan from the US in US dollars.

    Read also

    Frequently Asked Questions

    How much time does it take for loan disbursement in HDFC Credila?

    It usually takes 7-14 working days for the HDFC Credila loan disbursement process. With GyanDhan by your side, you can complete your HDFC Credila education loan process within 5 to 7 working days.

    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%.

    First published date:

GyanDhan is India's first education financing marketplace.

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