Navigating the repayment of an education loan can seem daunting, but Credila Financial Services Limited (formerly HDFC Credila) makes it seamless with flexible, borrower-friendly options. Whether you’re an Indian student pursuing studies in India or abroad, or a co-applicant supporting the loan, understanding Credila’s repayment terms, options, and strategies is key to stress-free financial planning.
This guide offers a detailed overview of Credila’s education loan repayment process, including key features, repayment methods, tax benefits, and practical tips to manage your loan effectively.
Table of contents
What is Credila Education Loan Repayment?
Credila, a leading Non-Banking Financial Company (NBFC) in India, provides tailored education loans with repayment plans designed to ease financial burdens during and after studies. Repayment typically begins after a moratorium period, but borrowers can opt to pay interest early to reduce the overall loan cost.
With features like up to 100% financing, no margin money, and tenures up to 15 years, Credila supports students holistically. Let’s explore the repayment structure and key features of Credila education loans:
- 100% Financing: Covers tuition fees, living expenses, travel, books, laptops, and more.
- No Margin Money: No upfront payment required from borrowers.
- Flexible Tenure: Repayment periods extend up to 15 years.
- Tax Benefits: Deduction on interest paid under Section 80E of the Income Tax Act, 1961 (old tax regime).
- 0% TCS: No Tax Collected at Source on foreign remittances for education.
- Loan Options: Secured loans start at 9.75% p.a. onwards; collateral is required only for secured loans.
- Fully Digital Process: Online application and repayment management.
- No Prepayment Charges: Pay off your loan early without penalties.
What is the Credila Education Loan Moratorium Period?
The moratorium period, or repayment holiday, is a grace period during which borrowers are not required to repay the principal amount. For Credila education loans, this typically includes:
- Duration: Course duration plus up to 12 months or 6 months after securing employment, whichever is earlier.
- Interest Payment Option: Paying interest during the moratorium is optional but recommended, as it:
- Reduces the principal amount.
- Lowers the total interest burden.
- Builds financial discipline and boosts your credit score.
Benefit: The moratorium allows students to focus on academics without immediate repayment pressure.
Also Read: What is an Affidavit for an Education Loan?
Credila Education Loan EMI Repayment Period
Once the moratorium period ends, the borrower needs to start repaying the loan in Equated Monthly Installments (EMI). The EMI consists of both the principal and interest components and is calculated based on the loan amount, interest rate, and tenure. Credila offers:
- Interest Rate: Starting at 9.75% p.a. for secured loans (rates vary based on loan type, credit profile, and co-applicant’s financial stability).
- Tenure: Up to 15 years, providing flexibility to manage monthly payments.
EMI Calculations
The EMI is calculated using the following formula:
EMI = [P x r x (1+r)n] / [(1+r)n– 1]
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12)
- n = Loan tenure in months
For example, for an INR 10 lakh secured loan at 9.75% p.a. over 10 years (120 months), the EMI is approximately INR 19,300 (calculated using standard EMI calculators).
Credila Education Loan Prepayment and Part-Payment Options
Credila allows borrowers to make early repayments or make part-payments towards their education loan without incurring any prepayment penalties. Most banks and financial institutions do not implement any early repayment charges on education loans.
- Reduced Interest Burden: Paying off the principal early lowers the total interest paid.
- Shortened Tenure: Lump-sum payments can reduce the loan duration, freeing borrowers from debt sooner.
- No Penalties: Unlike some lenders, Credila does not charge fees for early repayments.
How to Make Prepayments
Borrowers can log into the Credila portal or visit a branch to make additional payments. These payments are applied directly to the principal, reducing future EMIs or the loan tenure.
Repayment Channels for Credila
Credila provides multiple repayment options for borrowers to ensure timely payments and maintain a strong credit score. Check some of the common channels of payment below:
- Online Payment via Credila Portal: Pay using Net Banking, UPI, or Debit Card.
- Electronic Clearing Service (ECS): Set up automatic EMI deductions from your bank account.
- National Automated Clearing House (NACH): Schedule automated electronic payments.
- Post-Dated Cheques (PDCs): Submit cheques for EMI amounts at a Credila branch.
- Standing Instructions (SI): Authorize monthly EMI debits from your account.
Role of Co-Applicants in Credila Loan Repayment
In Credila education loans, a co-applicant (generally a parent or guardian) is required. If the student is unable to start repayment due to unforeseen circumstances, such as a delay in employment, the co-applicant becomes responsible for loan repayment.
Also Read: Education Loan for CA Students to Study Abroad
Credila Loan Repayment Schedule and EMI Adjustment
Borrowers can check the Credila loan repayment schedule by:
- Accessing the Schedule: Log in to the Credila portal or download the EMI statement.
- Adjusting EMIs:
- Make prepayments to reduce EMI amounts.
- Request a tenure extension to lower monthly EMIs (subject to approval).
- Payment Allocation: Payments are first applied to overdue loans (if any), then distributed proportionally across loans in a loan group based on monthly installments.
Note: Timely payments prevent delinquency and protect your credit score.
Documents Required for Loan Application
To streamline loan approval and repayment setup, ensure the following documents are submitted:
- Application Form: Completed digital or original form.
- KYC Documents:
- PAN Card or Form No. 60.
- One of: Passport, Driving License, Voter ID, Aadhaar, NREGA Job Card, or NPR letter.
- Education Documents:
- 12th or equivalent marksheet (if applicable).
- Latest degree/semester marksheet.
- Entrance exam scores (e.g., GRE/GMAT/TOFEL/IELTS/DUOLINGO/CAT/CET).
- Admission letter or I-20 (if received).
- Financial Documents (Co-Applicant):
- Salaried: 6 months’ bank statements, recent salary slip.
- Self-Employed: 6 months’ current/savings account statements, 2 years’ ITRs, business proof (e.g., GST registration).
- No-Income/Pensioner: 6 months’ savings account statements or pension order.
- Collateral Documents (Secured Loans): Sale deed, property tax receipt, approved building plan, or occupation certificate.
Tip: Keep digital copies ready for Credila’s fully online application process (processing time: up to 15 days).
Tax Benefits and Other Perks
- Section 80E: Claim tax deductions on interest paid (old tax regime).
- 0% TCS: No tax on foreign remittances for education purposes.
- Top-Up Loans: Available based on eligibility.
- Mandatory Insurance: Subject to solicitation, providing added security.
- Travel Expenses: Covered, including bank transfer allowances.
Also Read: List of Top Student Forex Cards for Malaysia
Credila Financial Services Limited offers a robust education loan repayment structure designed for flexibility and ease. With up to 100% financing, no prepayment penalties, tax benefits, and a fully digital process, Credila empowers Indian students to pursue their academic dreams without financial stress. By understanding the moratorium, repayment options, and leveraging prepayments, borrowers can manage their loans efficiently and build a strong financial foundation.
FAQs
Credila provides multiple repayment options for borrowers, like Electronic Clearing Service (ECS), National Automated Clearing House (NACH), post-dated cheques, and standing instructions (SI) for automatic debit from the borrower’s bank account.
The Credila education loan repayment generally starts after the completion of the course. It offers a moratorium period of the course period, plus one year or 6 months after getting a job.
The e-mandate is set at 1.5 times the MI to accommodate potential changes in installments, avoiding the need for new mandates. Deductions occur as per the agreed EMI schedule.
Credila offers up to 100% financing, covering tuition fees, living expenses, travel, books, laptops, and other study-related costs.
To prepay a Credila education loan, log into the Credila portal, navigate to the repayment section, and select your preferred payment mode (Net Banking, UPI, or Debit Card). Alternatively, visit a Credila branch to make payments. Prepayments are applied directly to the principal, reducing future EMIs or loan tenure, with no penalties charged.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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