HDFC Credila Education Loan Repayment: Navigating the repayment of an education loan can feel overwhelming, but HDFC Credila offers flexible and borrower-friendly options to make the process seamless. Whether you’re a student or a co-applicant, understanding the HDFC Credila education loan repayment terms, moratorium period, and available options is crucial for effective financial planning.
This guide provides a comprehensive overview of HDFC Credila education loan repayment, including key terms, repayment methods, and strategies to reduce your loan burden.
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What is HDFC Credila Education Loan Repayment?
HDFC Credila, a leading education loan provider in India, offers tailored repayment plans to help students manage their finances during and after their studies. The HDFC Credila education loan repayment process typically begins after a moratorium period, but borrowers can start paying interest early to reduce overall costs.
Let’s explore the repayment structure and key features of HDFC Credila’s education loan repayment process.
HDFC Credila Education Loan Moratorium Period
The HDFC Credila education loan moratorium period, often referred to as a repayment holiday, is a grace period during which borrowers are not required to repay the principal amount. For HDFC Credila education loans, this period typically extends to the course duration plus one year or six months after securing employment, whichever comes first.
During this time, borrowers may choose to pay the interest to lower the total loan cost, though this is optional based on loan terms.
- Key Benefit: Provides financial relief during studies, allowing focus on academics.
- Interest Payment Option: Paying interest during the moratorium can reduce the principal and overall interest burden.
Also Read: What is an Affidavit for an Education Loan?
HDFC Credila Education Loan EMI Repayment Period
Once the moratorium period ends, the borrower needs to start repaying the loan in Equated Monthly Installments (EMIs). The EMI consists of both the principal and interest components and is calculated based on the loan amount, interest rate, and tenure. HDFC Credila offers flexible repayment tenures, generally ranging from 10 to 15 years.
HDFC Credila Education Loan Interest Rate and EMI Calculations
The interest rates offered by HDFC Credila start from 13.80%. It depends on various factors such as the applicant’s credit score, the co-applicant’s financial stability, and the loan amount.
The interest is charged on a simple interest basis during the moratorium period, and it is compounded after the moratorium period. 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, an INR 10 lakh loan at 11.25% interest with a 10-year tenure results in an EMI of approximately INR 18,500 (calculated using online EMI calculators for accuracy).
HDFC Credila Education Loan Prepayment and Part-Payment Options
HDFC 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, HDFC Credila does not charge fees for early repayments.
How to Make Prepayments
Borrowers can log into the HDFC 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 HDFC Credila
HDFC Credila provides multiple repayment options for borrowers. You can pay online or by physically visiting the branch. Check some of the common channels of payment below:
- Electronic Clearing Service (ECS): Monthly EMIs can be automatically deducted from the borrower’s bank account.
- National Automated Clearing House (NACH): Another electronic mode for automated payments.
- Post-Dated Cheques: Borrowers can submit post-dated cheques for the EMI amounts.
- Standing Instructions (SI): Students can set up standing instructions to debit EMIs from their accounts.
Role of Co-Applicants in HDFC Credila Loan Repayment
In HDFC 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.
Methods to Repay HDFC Credila Education Loan
Repaying your HDFC Credila education loan is straightforward, with multiple methods available to ensure timely payments. Borrowers can choose from various online and offline options to manage their HDFC Credila education loan repayments efficiently. Below are the common methods you can use:
- Online Payment via HDFC Credila Portal: Log in to the HDFC Credila loan portal, navigate to the repayment section, select your preferred payment mode (Net Banking, UPI, Debit Card, etc.), enter the required details, and confirm the payment.
- Electronic Clearing Service (ECS): Set up an ECS mandate for automatic monthly deductions from your bank account, ensuring timely payments.
- National Automated Clearing House (NACH): Another automated electronic mode that enables scheduled loan repayments.
- Post-Dated Cheques (PDCs): Borrowers can submit post-dated cheques for EMI payments at their nearest HDFC Credila branch.
- Standing Instructions (SI): You can authorise standing instructions to debit the EMI amount from your bank account on a fixed date every month.
Choosing the most convenient repayment method ensures timely EMI payments and helps maintain a good credit score while avoiding penalties for missed payments.
Also Read: Education Loan for CA Students to Study Abroad
HDFC Credila Loan Repayment Schedule And EMI Adjustment
Borrowers can check the HDFC Credila loan repayment schedule by:
- Logging into their HDFC Credila account.
- Downloading the EMI repayment statement.
- Requesting a tenure change if necessary.
If needed, borrowers can adjust their EMI by:
- Making a prepayment to lower the EMI.
- Extending the tenure to reduce EMI.
Payment Allocation in HDFC Credila Education Loan Repayment
HDFC Credila education loan repayment involves an automated process where payments are systematically allocated across all loans within a loan group. Payments are first applied to any overdue (delinquent) loans, prioritising those that have been overdue the longest.
Once all loans are current or equally delinquent, the remaining amount is distributed proportionally based on each loan’s monthly instalment. This ensures a balanced and efficient repayment structure under the HDFC Credila education loan repayment system. Check more details below:
- If the borrower does not pay the full amount due, all loans in the loan group may become delinquent, and it may be reported to credit agencies.
- If a payment is made without a remittance slip but matches the amount on the statement, it will be allocated as described.
- If the payment amount does not exactly match the statement, it will be allocated across all loans, including those in different loan groups that share the same payment address.
- Once a payment is allocated to a specific loan or loan, it is applied according to the terms of each loan’s promissory note.
Also Read: List of Top Student Forex Cards for Malaysia
HDFC Credila education loan repayment structure is designed to provide flexibility and ease for students. By understanding the repayment terms, moratorium period, and various repayment options, borrowers can better manage their loans and avoid unnecessary financial stress. Check some FAQs based on the same below:
FAQs
The HDFC Credila education loan repayment generally starts after the completion of the course. HDFC Credila offers a moratorium period of the course period plus one year or 6 months after getting a job.
HDFC 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.
Yes, HDFC Credila allows borrowers to make prepayments or part-payments towards their education loan without charging any prepayment penalties. This helps borrowers reduce their overall loan tenure and interest burden by paying off the loan earlier than the scheduled tenure.
If a borrower misses an EMI payment or pays less than the required amount, the loan can become delinquent. This may lead to late fees, and the delinquency may be reported to credit agencies.
Yes, borrowers may request changes to their EMI amount or loan tenure with HDFC Credila, based on their financial circumstances. For instance, extending the HDFC Credila education loan repayment tenure can help lower the monthly EMI. However, such changes are subject to the lender’s approval and applicable terms and conditions.
Borrowers can request a change in EMI date for HDFC Credila education loan repayment by contacting HDFC Credila’s customer support and submitting a formal request.
Borrowers can check their HDFC Credila education loan repayment schedule through the HDFC Credila online portal or request a repayment statement from the bank.
In case of an auto-debit failure, borrowers should immediately make a manual payment to avoid late fees and contact the bank for assistance.
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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