HDFC Credila Education Loan for Study Abroad: Complete Guide

The HDFC Credila Education Loan for Foreign Education can be one of the best options for Indian students looking to pay for studying overseas. HDFC Credila is the education financing arm of the popular Indian bank HDFC. Learn more about the HDFC Credila Education Loan for Foreign Education, how it works, eligibility, and its unique offers for students.¹

Supported Courses and Colleges for HDFC Study Abroad Loan

The HDFC Credila Education Loan for Foreign Education is available for over 950 courses, including MS, MBA, and Executive Management. It covers degree, diploma, and certificate courses in over 35 countries.¹ While the loan offers flexibility when it comes to where and what you study, each application is assessed on a case-by-case basis.

Costs Covered by HDFC Credila Loan

The HDFC Credila Education Loan for Foreign Education covers all the costs required for completing higher education abroad, including:¹

• Tuition fees.
• Living and hostel expenses.
• One round-trip economy ticket to the university or program.
• Examination, library, and laboratory fees.
• Purchasing books, instruments, equipment, computers, and other needs for the program.

HDFC reserves the right to discretion when approving discretionary expenses outside of the university fees.

Requirements to Apply

Here's what you need to know before applying for the HDFC Credila Education Loan for Foreign Education.

Student Qualification

The HDFC Credila Education Loan for Foreign Education is available for Indian students who have secured admission abroad. Students who have yet to apply or receive confirmation of their enrollment are not eligible- although some exceptions may exist.

The minimum qualification to get the loan for a graduate degree course is completing Standard XII (10 plus 2). For a postgraduate degree abroad, the student must have a graduate degree (10 plus 2 plus 3 or 10 plus 2 plus 4).²

Collateral Security

HDFC Credila offers collateral-free loans for foreign education up to INR 45 lakhs for qualifying applicants. Loan amounts above INR 45 lakhs require collateral. The bank accepts collateral of up to 100% of the loan value.¹

Co-applicant Requirements

HDFC Credila Loan for Foreign Education requires a co-applicant on the application, and both the student and the co-applicant must pass the bank's qualifying norms. The co-applicant can be:

• A parent.
• Spouse.
• Parents-in-law.
• Siblings over the age of 18 with salaried income.

The co-applicant must also be an Indian citizen and provide income proof with an application.

Upfront Payment

HDFC Credila Education Loan requires the borrowers to pay a non-refundable origination fee of 1.5% of the loan amount upfront.³

Interest Rates for HDFC Credila Study Abroad Loan

HDFC Credila loans have a floating interest rate, which means they can change from time to time. Currently, the effective interest rates for HDFC Credila Study Abroad Loan can range from 9.55% and 13.25%.¹

Rates retrieved on 8 June 2023. Please verify the latest rates from the HDFC Bank website.

HDFC Credila decides the interest rates based on a few factors, including the student’s application. The rate is linked to the HDFC Credila Benchmark Lending Rate (CBLR) with an additional percentage added, called the Spread. The Spread depends on various factors, including:¹

1. Student’s academic background.
2. Employability after completing the course.
3. The university’s reputation.
4. The financial strength of the co-applicant.
5. Ability to repay the loan.
6. Credit history of the applicants.
7. Availability of collateral.
8. If there is an existing HDFC banking relationship or not.
9. Other costs associated with issuing the loan.

The stronger the application, the more likely the interest rate will be lower. HDFC Bank offers Educational Loan Calculator to help determine the costs of a loan based on the loan amount, tenure, and interest rate.

Repayment Terms

HDFC Credila Loan For Foreign Education offers a moratorium, or a grace period, during which no repayments are required, for the entire course period plus 12 months after. After the moratorium ends, you will be expected to start making monthly payments against the loan. The loan tenure is available for up to 14 years.¹

How to Apply for HDFC Credila Loan For Foreign Education

You can apply for the HDFC Credila Loan For Foreign Education online through the Vidya Lakshmi Portal or by completing the loan application on the HDFC Credila website.

Once you submit the form, a representative from HDFC Credila will reach out to you to process the loan application. You will be required to provide the necessary supporting documents to HDFC Credila:

• A fully completed loan application form.
• Two passport-sized photos of the student and co-applicant.
• KYC documents, including ID and residence proof.
• Student’s academic mark sheets and documents
• Proof of admission to the university or program abroad.
• Previous 8 months of bank statements of the borrower and co-applicant.
• Income proof documents of the co-applicant.
• Any property documents if using it as collateral.

HDFC Credila has the right to request additional documents to better assess your application.

Loan Disbursal Process

Once the education loan is approved, you can start reviewing how the loan is paid out and what to expect during the process.⁵

• Make sure you have paid the origination fee.
• Decide on the disbursement date based on any needs for your visa and the university's tuition fee payment schedule.
• Submit the program's fee payment schedule so the bank can make timely payments to the university.
• Borrowers must visit HDFC Credila's office to execute the loan agreement documents.
• Provide any additional documents HDFC Credila requires, such as tuition or other fees paid directly to the university.
• Arrange any foreign exchange requirements you may need as a student abroad.

CreditOneStop
On the Credila OneStop portal, student borrowers can access value-added services like offers and benefits provided by HDFC Credila.⁶

Save with international remittance when you choose Wise

Starting your journey as an international student can involve making multiple payments. Make international remittances easier with Wise, which uses smart tech to make money transfers from India safe, secure - and cheap.

Wise can help you save⁸ when sending money to bank accounts abroad. You can save money on international transfers with Wise's low transfer fee and the mid-market exchange rate, which is the same as the one you see on Google. So make university payments or living expenses a breeze when you use Wise to send money abroad from India.

And once you arrive abroad for your studies, check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.