HDFC Education Loan Documents Required

In an Education Loan, the student is the principal borrower. The parent is the co-applicant. Usually, HDFC Credila provides loans for higher education. Hence, the student is invariably over the age of 18 when applying for the loan. Therefore, the student is legally eligible to enter into a loan contract.

Consequently, the student must provide their KYC documents. The student is not an earning member. Hence, the parents join as co-applicants. Therefore, they have to submit KYC documents, as well.

The Education Loan repayment starts after the student completes their education. The rules stipulate that the repayment starts after one year of completion of the education or six months after the student lands a job, whichever is earlier.

HDFC Credila would like to ensure that the parents are capable of repaying the instalments if the student is not able to secure a reasonable job. Therefore, HDFC Credila requires the co-applicant to provide income documents.

No, HDFC Credila understands the plight of students better than most Education Loan providers. They know that students need financial assistance to pursue their dreams. Therefore, HDFC Credila gives more importance to the student's educational credentials than the income of their parents. It explains why they offer loans up to even 40 Lakhs to exceptional students without any collateral.

HDFC Credila does not accept the second mortgage of the property mortgaged to other banks. The only way out is to transfer the Home Loan to HDFC Ltd. HDFC Ltd has provisions to take over the existing Home Loan and ensure that the company has an entire charge over the security. Thus, it covers Education Loan liability, as well.

HDFC Credila offers provisional sanction of the Education Loan to students before they secure admission to the university of their choice. It gives the student the confidence to proceed with the admission process vigorously. As explained earlier, HDFC Credila understands students and their plight better than other banks do. Secondly, a provisional sanction does not entail that HDFC Credila disburses the loan amount. It is an assurance that the student will get a confirmed sanction letter after securing admission.

Yes, HDFC Credila has a provision for changing the university after providing the sanction letter. It can happen that the student might have secured admission to a better university. As HDFC Credila understands students better, it allows the students to study in the university of their choice. Changing the name of the university in the loan records is not a big deal at all.

Usually, HDFC Credila or any other bank does not grant further loans to NPA borrowers. However, if a borrower has a poor CIBIL score, HDFC Credila exercises caution by perusing the CIBIL report deeper to ascertain the cause of the poor credit score. If the reason is a continuous default in repayment, HDFC Credila does not sanction Education Loan. However, if it is for other purposes, it takes a call after verifying the value of security and the future employment prospects of the student. The interests of students are foremost for HDFC Credila.

It depends on various factors, such as:

• The country where the student proposes to study is a crucial factor. Countries like the US and Canada have a high preference.
• The academic record of the student is a critical aspect. If the student has impeccable academic credentials with a high GRE score, HDFC Credila can sanction Education Loans even up to 40 Lakhs without collateral.

Yes, there is no restriction for a parent to approach HDFC Credila for a second Education Loan for another child. As explained earlier, HDFC Credila values the student's educational achievements more than anything else. If the second child has the necessary credentials, HDFC Credila does not have any problems in sanctioning another Education Loan.