Feeling stressed out about your current lender’s high-interest rates and unsatisfactory education loan terms? It’s time to switch to a new lender and transfer your loan to better rates. Many options are available, among which is the HDFC Credila education loan transfer. This blog will help you understand everything about an education loan transfer at HDFC Credila in detail.
| HDFC Credila Education Loan Transfer Overview | |
| HDFC Credila Loan Transfer Eligibility | -Good CIBIL score -Record of regular loan repayments is required. |
| HDFC Credila Education Loan Transfer Documents | -Repayment statements from the previous bank -Other KYC & financial documents |
| Benefits of transferring loan to HDFC Credila | -Competitive interest rates -Flexible repayment terms -Tax benefits -Online application |
Why Choose HDFC Credila For Education Loan Transfer?
Well, there isn’t one but many reasons you should choose HDFC Credila. Firstly, HDFC Credila is a bi-company of HDFC Bank, the most well-known bank in India for many years. Secondly, HDFC Credila is dedicated to student loans, so it offers competitive loan features to students studying in India and abroad. Given below are some HDFC Credila education loan features:
| Key features | Description |
| Loan Upper Limit | INR 1.5 Cr. |
| Rate of Interest | 9-12.5% |
| Repayment Tenure | Max 12 years |
| HDFC Credila Moratorium Period | Education course duration + 1 year grace period |
| Collateral Option | Residential Flat, Residential House, Non-Agricultural Land, A Fixed Deposit, assigned in favour of Credila |
| Processing Fees | 0.5 – 1% of the loan amount |
| Co-borrower option | Yes |
| Tax benefits | Section 80E |
| Courses covered | Higher education in India, USA, and abroad |
Some more benefits of switching to HDFC Credila are:
- Ease of online application
- Acceptance of co-borrower(s) and collateral from multiple cities
- Up to 15 years of flexible EMI repayment
- Competitive interest rates
- Tax benefit under Section 80E
Eligibility Criteria Loan Transfer
The eligibility for an education loan transfer to HDFC Credila is the same as what it should be for an average student loan. But there are a few more things NBFCs like HDFC Credila might check out. Read through the list below:
- There shouldn’t be any more disbursements left to be taken from the current lender, or you shouldn’t be asking for a new loan amount from the current lender.
- All the repayments you have made to your new lender up until now should be made in the form of EMIs, and your EMI payments should also be regular to avoid a low CIBIL score in the future.
- In some cases, the new bank takes over collateral until you pay off the loan entirely with interest if your current loan is collateral-based.
Steps To HDFC Credila Education Loan Transfer
Transferring your education loan to HDFC Credila is easy, though! Let’s say you have taken an education loan and are unsatisfied with their repayment policy. So you decide to go for a student loan refinance, a.k.a. education loan transfer. In such a situation, you must:
- Step 1: Apply for an education loan transfer at your current bank.
- Step 2: Your current lender will then give you a statement of the pending dues of your loan.
- Step 3: You can submit this statement to HDFC Credila along with the refinancing form.
- Step 4: As usual, HDFC Credila will start with the education loan process.
- Step 5: Once your loan is approved, the new bank generally sends a cheque to the to your previous lender of the repayment amount and starts with the loan on the remaining loan amount.
Documents Required For Student Loan Transfer
The documents required for an education loan transfer may vary among the lenders. However, given below is a standard list that you can refer to and gather for easier access:
| Document | Description |
| Loan Application Form | Completely filled-in |
| Statement of the loan repayment dues | Your previous lender’s detailed repayment statement. |
| Photographs | Two passport-size photographs |
| PAN Card | Student and Parent/Guardian/Co- borrower’s PAN Card |
| Aadhaar Card | Student’s and Parent/Guardian/Co-borrower’s Aadhaar Card |
| Proof of Identity | Driving Licence/Passport/Aadhaar/any other acceptable photo identity as per KYC norms |
| Proof of Residence | Driving Licence/Passport/Electricity bill/Telephone bill |
| Bank Account Statement | Student/Co-borrower/Guarantor’s bank account statement for the last 6 months |
| IT Return/Assessment Order | Parent/Guardian/Co-borrower’s IT return/assessment order for the previous 2 years (if IT Payee) |
| Statement of Assets & Liabilities | Parent/Guardian/Co-borrower’s brief statement of assets & liabilities |
| Proof of Income | Salary slips/Form 16 of Parent/Guardian/Co-borrower |
Benefits Of Education Loan Transfer In General
A loan transfer will probably be the best decision you’ll ever make about your student loan. Given below are a few perks you would want to know about:
- Lesser Interest Rates: Transferring education loans to a new bank can help you with lower interest rates. Your credit history improves by gradually repaying your initial amount with the previous lender. Plus, you are employed, which means there is a lesser risk of loan defaults.
- Eligibility for education loan subsidy under government schemes: If you transfer your loan to a government bank or private bank that offers interest subsidies, you are eligible for interest subsidy schemes offered by the government.
- Additional Repayment Plans: Some banks provide helpful plans like income-driven repayment plans, which make EMIs more affordable.
FAQs
Q1. What is the interest rate for the HDFC Credila Education Loan Transfer?
If you transfer a secured or unsecured loan through HDFC Credila, the interest rate will vary based on your loan transfer amount.
Q2. Does Education loan transfer affect credit score?
Your credit score won’t be affected if the loan transfer is for general reasons, such as higher interest rates and unsatisfactory terms. You may lose your credit score if you default your loans with your current lender and switch to another.
Q3. How long does the HDFC education loan transfer process take?
An HDFC loan transfer process takes about 4-5 days.
Q4. How Do I Check HDFC Credila loan Transfer Status?
You can check the HDFC Credila loan transfer status on their dashboard.
Q5. What are the HDFC Credila loan transfer requirements?
You just have to submit the bank statement given by the current lender stating your loan repayment dues or the remaining loan amount to be paid. Secondly, your repayment record should be regular to avoid any CIBIL Score issues.
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