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FAQs

We will determine your loan eligibility largely by your income and repayment capacity. Other important factors include your age, qualification, number of dependants, your spouse's income (if any), assets & liabilities, savings history and the stability & continuity of occupation.

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EMI refers to the ‘Equated Monthly Installment’ which is the amount you will pay to us on a specific date each month till the loan is repaid in full. The EMI comprises of the principal and interest components which are structured in a way that in the initial years of your loan, the interest component is much larger than the principal component, while towards the latter half of the loan, the principal component is much larger.

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‘Own Contribution’ is the total cost of the property less HDFC’s loan.
For your convenience, HDFC offers various modes for repayment of the loan. You may issue standing instructions to your banker to pay the installments through ECS (Electronic Clearing System), opt for direct deduction of monthly installments by your employer or issue post-dated cheques from your salary account.

You can apply for a Home Loan at any time once you have decided to purchase or construct a property, even if you have not selected the property or the construction has not commenced.

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Market value refers to the estimated amount that is expected to be fetched on the property as per the prevailing market conditions.

You could collect an application form from our nearest office or simply download it from our website and submit it yourself along with the supporting documents and the processing fee cheque at any HDFC office that is convenient to you. Alternatively you have the option to make an online application from anywhere in the world by clicking on ‘Instant Home Loan’ on our website and also know your Home Loan eligibility instantly.

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Yes. You are eligible for tax benefits on the principal and interest components of your Home Loan under the Income Tax Act, 1961. As the benefits could vary each year, please do check with our Loan Counselor about the tax benefits which you could avail on your loan.

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.
It is extremely important for you to ensure that the title to the property is clear, marketable and free from encumbrance. There should not be any existing mortgage, loan or litigation, which is likely to adversely affect the title to the property.

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Repayment of the principal commences from the month following the month in which you avail full disbursement of your loan. Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

In the case of under construction properties, HDFC also offers you a unique ‘Tranching’ facility wherein you can choose the installments you wish to pay till the time the property is ready for possession. Any amount over and above the interest which is paid by you goes towards principal repayment, thus helping you repay the loan faster. This is especially useful in case your disbursements are likely to be spread over a longer period of time.

The ’Agreement to Sell’ in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.

In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.

Yes, you could go in for a ‘Home Conversion Loan’ whereby your existing loan (which you took to buy your current home) could be transferred to the new house with additional funds for the incremental cost of the new house, subject to your loan eligibility. This means you can move into your new home without having to go through the hassle of pre-paying your existing loan.

Yes, you can apply for a loan to us for repaying a Home Loan availed by you from another Bank / Housing Finance Company or even your employer. For more details on ‘Balance Transfer’ kindly contact our nearest office.

An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.

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You can take disbursement of the loan once the property has been technically appraised, all legal documentation has been completed and you have invested your Own Contribution in full. You can submit the request for the disbursement of your loan by visiting any of our offices or online by logging on to ‘Online Access for Existing Customers’.

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Once we receive your request for disbursement, we will disburse the loan in full or in installments, which usually do not exceed three in number. In case of an under construction property, we will disburse your loan in installments based on the progress of construction, as assessed by us and not necessarily according to the developer’s agreement. You are advised in your own interest to enter into an agreement with the developer wherein the payments are linked to the construction work and not pre-defined on a time-based schedule.

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Yes, you can repay the loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable prepayment charges. We also offer a free-of-charge facility to accelerate your loan repayment called ‘Accelerated Repayment Scheme’. This option provides you the flexibility to increase the EMIs every year in proportion to the increase in your income which will result in you repaying the loan much faster.

Yes, you will have to ensure that your property is duly and properly insured for fire and other appropriate hazards during the pendency of the loan. You will also have to produce evidence thereof to HDFC, each year and/or whenever called upon to do so. HDFC should be the beneficiary of the insurance policy.

In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value. Therefore such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.

  • Exam/Library/Lab fees
  • Caution deposit / Refundable deposit asked by the institution / Building fund - supported by Institution bills / receipts
  • Purchase of Books / equipments / instrument / uniforms
  • Travel expenses / passage money for studies abroad
  • Purchase of computers - essential for completion of the course
  • Insurance
  • Miscellaneous expenses related to the course - like study tours, project work, thesis, etc.

HDFC HDFC Credila does not have an upper limit on the loan. We process loans exceeding Indian Rupees 25 Lakhs also, subject to the case meeting HDFC HDFC Credila's credit and underwriting norms as applicable from time to time.

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You can take a Education Loan for foreign education on the following courses:

  • Masters
  • Management Courses (Full-Time)
  • Engineering Courses
  • Other courses may be considered on a case to case basis

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  • Yes, a co-applicant is required for all Full-Time courses
  • Primary Co-Applicants –Parents, Spouse, Siblings
  • Secondary Co-Applicants- Father-In Law, Mother-In-Law, Brother-In-Law,Paternal/Maternal Uncle/Aunt

Education loan is normally taken for financing Tuition fees, living expenses (hostel etc.), books and periodicals and sometimes traveling

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  • The preferred way to declare ‘Assured Funds to Universities’
  • Better acceptance of the sanction letter over the solvency letter
  • Increases your chances of getting admission to your dream college
  • No last minute surprises specially during Visa time:
  • Know your loan eligibility in advance
  • Quick and hassle free process to get a sanction letter
Yes. A moratorium holiday is available for the select courses.

HDFC Credila provides education loan to Indian students for higher studies in India and abroad. HDFC Credila has funded Indian students for pursuing higher studies in over 2000 institutes across 36 countries.

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Yes you can apply before securing an admission.

HDFC Credila does not have an upper limit on the loan. We process loans exceeding Indian Rupees 25,00,000 also, subject to the case meeting HDFC HDFC Credila's credit and underwriting norms as applicable from time to time plus HDFC Credila is the only lender that not only finances up to 100% of the cost of education.

HDFC Credila’s unique education loan offers the flexibility of paying only simple interest (PEMI) during the course period and principle plus interest (EMI) after the completion of studies and grace period.

Yes, every HDFC Credila borrower or co-borrower (any one) is entitled for Tax benefit under 80E of Income Tax Act, 1961.

Yes. The tuition and hostel fees (if any) will be disbursed directly to the educational institute as per the schedule and structure of fees given by them.

The maximum tenure of the loan can be 10 years, including the Moratorium period.

You have the option of servicing simple interest during moratorium period. Simple interest will be calculated on the loan amount disbursed payable monthly.

You have the option of repaying the loan through a Standing instruction, ECS or Post-Dated Cheques.

Yes. A moratorium/repayment holiday is available for select courses.

Usually, middle-income group people apply for education loans. However, because of:

  • Rapidly rising costs of education
  • Income tax benefit under 80 E of IT Act
  • Students wanting to take their own financial responsibilities to preserve the parents savings
  • build positive credit history

Even affluent families are going for education loan

  • Rate of interest will be floating rate of interest linked to HDFC Credila's Benchmark Lending Rate (CBLR)
  • The interest will be calculated using Simple Interest Rate
  • Floating rate of interest to be (HDFC Credila's CBLR + Spread)% per annum
  • HDFC Credila's current CBLR is 12.10% per annum (subject to change from time to time)
  • A Spread is determined on the risk profile of the case which vary on account of a number of factors such as student's academic background, employability of the selected course from a selected college and country of study, financial strength of the co‐borrower, loan repayment capability, credit history, collateral offered or not, serviceability of the loan through HDFC Credila's branch network, cost/s associated with underwriting and servicing the loan, etc.
Even affluent families are going for education loan

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  • The loan amount will be disbursed in Indian Rupees
  • HDFC Credila will disburse the tuition fee to the educational institute either directly or through an authorized servicer
  • The tuition fee will be disbursed in installment as per the requirement of the specific educational institute
  • The loan amount related to other expenses will be disbursed in installments spread over the duration of the study as per HDFC Credila's underwriting norms as applicable from time to time

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  • Loan interest re-payment will start immediately after disbursement of the first installment of the loan
  • Tenure of an education loan consists of Duration of Study + Grace Period after the Study + Repayment Period
  • HDFC Credila offers maximum tenure of 10 years
  • The loan tenure is however, subject to the factors such as the repayment capacity of the customer/s, future prospects of the course, age of the co‐applicant, etc. and further subject to HDFC Credila's credit and underwriting norms as applicable from time to time. However, HDFC Credila would endeavour to determine the repayment period to suit your convenience.
  • Monthly repayment amount will be deducted from the bank account of the borrower/co-borrower using Electronic Clearing System (ECS)

The following types of collateral are accepted

  • Residential Flat
  • Residential House
  • Non‐Agricultural Land
  • A Fixed Deposit, assigned in favour of HDFC Credila

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You can take a Loan Against Deposit after three months from the date of deposit and up to 75% of the deposit amount, subject to the other terms and conditions framed by HDFC. Interest on such loans will be 2% above the deposit rate.

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Interest on your deposits will be credited directly to your account through Electronic Clearing Service wherever this facility is available.

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You will be paid Interest on the deposit from the date of realisation of the cheque or RTGS transfer to HDFC's bank account. Interest on deposits placed under Monthly Income Plan, Non-Cumulative Option and Annual Income Plan shall be paid on fixed dates as given below:

Deposits Plan Fixed Dates
Monthly Income Plan (MIP) The last day of every month
Non-Cumulative : Quarterly Option June 30, September 30, December 31 & March 31
Non-Cumulative : Half-Yearly Option September 30 and March 31
Annual Income Plan (AIP) March 31

Cumulative Interest Option: Interest will be compounded annually on 31st March of every year after deducting the tax, wherever applicable. The principal along with the interest will be paid on maturity once the discharged deposit receipt is received by us. Interest amount (net of TDS - where applicable) will be paid through ECS at all centres where ECS facility is available. Where ECS facility is not available, interest cheque will be paid through Account Payee cheque drawn in favour of the first - named depositor along with his bank account details furnished. In case of MIP, post-dated interest cheques for every financial year will be issued in advance. Interest on Monthly Income Plan under Variable Rate Deposit will be credited to the depositor's bank account on the last day of the month, through ECS only. Interest will accrue after the maturity date only if the deposit is renewed.

Rate of interest (RoI) will be reset at the beginning of each interest period. RoI prevailing on the first day of the interest period will be applicable for the entire interest period.

No tax deduction at source on interest paid/credited upto Rs. 5000/- in a financial year. Income tax will be deducted at source under Section 194A of the Income Tax Act, 1961, at the rates in force. If the depositor is not liable to pay income tax and the interest to be paid/credited in a financial year does not exceed the maximum amount which is not chargeable to income tax, the depositor may submit a declaration in Form No. 15G so that income tax is not deducted at source. In such cases, PAN (Permanent Account Number) must be quoted in Form 15G, else the form is invalid. Senior Citizens (60 years and above) may submit a declaration in Form No. 15H. Section 139A(5A) of the Income-tax Act, 1961 requires every person receiving any sum or income from which tax has been deducted to intimate his PAN to the person esponsible for deducting such tax. Further, 139A(5B) requires the person deducting such tax to indicate the PAN on the TDS certificate. In case PAN is not mentioned, the rate of TDS would be 20% as per section 206AA(1) of the Income-Tax Act, 1961. In case of deposits of Rs. 50,000 and above, it is mandatory to furnish PAN.

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Your request for premature withdrawal may be granted at the sole discretion of HDFC and cannot be claimed as a matter of right, subject to the Housing Finance Companies (NHB) Directions, 2010, as applicable from time to time.

Premature withdrawal will not be allowed before completion of three months from the date of deposit. In case of request for premature withdrawal after the expiry of three months, the rates given in the following table shall apply.

Months completed from the date deposit  Rate of Interest Payable
After 3 months but before 6 months The maximum interest payable shall be 4% per annum for individual depositor, and no interest in case of other category of depositors
After 6 months but before the date of maturity The interest payable shall be one percent lower than the interest rate applicable to a public deposit for the period for which the deposit has run or if no rate has been specified for that period, then two percent lower than the minimum rate at which the public deposits are accepted by HDFC.
For renewal or repayment of deposit, you must surrender the duly discharged deposit receipt to HDFC at least a week before the date of maturity. In case of renewal, the prescribed application form signed by all depositors is also required to be submitted simultaneously. When the date of maturity falls on any day on which HDFC's office remains closed the repayment will be made on the next working day. Repayment of deposit will be made by Account Payee cheque drawn favouring the first depositor or by crediting the amount directly to the first depositor's bank account through NEFT/RTGS, based on the request from the depositor.

Only individual depositor/s, singly or jointly, can nominate a single person under this facility. In case the deposit is placed in the name of a minor, the nomination can be made only by a person lawfully entitled to act on behalf of the minor. Power of Attorney holder or any person acting in representative capacity as holder of an office or otherwise cannot nominate. The nominee shall have the right to receive the amount due in respect of the deposit and payment by HDFC to the nominee shall constitute full discharge to HDFC of its liability in respect of the deposit. Nominee's name will be printed on the Fixed Deposit receipt, unless mentioned otherwise.

In terms of the Prevention of Money Laundering Act, 2002, the rules notified thereunder and KYC Guidelines issued by the National Housing Bank (NHB), you are required to comply with the KYC requirements by submitting the following documents:

  • The latest photograph
  • A certified copy of the proof of identity
  • A certified copy of the proof of address

In case you have already submitted the above documents in an earlier deposit, then you need not submit the above documents again, but must provide the reference of your customer number or deposit number.