Student Loan Product

Student Loan Product

This is an Indian Rupee denominated student loan for following students:

* Indian students going overseas and
* Indian students attending colleges in India

The loan will be disbursed in India in Rupees which can be converted in foreign currency, if needed, by the student.
Repayments of the loan to be made by the borrower in Indian Rupees only.

Eligibility

* Borrower must be an Indian citizen
* Co-borrower must be an Indian citizen
* Borrower must be 18 years of age or older
* Co-borrower must have a bank account in any bank in India with check writing facilities
* Confirmed admission in the colleges before disbursement
* Borrower and Co-borrower to meet Credila's underwriting criteria

Co-borrower Requirement

* The loan will be co-signed by a co-borrower in India
* A co-borrower is mandatory for all the student loans
* The co-borrower can be parent, brother, sister, guardian, or any other relative
* Co-borrower's role would be, necessarily, like the primary debtor

What Costs Are Covered?

* All of the tuition fees as determined by the college/University
* Up to 75% of other expenses including living expenses, books, etc. as determined by the college/University
* Up to INR 50,000 for travel to abroad from India, if applicable

Loan Amount

Minimum Loan Amount

* Indian Rupees 1,00,000

Lifetime Maximum Loan Amount

* Indian Rupees 20,00,000

Rate Of Interest

* Rate of interest will be floating rate of interest linked to Credila's Benchmark Lending Rate (CBLR)
* The floating interest rate will calculated monthly based on the prevailing CBLR at the beginning of the month
* The interest will be calculated using Simple Interest Rate
* Floating rate of interest to be Credila's CBLR + 1.00% per annum

Loan Disbursement

* The loan amount will be disbursed in Indian Rupees
* Credila's servicer will disburse the tuition fee directly to the educational institute
* 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

Loan Re-payment Terms

* Loan Interest Re-payment
1. Loan interest re-payment will start immediately after disbursement of the first installment of the loan
* Loan Principal Amount Re-payments must commence
1. After 6 months of completion of studies by the borrower or
2. 3 month after borrower getting an employment or starting a business or
3. 3 month after borrower discontinuing the educational program,
whichever is earlier.
* The principal and interest is repayable in 90 monthly installments
* Monthly repayment amount will be deducted from the bank account of the borrower/co-borrower using Electronic Clearing System (ECS)
* Post Dated Checks (PDC) to be collected as security cheques from the borrower/co-borrowers

Collateral

* The following types of collateral are accepted
1. Non-Agricultural Land
2. House
3. Apartment/Flat
4. A life insurance policy for the student, assigned in favor of Credila, for the value of at least the amount of loan approved

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