Every year number of stduents,collegians and professionals in india pursue higher studies or MBA in India or abroad. Famous destinations like USA, Canada, UK and Europe have great quality of life and education to fulfill their dreams. As the educational expenses around the globe continue to grow ,they require some form of financial aid or loan. However, there are number of loan approving bodies in India and US both. In USA, usually federal loans, perkins loans like FAFSA etc are quite sufficient but have obligations and require a US co-signer. Moreover,these financial aids are not available to international students.
Hence, indigenous financial bodies like CREDILA provide indian students the loan facility. Credila says funds even before I-20 to students, But Are these institutions living upto the expectations? such institutions levy a big collateral security from applicants, in form of tangible and fixed assets such as Home and fixed deposit etc. Usually parents act as co-signer for approval of students loan and repayment go upto a period of 20-25 years. The collateral security is 4X value of loan and much less than MV (market value) of the house property , home etc. Also, repayment amount comes out to be 4X loan amount with interest added compounded anually for 20-25 years.CREDILA never ever release a single penny to students who dont satisfy any of the above mentioned obligations. Hence, in hindsight, students and their parents in a quest to secure better future are so much drowned in debt that theres no coming back!!
Similar instances have been drawn from US institutions such as Salie Malie bank or GSRC. But with a vibrant economy and revised reforms by President Obama has eased out things a bit. But countries like India and Pakistan are still to come to terms with it. Indian govt. has unleashed a lot of reforms for students who are meritorious and looking for need based finance but real picture is that its all on papers only. Indian Banks and profit making bodies have devised a way to exploit the conditions. Such financial banks have actually become money shops where they never care for students and their future. However, SBI and some famous banks might be an exception to this..
Hence, a potential education loan applicant should consider all options and short & long-term disadvantages and benefits before going for a student loan in india.
Very unprofessional. For a bank like HDFC to provide such a service is really astonishing. One year into my masters program abroad, Credila finally decide to refuse my loan amount. This after I was assured of the loan prior to departing India. And also after paying the hefty fees, initial deposit, property papers, blank cheques, etc. Now they are with all my papers and are not responding at all inspite of repeated calls and emails. I hope they have some educated lawyers at least!!
Credila sucks. Not only do they charge a high interest rate but also charge a service tax of 12.5% on the interest we pay. They had also charged us 1% of the loan to be sanction as an initial application fee. They have looted us and sucked the blood out of us. Dear Students, I request you to never approach credila, ever.
Hey,
I totally agree with SRSS. I took loan from Credila Bangalore in year 2009 and till year 2011-2012 I am suffering. NEVER EVER DO ANY DEAL WITH CREDILA.
There interest rate is double than normal banks. If that doesn't sucks you out then, in their Agreement they mention that their rate of change is flexible with market rate and may chage with or without prior notice. It means even when your interest is too high they will change rate of interest as ans when they wish. In last 2 year they have already done 3 time to me.
If you are still okay then, listen this, they charge you some additional interest on the name of handling fees or charges which goes as high as 2-3 %. For God sake 2-3% is hell high on total Money that you lend and for what, I have not understood till now.
If you are still thinking to lend money from Credila then, you know what, nothing will be ever informed or communicated with you by Credila. Not in the beginning, and not even while changes are enacted.
So whoever reading this, I assure you will be cheated by Credila in all means possible so, NEVER EVER DEAL WITH CREDILA.
I want education loan for my daughter . She is going to phillipines for MBBS . The couse duration is 5.5 years.I contacted education loan section but they said they will provide loan only for 2 years. And also monthly installment basis. Why cant I get loan on OD basis for 5.5 years? if you are not able to give loans then why you people advertise about the loans abroad.