HDFC Credila Financial Services, a leading Non-Banking Financial Company (NBFC), has emerged as a key player in realizing students’ educational dreams. Pioneering as India’s first specialized education loan lender, HDFC Credila offers tailored financial solutions for students pursuing higher education globally, spanning over 1000 universities in 35 countries. This overview delves into the distinct features of HDFC Credila’s education loans, including collateralized and uncollateralized options, interest rates, and country-specific loan offerings.

Secured education loans vs. unsecured education loans

HDFC Credila provides flexibility with both secured and unsecured education loans. Secured loans as we know require collateral against the loan amount such as property, FD, etc. Whereas, Unsecured loans do not require collateral but require a co-applicant.

HDFC Credila offers a range of education loan options designed to cater to the diverse financial needs of students aspiring to pursue higher education. For those seeking loans with collateral, HDFC Credila provides a solution with loan amounts above 7.5 lakhs. The interest rates for such loans are capped at 13.3%, ensuring a competitive and reasonable repayment structure. This collateralized option allows students to secure the necessary funds for their education while leveraging their assets.

In contrast, HDFC Credila also extends its support to students who may not have substantial collateral to offer. For loan amounts up to 7.5 lakhs, the non-collateralized option comes into play, offering financial assistance at interest rates ranging from 10.5% to 14%. This flexibility caters to a broader spectrum of students, accommodating those with varying financial backgrounds and asset portfolios.

What sets HDFC Credila apart in the realm of education loans is its commitment to fully secured loans for students planning to study in any country. This distinctive approach differentiates HDFC Credila from other lenders that typically approve partially secured loans. Irrespective of the destination country, HDFC Credila provides the option of a fully secured education loan, with a maximum loan amount reaching up to INR 1 crore. The interest rates for these secured loans fall within an attractive range of 10.0% to 10.5%, further enhancing the affordability of education financing for students pursuing studies abroad.

This emphasis on fully secured loans reflects HDFC Credila’s dedication to ensuring that students can access the financial support they need, regardless of the destination of their educational pursuits. By offering competitive interest rates and a comprehensive loan structure, HDFC Credila stands as a reliable partner for students embarking on their academic journeys on the global stage.

For Master’s courses in the US, HDFC Credila tailors its offerings based on the applicant’s GRE or GMAT scores and university rankings. Loan amounts and interest rates vary for STEM and non-STEM courses.

Key Points to Remember about HDFC Credila Education Loan Interest Rate

1. Eligibility for a loan without a financial co-applicant based on GRE score and top 100 university ranking.
2. Concession in ROI for high GRE or GMAT scores, top-ranked universities, and a co-applicant with good income.
3. Special eligibility for a loan of up to 75L for select universities.
4. HDFC Credila extends its services to Canada, Germany, Australia, France, Singapore, Dubai (UAE), the United Kingdom, Ireland, and New Zealand. The table outlines loan features for Master’s courses in Canada and other countries.

How HDFC Credila Calculates Education Loan Interest Rate

Simple Interest Formula: SI = Principal x Rate x Time/100

Compound Interest Formula: A = P(1 + r/n) ^ nt

The HDFC education loan interest rate operates on a floating basis, directly linked to the HDFC Credila Benchmark Lending Rate (CBLR). This floating interest rate is calculated as (HDFC Credila’s CBLR + Spread)% per annum. Currently, the Benchmark Lending Rate (CBLR) is set at 13.80% per annum, subject to potential adjustments in the future.

The determination of the Spread is intricately tied to the risk profile of each individual case. This risk assessment takes into account various factors, including the academic background of the student, the employability prospects associated with the chosen course, the reputation of the college and country of study, the financial strength of the co-borrower, the repayment capability of the loan, the credit history of the applicant, the presence of collateral (if any), the feasibility of servicing the loan through HDFC Credila’s branch network, and the associated costs linked to the underwriting and servicing of the loan. These considerations collectively influence the Spread and contribute to the overall interest rate structure, ensuring a nuanced and personalized approach to each student’s financial circumstances.

Interest rate is a floating rate linked to HDFC Credila’s Benchmark Lending Rate (CBLR) with a spread determined by the risk profile.

HDFC Credila Education Loan Interest Rate

Below are tabulated interest rates offered by HDFC Credila for various countries and courses.

Please note that interest rates are subject to change.

When pursuing an education loan, thorough consideration of financial circumstances, collateral value, and loan terms is crucial. HDFC Credila’s diverse offerings and personalized approach empower students to make informed decisions aligned with their educational goals. As the educational landscape evolves, HDFC Credila remains a reliable partner in transforming aspirations into reality.