Understanding Credila Education Loan Interest Rates

Credila, formerly known as HDFC Credila, is an education loan company that offers secured and unsecured education loans. It helps Indian students fund tuition, accommodation, travel, and insurance costs for studying abroad, with loans of up to ₹2 crore. As of 2026, the interest rate for a secured loan starts at 9.95% p.a., while for an unsecured loan it starts at 10.25% and can vary depending on eligibility and the relevant loan scheme. Credila offers a shorter processing time (7 to 15 working days), provided the student submits all documents. The eligibility criteria are relatively flexible compared to conventional bank loans, with low processing fees of 1.25% of the loan amount + GST.

This guide explains the key factors that affect the interest rate and overall cost of education, helping students understand what they can expect to pay. 

Credila's secured loan starts at 9.95% p.a., and for unsecured loans, Credila does not publish a fixed figure. It publishes unsecured loan interest rates as “based on eligibility”. Overall, based on loan sanction cases reviewed by WeMakeScholars and publicly reported industry rates, the Credila education loan interest rate for unsecured loans can range from 10.25% to 11.25% p.a. 

The above-mentioned interest rate of the Credila education loan should be considered a starting rate. This is because the rate is floating, which means it's not fixed for the entire loan tenure. It can change when the benchmark interest rate is revised. The Credila education loan interest rate offered to the student can vary depending on factors such as:

• Student's academic profile

• Co-applicant financial position

• Country and university

• Collateral offered

• Credit assessment

The simplified table below explains the Credila student loan interest rate:

*Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the lender’s discretion.

Credila revises its interest rate periodically, and hence students should always confirm the latest rates directly with Credila and verify them against their final loan offer or sanction letter.

Note: Credila Financial Services Limited, formerly known as HDFC Credila Financial Services Limited, is a specialized education loan provider in India. Although Credila separated from HDFC Limited in 2023, students still search for “HDFC Credila education loan interest rate”. For current rates, students should refer to Credila's latest interest rate information.

The interest rate offered by Credila is floating. According to Credila's official interest rate policy, its floating-rate education loan is linked to the Credila Benchmark Lending Rate (CBLR). The CBLR is calculated periodically based on factors such as market conditions, interest rate trends, competitors' benchmark rates, and the company's own funding costs and margins. 

Therefore, the key takeaway is that Credila offers different rates for each student. The interest rate applicable is tailored to students based on their profile, loan structure, and internal benchmarks. Understanding the interest rate is only one part of taking an education loan. Students should also understand the application documentation, sanction, disbursement, and repayment stages involved in getting an education loan. Students who want to understand the complete education loan process can read our step-by-step guide for studying abroad.

Knowing the education loan interest rate is only the first step; students also need to understand how the interest rate, loan amount, and repayment tenure affect their monthly EMI. Students can use the standard EMI formula to estimate their monthly repayment based on the loan amount, interest rate, and repayment tenure.

The standard formula is:

EMI = P × R × (1 + R)ⁿ / [(1 + R)ⁿ − 1]

Where:

• P = Principal loan amount

• R = Monthly interest rate

• N = Number of monthly instalments

Let's consider an example to understand the calculation:

Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the lender’s discretion.

Based on the calculation, Student A will pay approximately ₹4.56 lakh in total interest, while Student B will pay approximately ₹5.86 lakh. Student B will pay around  ₹1.30 lakh more in interest over the 10-year tenure. This shows how even a small difference in the interest rate can significantly affect the overall repayment cost.

WeMakeScholars has an education loan EMI calculator that helps students get a realistic number for the loan amount and achieve their study abroad goals.

Now let's understand the different products offered by Credila and their corresponding interest rates to help students compare their loan options.

One of the main factors affecting the interest rate is whether the student chooses a secured or unsecured loan.

• Secured loans: These are loans that are backed by residential, commercial, or industrial property, a vacant plot of land, or a fixed deposit. This means the loan is backed by acceptable collateral or security. Here, the lender’s risk is lower because of the security pledged. The Credila student loan interest rate for a secured education loan is lower compared to unsecured loans. Credila's secured loan rate starts from 9.95% p.a., subject to the product type and the student's profile.

• Unsecured loans: In an unsecured loan, no collateral is pledged as security for the loan sanction. Hence, loan eligibility depends heavily on academic merit, the university of choice, and the co-applicant's income and credit score. 

Unlike secured loans, here the lenders' risk is high for a loan sanction. Therefore, the interest rate charged is comparatively high, starting from the 10.25% to 11.25% p.a. band. The maximum loan can be up to ₹2 crore, depending on the cost of education, income of the co-applicant, and applicable eligibility criteria. 

Therefore, it is suggested to keep the mentioned interest rate as a reference point while checking the final rate quoted in the student's sanction letter and loan agreement. Students should compare secured and unsecured education loans to understand how the loan structure can affect the interest rate applicable to them.

The key differences between secured and unsecured loan structures and their impact on education loan interest rates in HDFC Credila are explained below:

*Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the lender’s discretion.

Students should not estimate their interest rate based solely on the loan structure. The Credila student loan interest rate can also vary based on other factors, which can affect the monthly EMI payable after loan sanction.

*Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the lender’s discretion.

Credila also gives loans for working professionals who want to do short-term/executive courses. The interest rate for this falls under the CBLR and starts at 9.5% p.a.

Hence, lenders consider these factors while determining the interest rate applicable for each borrower. Students should know how these factors affect the rate so they can verify the final interest rate mentioned in their loan sanction letter. This gives a clear idea of their repayment cost.

The moratorium period in an education loan is a repayment holiday (grace period of course duration + 6-12 months) during which you do not have to pay your EMI. But this does not necessarily mean that interest is not charged. The education loan interest rate in Credila starts to accrue from the date of first disbursement. How interest is handled during this period can directly impact your interest rate and subsequently the overall cost of the loan. 

Before accepting the loan, check: 

• When the interest rate starts accruing.

• When EMI repayment begins.

• Whether partial payments are permitted.

• How interest accumulated during the study period is treated.

• How the outstanding balance changes after the moratorium.

Hence, during the moratorium, you may think the loan is on a break, but your interest rate is not. It can accumulate in the background, which is why understanding the above points can help you stay informed, financially prepared, and better positioned for a smooth repayment journey afterwards.

If you are dreaming of higher education abroad, then the education loan amount and its interest rate are important factors when planning to cover tuition fees and other eligible study-related expenses. 

Understanding the Credila education loan interest rate can help students estimate their overall borrowing costs. Credila's interest rate policy confirms that the company offers personalised education loans to study in countries such as the USA, Canada, the UK, Australia, New Zealand, and Ireland.

There are a few factors that determine the loan rate, including:

• Tuition fees

• Accommodation costs

• Living costs

• Loan amount

• Repayment tenure

• Expected EMI

• Total interest payable 

These factors give a practical picture of the actual cost of financing students' overseas education.

Students can get personalised assistance from WeMakeScholars to explore Credila education loan options based on their profile and requirements, with support throughout the education loan process.

*The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the lender’s discretion.

For students, understanding the HDFC Credila interest rate for education loans, comparing loan options, and evaluating the factors that will affect the rate can be complex. Hence, students can connect with WeMakeScholars for personalised guidance from financial experts to understand their loan options, compare suitable options, and get assistance throughout the education loan process.

From this article, one of the most important points worth remembering is: Credila is one of India's leading NBFCs for education loans, providing a competitive interest rate. It is adjusted based on your specific loan profile, your collateral, your co-applicant's financials, your course, and where you're headed to study.

This is exactly why the understanding of the rate deserves more than just a glance. This understanding shapes the two crucial calls you make as a borrower. One is how much loan to take; the other is how long the repayment tenure will be. Therefore, if you have a clear picture of the education loan interest rate Credila offers, you will have one less financial unknown in your study-abroad journey. Know your interest rate and focus on your degree, not debt!