Higher education, especially abroad, often comes with a high price tag. While savings and scholarships help, many students rely on education loans to fund tuition, living expenses, and other academic costs. HDFC Credila, part of the HDFC Group, is a leading Non-Banking Financial Company (NBFC) specializing in education loans.
In this blog, we’ll cover HDFC Credila education loan interest rates, how they are calculated, real-life examples, and EMI calculations to help you make an informed decision.
What is HDFC Credila?
HDFC Credila is India’s first dedicated education loan company. Unlike general bank loans, Credila focuses entirely on educational financing—both for domestic and international studies. This allows them to offer flexible terms and quicker approvals.
HDFC Credila Education Loan Interest Rate
According to CreditMantri (as of August 2025), the HDFC Credila interest rate is around 10.25% (floating). The exact rate depends on:
- Applicant’s credit score and repayment history
- Collateral provided (secured vs. unsecured loan)
- University and course category
- Co-applicant’s financial profile
Example:
If a student has a strong credit score (750+), collateral security, and admission to a top-ranked global university, they may be offered a slightly lower spread over the base rate.
Difference Between HDFC Bank and HDFC Credila Rates
- HDFC Bank Education Loans (general) — 8.64% to 9.55% (floating, CBLR + spread)
- HDFC Credila Loans — ~10.25% (floating), tailored for education financing
While HDFC Bank offers lower starting rates, HDFC Credila often provides more flexible repayment options, faster processing, and loan coverage for a wider range of courses and countries.
How Floating Interest Rate Works
A floating rate means your loan interest can change during the repayment period, depending on changes in the lender’s base rate or market rates.
Formula:
Interest Rate = Base Rate (CBLR) + Spread
- If base rate increases → your EMI increases
- If base rate decreases → your EMI reduces
EMI Calculation Example for HDFC Credila Loan
Let’s assume:
- Loan Amount = ₹20,00,000
- Interest Rate = 10.25% p.a. (floating)
- Tenure = 10 years (120 months)
EMI Formula
Where:
- P = Loan Amount
- r = Monthly Interest Rate = Annual Rate / 12
- n = Number of Months
Step-by-Step:
- r=10.25%/12=0.8541%r = 10.25\% / 12 = 0.8541\%r=10.25%/12=0.8541% per month
- n=120n = 120n=120 months
- EMI = ₹26,836 (approx.)
Total Payable Amount: ₹26,836 × 120 = ₹32,20,320
Total Interest Paid: ₹32,20,320 – ₹20,00,000 = ₹12,20,320
Example with Different Loan Amounts
| Loan Amount | Interest Rate | Tenure | Monthly EMI | Total Interest Paid |
| ₹10,00,000 | 10.25% | 10 yrs | ₹13,418 | ₹6,10,160 |
| ₹15,00,000 | 10.25% | 10 yrs | ₹20,127 | ₹9,15,240 |
| ₹20,00,000 | 10.25% | 10 yrs | ₹26,836 | ₹12,20,320 |
Benefits of Choosing HDFC Credila
- 100% coverage for tuition and living costs
- Flexible repayment options (up to 12 years)
- Quick approval before visa process
- No margin money for select universities
- Loan sanctioned before admission in some cases
Tips to Reduce Interest Burden
- Start Repayment Early – Pay interest during the study period to avoid compounding.
- Choose a Shorter Tenure – Shorter repayment periods mean lower total interest.
- Maintain a Good Credit Score – Improves chances of getting a lower spread.
- Offer Collateral – Secured loans often come with better rates.
- Negotiate with Lender – Sometimes possible if you have an offer from a top university.
Final Thoughts
While HDFC Credila’s education loan interest rate is around 10.25% floating, the actual rate can vary depending on your financial profile and chosen university. Comparing it with HDFC Bank’s lower-starting rates is wise, but Credila’s flexible coverage and quicker approvals make it attractive for students—especially those going abroad.
Before applying, calculate your EMI, plan for repayment, and keep an eye on floating rate changes. A well-planned education loan can turn your academic dream into reality without financial stress.