Credila is a top choice for students seeking education loans to study abroad. One of the key factors students consider is the Credila education loan interest rate, which varies based on the applicant’s profile, course, and institution. Credila offers education loans starting from INR 1 lakh, with no upper limit, depending on the student’s financial requirements and repayment capacity.
Credila education loan interest rate depends on a number of factors such as the credit score of the applicant, net monthly income, loan amount, type of loan, type of interest rate, etc. Check all the details on Credila education loan interest rates in this blog.
Table of contents
What is the Credila Education Loan Interest Rate?
Credila education loan interest rates are currently @ 9.75%* p.a. onwards for secured loans, and for unsecured loans, Credila provides interest rates starting from 11.25%* p.a. It may change periodically based on economic conditions, RBI guidelines on education loans, and Credila’s internal policies.
Since the loan comes with a floating interest rate, it is subject to revision every quarter. Borrowers should stay updated on potential changes in the Credila education loan interest rate to make informed financial decisions. Check the major factors below:
- The rate of interest for the Credila study abroad loan will be the floating rate of interest.
- The spread part of the interest rate will be determined based on the risk profile of the applicant
- The risk profile includes various factors such as the student’s academic background, job prospects of the selected course from a selected college, and the country of study.
- The interest on the education loan repayment will start immediately after the first disbursement of the first instalment of the loan
There are fixed rates with the Credila education loan. Please have a look :
- For loans with a tenure of 5 years or more: 1.5% above the floating rate*.
- For loans with a tenure up to 5 years: 1% above the floating rate*.
Also Read: Getting a loan from Credila? Check all about the Credila Education Loan Disbursement Process
Credila Interest Rate Calculation
The Credila education loan interest rate is determined based on whether the loan is secured or unsecured and whether it has a floating or fixed rate structure. However, major factors to be considered while determining the spread percentage are the financial status of the co-applicant, loan repayment capability, credit history and repayment behaviours, collateral offered, etc. Check the Interest Rate calculation example:
Assuming a secured loan with a floating interest rate:
- Base Floating Rate for Secured Loan = 9.95%*
- Effective Interest Rate = 9.95%* (no additional spread specified in this example).
For a fixed-rate secured loan with a tenure of 5 years or more:
- Base Floating Rate = 9.95%*
- Fixed Rate Adjustment = 1.5%*
- Effective Interest Rate = (9.95 + 1.5)% = 11.45%*
*Terms and conditions apply. The interest rates are subject to change at the sole discretion of Credila Financial Services Limited, without prior notice, based on the Company’s prescribed credit and underwriting norms/guidelines prevailing at the time of processing and disbursing the education loan.
Also Read: Check out this blog and know all about Credila Education Loan processing time
Factors Affecting Credila Education Loan Interest Rate
The Credila education loan interest rate is influenced by several factors that determine an applicant’s creditworthiness and repayment potential. Understanding these factors can help borrowers secure loans at more favorable rates. Let’s discuss some of the major factors:
- Credit Score and Financial History
Lenders assess the applicant’s and co-applicant’s credit scores to determine loan eligibility and interest rates. A higher credit score reflects financial discipline and a lower risk of default, leading to a lower interest rate. A poor credit history, on the other hand, may result in higher rates or even loan rejection. - Type of Institution and Course
Credila evaluates the credibility of the educational institution and the job prospects associated with a course. Loans for prestigious universities and programs with high employability rates generally come with lower interest rates. Courses that have uncertain job opportunities may lead to higher rates due to increased repayment risks. - Loan Amount and Repayment Tenure
The loan amount and the chosen repayment period significantly impact the interest rate. Larger loans often attract higher rates due to the increased risk for the lender. Similarly, a longer repayment tenure might lead to a slightly higher interest rate, whereas shorter tenures may offer more favorable terms. - Collateral and Loan Security
Providing collateral (such as property, fixed deposits, or other assets) can help borrowers secure lower interest rates, as it reduces the lender’s risk. Secured education loans generally come with better terms compared to unsecured loans, which carry higher interest rates due to the lack of security. - Co-applicant’s Financial Stability
Since education loans often require a co-applicant (such as a parent or guardian), their financial stability plays a crucial role in determining the loan’s interest rate. A co-applicant with a stable income and good credit profile can improve the chances of securing a lower rate. - Applicant’s Academic Performance and Future Employability
Applicants with a strong academic track record and enrollment in high-demand courses have a better chance of securing lower interest rates. Lenders consider future earning potential when determining loan terms, as students from reputed institutions are more likely to secure well-paying jobs, ensuring timely loan repayment.
Eligibility Criteria for Credila Education Loan
To qualify for a Credila Education Loan, students must fulfill certain eligibility requirements. Understanding these criteria ensures a smooth application process and better approval chances. Here are the following criteria:
- Must be an Indian citizen.
- Confirmed admission into a recognized university in India or abroad.
- Eligible for undergraduate, postgraduate, or doctoral programs.
- Require a co-applicant (parent/guardian) with a stable income.
- Maintain a good academic track record.
Key Benefits of Credila Education Loan
Choosing a Credila education loan offers several advantages, making it an attractive choice for students. Here are some benefits:
- 100% Education Cost Coverage: Includes tuition fees, accommodation, travel, and study materials.
- Flexible Repayment Tenure: Loan tenure of up to 15 years with easy EMI options.
- Pre-admission Loan Sanction: Students can secure a loan even before receiving university admission confirmation.
- Tax Benefits: Interest payments qualify for tax deductions under Section 80E of the Income Tax Act.
- Competitive Interest Rates: Affordable rates customized based on student profiles.
- No Upper Loan Limit: Depending on eligibility and collateral, students can secure high-value loans.
Credila Education Loan vs. Other Lenders
When choosing an education loan, comparing different lenders is crucial. The Credila Education Loan Interest Rate offers competitive advantages over other lenders, making it an excellent choice for students. Here is the comparison of Credila vs. Avanse Financial Services and Axis Bank Education Loan.
Credila vs. Avanse Financial Services
| Feature | Credila | Avanse |
|---|---|---|
| Interest Rate | Secured Loans @ 9.95%* p.a. onwards Unsecured Loans @ 11.25%* p.a. onwards | 11% – 13% |
| Loan Coverage | 100% of expenses | 100% of expenses |
| Repayment Tenure | Up to 15 years | Customized options |
Credila vs. Axis Bank Education Loan
| Feature | Credila | Axis Bank |
| Interest Rate | Secured Loans @ 9.95%* p.a. onwards Unsecured Loans @ 11.25%* p.a. onwards | 9.8% – 11.5% |
| Collateral Requirement | Optional | Required for high amounts |
| Loan Approval Speed | Faster | Slower due to documentation |
How to Apply for Credila Education Loan
Applying for a Credila Education Loan is simple and hassle-free. Following the correct steps ensures quick loan approval. Students should gather all required documents in advance to avoid delays in loan processing.
- Online Application: Fill out the application form on the Credila website.
- Document Submission: Provide necessary documents, including identity proof, academic records, and co-applicant details.
- Loan Sanctioning: After verification, the loan amount, interest rate, and tenure are finalized.
- Disbursement: Funds are disbursed as per the university’s fee structure.
Tips to Secure the Best Credila Education Loan Interest Rate
To secure the lowest possible Credila Education Loan Interest Rate, students can follow these best practices. A strategic approach to a loan application can result in better interest rates and flexible repayment options. Here are some tips:
- Maintain a Strong Academic Profile: High scores can improve loan terms.
- Choose Reputed Universities: Admission to top-tier institutions attracts better loan conditions.
- Apply for a Secured Loan: Providing collateral reduces interest rates.
- Ensure a Financially Strong Co-applicant: A high-income co-applicant with a good credit score improves loan approval chances.
- Compare Loan Offers: Analyze various lenders before making a final decision.
The Credila Education Loan is a reliable financial solution for students aspiring to pursue higher education in India or abroad. With competitive interest rates, flexible repayment options, and customized financial solutions, Credila makes education funding hassle-free. Understanding the factors affecting the Credila Education Loan Interest Rate can help students and their families make informed financial decisions.
FAQs on Credila education loan interest rate
Currently, Credila education loan interest rates start at 9.95%* p.a. for secured loans and 11.25%* p.a. for unsecured loans. These rates may vary depending on factors such as loan amount, tenure, and the applicant’s profile.
The Credila education loan interest rate is determined based on multiple factors, including the applicant’s credit profile, loan amount, repayment tenure, academic background, and co-borrower’s financial stability.
Yes, Credila offers both fixed and floating interest rates for education loans. Borrowers can choose based on their financial strategy and preference, subject to Credila’s internal policies.
The Credila education loan interest rate depends on eligibility criteria such as academic performance, choice of course and institution, creditworthiness, and co-borrower’s income and financial stability.
Generally, the Credila education loan interest rate remains fixed as per the agreed terms. However, in cases of financial distress, borrowers can contact Credila to explore restructuring options.
This was all about Credila education loan interest rates. Always check and analyse all the factors before initiating the loan application. Also, try to choose a fixed interest rate if available.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
| Related Blogs |
| SBI Education Loan Schemes |
| Documents Required for SBI Education Loan |
| IOB Education Loan Disbursement Process |
Follow Us on Social Media
