HDFC Credila is a familiar name in the education loan market. However, the HDFC Credila interest rate has been at the centre of a lot of controversies in recent times. The fluctuation in the HDFC Credila interest rate has resulted in a lot of students repaying more than what was expected during the repayment of their Credila education loan without collateral.

It is extremely important to weigh in the pros and cons of any abroad education loan scheme before deciding to borrow an education loan to study abroad, no matter how good or bad the reputation of your lender could be. Credila is synonymous with non-collateral education loans for abroad studies. The HDFC Credila interest rate has been the subject of much debate amongst the students today. However, not many loan applicants are familiar with how the HDFC Credila interest rate is calculated for abroad education loans. HDFC Credila interest rate is one of the factors that has been contributing to some of the problems being faced by a majority of candidates who had funded their higher education with the help of an HDFC Credila non collateral loan.

The flexibility of an education loan scheme is highly dependent on the interest rates offered by the particular lender. If you are considering an HDFC credila student loan interest rate to fund your higher studies, then you must understand the bank norms to get a clear picture as constant fluctuation in the HDFC Credila interest rate should be a cause of major concern for you.  You will come to realise that this fact is true when you go through some of the HDFC Credila education loan interest reviews posted on Quora by their old students. Let’s take a look at some of the major woes faced by students who had funded their higher education with an HDFC Credila non-collateral loan and some of the hidden flaws in the HDFC education loan interest process.

Read More: HDFC Education loan: Interest rate and its Pros and Cons

HDFC Credila Interest Rate: The ‘Simple Interest’ Story

Many of the education loan repayment terms of a Credila education loan without collateral is similar to those of most NBFCs. Like all major NBFCs, HDFC Credila also claims to charge simple interest during your moratorium period. When you carefully go through their FAQs on the education loan repayment rules, you will find certain statements that will point out the fact that this is not the case.

One of the major flaws of the HDFC Credila education loan repayment terms and conditions is that at the time of applying, all applicants are promised that the Credila education loan interest rate charged during the moratorium period is calculated on the basis of the simple interest concept.

You may come to observe that their website does not give a clear cut explanation on their policies regarding the interest payment during the moratorium period. It is written on the website that if candidates wish to avoid paying ‘interest upon interest’ during their moratorium period, then they should pay their monthly interest amount without any delay.

This statement indirectly states that should candidates default on their education loan interest payment at any point during their moratorium period, the balance amount will be accumulated and compounded at the end of that particular year. Read the above lines again. When you come to think about it, it does sound like compound interest, right?

It is extremely important to go through the loan repayment terms and the Credila education loan interest rate conditions before deciding to borrow an HDFC Credila non-collateral education loan to support your higher studies abroad. The HDFC Credila Education loan interest rate 2022 or the HDFC Credila CBLR is 11.55% per annum (This is subject to changes from time to time).

If you have faced a similar situation and wish to transfer your education loan from Credila to a reliable lender, do get in touch with our team for assistance regarding the same.

HDFC Credila Interest Rate: The Partial Interest Payment Issue

It is common knowledge that most NBFCs, including HDFC Credila, allow students to make their interest payments partially during their moratorium period. Have you ever wondered whether this is actually beneficial to you as a loan applicant?

The option of paying partial interest during the moratorium period may sound like a boon to most students who are still pursuing their higher education and are in the midst of their moratorium period. But you need to understand that the remaining interest amount will be again compounded and added as accumulated interest along with your principal amount at the end of that particular year.

It is similar to your credit card bill payment. You will be able to use your credit card after having paid the minimum dues for the month. However, you fail to understand that interest is charged on the unpaid amount at the end of each month, and finally, your debts increase manifold.

The partial interest payment of an HDFC Credila non-collateral loan is somewhat similar to this system. This is the second important point to note.

WeMakeScholars has helped a lot of students overcome the various hurdles in their abroad education loan process to study in various countries across the world. If you are dissatisfied with the variation in the HDFC Credila interest rate and are one of the students who is overpaying during the loan tenure, you still stand a chance to come out of this situation. Get in touch with our team today and avail our assistance for an education loan transfer to another lender.

Read More: Credila Education loan – Know these before you pay the Processing fee

Credila Interest Rate: Monthly Interest Payment

Did you know that HDFC Credila charges monthly interest on their non-collateral education loans? And this information is provided on their website, again within the FAQs section. This tells you that they may not follow a uniform method during your loan repayment tenure.

All in all, it can be said that although the process of applying for a Credila education loan without collateral is a short and convenient process, you may end up facing an equally terrible education loan repayment process. It is always wiser to conduct thorough research about your intended lender before taking the plunge. 

What Are Some of The Other Issues Faced by Students Who’d Borrowed a Credila Education Loan Without Collateral? 

1. Rejection of Loan Applications without any prior intimation or explanation

Most of the HDFC Credila education loan reviews posted on Quora mention this as the number one reason why the firm is not recommended for non-collateral education loans. The reason why Credila still does this is not very clear. However, if you are considering borrowing a Credila education loan without collateral, you should know that this is a possible scenario.

If you have faced a similar hurdle during your HDFC Credila non collateral loan process and are looking for an alternative to fund your higher education, request a callback with our team. We have an excellent team of professionals who have made it possible for students to get abroad education loans even in the worst of the situations.

2. The sudden hike in HDFC Credila interest rates

The reason behind this is that many NBFCs, including Credila, faced a major financial setback in the previous year. As a result, the HDFC Credila interest rates were changed without intimating their students in advance. This was a major inconvenience to all their loan applicants.

Lending or borrowing non-collateral education loans is a risk for both parties, the lender as well as the borrower. You may not find many sources on the internet that will give you a clear-cut idea of what happens when you borrow education loans from different lenders. With this blog, we intend to relay the right kind of information so that students could avail the best of any abroad education loan scheme offered by any lenders in India.

If you are looking forward to funding your higher education abroad with the help of an education loan scheme that makes it easy for you, do not hesitate to get in touch with our financial team. The financial team at WeMakeScholars strives to ensure that our students get to have a smooth education loan procedure. Rest assured, you will definitely get to fund your higher studies with the help of some of the best sources in the education loan market. 

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others