K77,
Thought you're halfway through your PPL according to the amount of posts and especially your own threads regarding heli flying/training/clothing/whatever. Now you're just starting this thread. Beyond me why.
the C in CDL stands for Career. I researched the pros and cons.
It's definitely cons regarding PPL funding as your 'question' stands.
How you're gonna fund the rest of training as I presume you wish to go on to CPL training and flying later on.
'Favourable interest rates' aren't exactly favourable if you look at it closely.
Govt agency pays for the interest during your training and there's month or so after the 'training' when you start paying back.
In other words, if your course isn't going to be lengthy, 'free' interest is going to last only short time. Also, the rates advertised by three UK banks providing CDL, RBS, Cooperative and another one (check Direct.gov.uk) seem favourable when you're going to do one year course and repay the amount within a year (or less) as it'll be about HALF of the time you're paying interest.
Last time I checked (couple months ago) it was in the region of 12-13% pa ie AER or EAR or whatever acronym it is for average interest rate over the total period, is 6-7%.
So if you're going to get PPL H funding from CDL, it'll be say 3-5 months on the paper and all gets approved (maybe), you're going to repay it until two years after getting the cash, AER/EAR/APR/?? would be around 10%.
Does that sound favourable rate? Well, unless you're claiming in the application it'll take 1 year to complete the course...
CDL is also subject to OK credit rating as the commercial banks don't have to provide the loan. It's no charity business as you see it now. They get higher interest paid than they might have from £8k loan to good credit history customer. I'm not sure if a person would get CDL when already indebted heavily.
I still see CDL as a good thing for someone needing to 'finish up' funding for CPL, FI or part of IR (H) cost.