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Read GyanDhan’s comparative guide on HDFC Credila vs Axis Bank abroad education loan to choose the right option for you. Compare the interest rates, loan amount, repayment terms & more.
In the last financial year, the Indian financial market witnessed INR 17,000 Cr worth of education loans disbursed. The situations are positive for students planning their study abroad with an education loan, and the crucial thing is selecting the lender who offers the best education loan.
Axis Bank and HDFC Credila are two prominent lenders in the Indian market for study abroad loans. Both lenders offer education loans under different categories, but which is better depends on your eligibility and personal preferences.
Noticeable common features for education loans by Axis Bank and HDFC Credila include options for secured vs. unsecured education loans and tax benefits under section 80 E. The table below gives you a comparative overview of the features of education loans by Axis Bank and HDFC Credila to study abroad:
Top features | Axis Bank | HDFC Credila |
---|---|---|
Maximum loan amount |
Up to INR 40 - 75 Lakhs |
INR 20 - 75 Lakhs (depending on the country) |
Interest rate* |
11% - 11.5% |
11.5% - 12% |
Moratorium period |
Course period + 1 year |
Course period + 1 year |
Repayment during the moratorium period |
Simple Interest (SI) |
Simple Interest (SI) or Partial Simple Interest (PSI) |
Processing fee |
0.75% of the loan amount + GST |
0.5% - 1.5% of the loan amount + GST |
Margin money |
0% - 5% of the loan amount |
Nil |
Minimum co-applicant income (negotiable for secured education loans) |
INR 35,000 |
INR 20,000 - 50,000 |
Loan tenure |
15 years excluding the moratorium period |
12 - 15 years including the moratorium period |
Loan Approval Basied on GRE / GMAT? |
Yes |
Yes |
Credit life insurance premium |
1.25% - 1.5% of the loan amount |
1.25% - 1.5% of the loan amount |
Give Pre Admission Loans |
Yes |
Yes |
*Interest rate as on July 2023
Check Your Education Loan Eligibility
The major differences between Axis Bank and HDFC Credila include the range of loan amounts, interest rates, repayment period, and eligible countries and institutions. To decide your lender, dive deep into the unique features, mandatory conditions, and details of abroad education loans by Axis Bank and HDFC Credila, which begins with familiarizing with the lenders.
Founded in 1993, Axis Bank is a prominent private sector bank with 5,625 branches across the states and Union Territories in India. Education loans from the Axis Bank start from INR 50,000 and fund the higher education of eligible applicants with or without collateral security at affordable interest rates.
*MCLR: The MCLR or Marginal Cost of Funds Based Lending Rate is the benchmark interest rate below which banks can’t lend. The RBI introduced it in 2016 to make the lending process more democratic and uniform for all lenders.
HDFC Credila was founded in 1977 for housing loans and, in 2006, became a dedicated NBFC for education loans, later becoming the oldest NBFC in India for education loans. Features of HDFC Credila include the following:
The maximum loan amount from Axis Bank is INR 75 Lakhs in secured education loans. For unsecured education loans, Axis Bank offers up to INR 50 Lakhs for Prime A-listed institutions and up to INR 40 Lakhs for Prime B-listed institutions.
HDFC Credila education loan amount varies between INR 20 - 75 Lakhs for different countries and courses as listed below:
Country | Maximum loan amount by HDFC Credila |
---|---|
Australia |
STEM courses: INR 20 - 30 Lakhs Non-STEM courses: INR 25 Lakhs |
Canada |
STEM courses: INR 30 - 40 Lakhs Non-STEM courses: INR 20 - 25 Lakhs |
Germany |
STEM courses: INR 20 - 30 Lakhs Non-STEM courses: INR 25 Lakhs |
Ireland |
STEM courses: INR 20 - 30 Lakhs Non-STEM courses: INR 25 Lakhs |
New Zealand |
STEM courses: INR 20 - 30 Lakhs Non-STEM courses: INR 25 Lakhs |
UK |
STEM courses: INR 20 - 30 Lakhs Non-STEM courses: INR 25 Lakhs |
US |
STEM courses: INR 75 Lakhs Non-STEM courses: INR 40 Lakhs |
Make sure your university is listed by Axis Bank or HDFC Credila for study abroad loans. If not, negotiate with the lender based on the academic and financial weightage your application has.
Education loan interest rates can be fixed or floating, according to the lender’s decision, based on the market conditions. Axis Bank offers an interest rate of 11% - 11.5% for unsecured education loans and 9.8% - 10.5% for secured loans, depending on the collateral value.
HDFC Credila education loan interest rates fall between 11.25% - 13%, varying with countries, as in the table below:
Country | HDFC Credila |
---|---|
Australia |
12% - 12.5% |
Canada |
12% - 12.5% |
Germany |
12% - 12.5% |
Ireland |
12% - 12.5% |
New Zealand |
12% - 12.5% |
UK |
12% - 12.5% |
US |
11.5% - 12.5% |
*Interest rate as of July 2023
For both lenders, the interest has to be paid during the moratorium period. Axis Bank offers Simple Interest (SI), and HDFC Credila offers Simple or Partial Simple Interest (PSI) on education loans.
While selecting, ensure the education loan offers enough time to repay the education loan. The repayment tenure for the Axis Bank education loan is 15 years, excluding the moratorium period, while the same for the HDFC Credila loan is 12 - 15 years, including the moratorium period. However, the repayment tenure is flexible and can be trimmed or extended after negotiations with the lender.
Get the Funds you need to Study Abroad
Education loans can be taken against collateral security or co-applicant income, depending on your eligibility and situation. Here are the details of secured and unsecured education loans by Axis Bank and HDFC Credila to help you decide which is more suitable.
Secured education loans by Axis Bank funds up to INR 75 Lakhs. The interest rate starts from 9.8% onwards for secured education loans.
Secured education loan by HDFC Credila funds 100% of the study-related expenses if the collateral value is sufficient. For secured education loans from Credila, the co-applicant can be any relative of the applicant, whereas Axis Bank mandates the co-applicant must be someone from the student’s close family.
Axis Bank unsecured education loans: As mentioned earlier, up to INR 40 - 50 Lakhs is available for Prime A & B institutions. Typically, the course of study must be STEM or MBA for unsecured loans to study abroad.
HDFC Credila unsecured education loans: HDFC Credila offers unsecured education loans of high amounts based on the co-applicants income. Compared to Axis Bank, the list of eligible universities is flexible for HDFC Credila.
Depending on the country and course (STEM or non-STEM), the minimum co-applicant income requirement varies between INR 20,000 - 50,000 without any obligations.
Axis Bank and HDFC Credila offer education loans based on GRE scores for studies abroad. High GRE scores can bring flexibility to the loan amount, interest rate, repayment tenure, etc., for education loans to study abroad from Axis Bank. How it will be in effect depends on the strength of the student’s profile and can vary from case to case.
Similarly, HDFC Credila offers education loans without a co-applicant if the GRE score is 320+ and the student gets admission to a top university under 100 of QS world university rankings. From Credila, the student with a GRE score of 320+ or GMAT score of 700+, admission to a top university under 100 of QS world university rankings, and high co-applicant income is eligible for a 0.5% interest concession.
Determining the better option among education loans from Axis Bank and HDFC Credila depends on various factors concerning your situation and eligibility. You may go through the loan terms mentioned above to make an informed choice.
The following are some observations regarding education loans by Axis Bank vs. HDFC Credila that may help you with a better selection:
Generally, banks can be prioritized over NBFCs for education loans due to lower interest rates and high acceptance rates for visa applications. Note that all countries do not accept education loans from NBFCs for visa purposes. In that context, an education loan from Axis Bank has more weightage than one from HDFC Credila.
However, as it is case specific to determine the best education lender from Axis Bank and HDFC Credila, you may get in touch with us to find the best education loan for you. We will evaluate your profile and suggest the best option. Check your education loan eligibility for more details.
Read also:
It depends on your situation to finalize Axis Bank or HDFC Credila for secured education loans.
However, before choosing a lender, go through the terms and conditions thoroughly to make an informed decision considering your needs.
For unsecured education loans, Axis Bank listed eligible universities for loan amounts of more than INR 7.5 Lakhs. If your university is on the list, Axis Bank can be the preference.
If your university is not listed by Axis Bank, HDFC Credila can be the ideal choice since HDFC Credila is more flexible with eligible universities and courses than Axis Bank.
You can apply either online or offline for an education loan from Axis Bank.
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