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Read GyanDhan’s comparative guide on HDFC Credila vs UBI education loans. Learn the hidden differences and best lender for you.
Imagine securing a 40 Lakh education loan from a public bank without any collateral and with interest rates starting at just 9.75% from a public bank in India. Add to that the possibility of enjoying tax benefits under Section 80E with an education loan from a Non-Banking Financial Company (NBFC).
But which is the best lender? Which lender offers the best education loan deal? This confusion is a common scenario many students face when deciding between the Union Bank of India (UBI) and HDFC Credila. The choice between these two giants in the education loan market is confusing. To help you make an informed decision this blog offers a comparative analysis of the top four differences between HDFC Credila and UBI.
Union Bank of India (UBI), being a public bank, offers various banking services along with education loans, making it a more rounded financial solution. In contrast, HDFC Credila, a Non Banking Financing Company (NBFC) is focused solely on education loans, offering tailored solutions for students.
Feature | Union Bank of India (UBI) | HDFC Credila |
---|---|---|
Type |
Public Sector Bank |
Non-Banking Financial Company (NBFC) |
Services |
Comprehensive financial services including savings and fixed deposits |
Specializes in education loans only |
Regulation |
Regulated by RBI |
Regulated by RBI |
When it comes to loan amounts, UBI can offer higher amounts due to its government backing. For collateral-based loans, both UBI and HDFC Credila can finance up to ₹1.5 Crores. However, for unsecured loans, HDFC Credila offers a higher limit of ₹75 Lakhs compared to UBI’s ₹40 Lakhs.
Feature | Union Bank of India (UBI) | HDFC Credila |
---|---|---|
Maximum Loan Amount (With Collateral) |
Up to INR 1.5 Crores (or more, depending on collateral) |
Up to INR 1.5 Crores |
Maximum Loan Amount (Without Collateral) |
Up to INR 40 Lakhs (for selected universities) |
Up to INR 75 Lakhs |
Interest rates are often the deciding factor when choosing an education loan. UBI offers a lower starting interest rate of 9.25%, making it an attractive option for those looking to minimize their repayment burden. HDFC Credila, on the other hand, starts at 11.25% but offers flexibility in loan structuring based on your profile.
Feature | Union Bank of India (UBI) | HDFC Credila |
---|---|---|
Interest Rate (Unsecured Loan) |
Starting @ 9.75% |
Starting @ 11.5% |
Interest Rate (Secured Loan) |
For listed universities - 9.25% For non-listed universities - 10.5% |
Starting @ 10.50% |
Eligibility for Lower Rates |
Pre-approved courses for unsecured loans |
Based on profile and credit score |
Processing fees can add to the overall cost of your loan. UBI charges a processing fee between INR 10,000 to INR 20,000. On the other hand, HDFC Credila charges a percentage of the loan amount, which is generally non-refundable.
Feature | Union Bank of India (UBI) | HDFC Credila |
---|---|---|
Processing Fee |
INR 10,000 + GST |
1% to 1.25% of the loan amount |
Choosing between UBI and HDFC Credila ultimately depends on your specific needs and priorities. Here's a quick recap to help you decide:
If neither lender meets your specific requirements, it's worth exploring other options. There are several banks, NBFCs, and even international lenders offering education loans without collateral or co-applicants.
Navigating the education loan process can indeed be overwhelming, but with GyanDhan by your side, it doesn't have to be. Our experts will guide you through every step of the process, ensuring a smooth and hassle-free experience. And if you hit a roadblock, we'll work directly with the lender's higher management to resolve any issues.
Ready to take the next step? Check your loan eligibility now!
The interest rate for secured education loans to study abroad starts from 9.75% at UBI. Whereas, for unsecured education loans to study abroad starts from only 9.25%.
The processing fee at Union Bank of India for loans upto INR 40 Lakh is INR 10000 + GST. However, for loans amounting above INR 40 Lakh, the processing fee is INR 20000 + GST.
The current interest rate at HDFC Credila ranges from 10.5% to 11.5%
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