HDFC Credila vs. Union Bank of India Education Loan
Education Loan

HDFC Credila vs. Union Bank of India: Which Education Loan is Right for You?

HDFC Credila vs. Union Bank of India: Which Education Loan is Right for You?

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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.

GyanDhan
Ananya Ghai
Updated on:  23 Sep 2024  | Reviewed By:  Aman  | 647 | 6  min read

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.

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Bank vs. NBFC: Understanding the Basics

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

 

Check loan eligibility for study abroad

 

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Loan Amount: How Much Can You Borrow?

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

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Interest Rates: What Will You Pay?

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

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Processing Fees: What’s the Cost?

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 

 

EMI calculator

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Making the Right Choice: UBI or HDFC Credila?

Choosing between UBI and HDFC Credila ultimately depends on your specific needs and priorities. Here's a quick recap to help you decide:

  • list items Union Bank of India (UBI): Ideal for those looking for lower interest rates, higher loan amounts, and the reliability of a public sector bank.
  • list items HDFC Credila: Best for students who need customized loan solutions, quicker processing times, and are looking to take advantage of tax benefits under Section 80E.

 


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!

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Frequently Asked Questions

What is the education loan interest rate at UBI?
 

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%. 

What is the processing fee at Union Bank of India?
 

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. 

What is the education loan interest rate at HDFC Credila?
 

The current interest rate at HDFC Credila ranges from 10.5% to 11.5%

Check Your Education Loan Eligibility


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