Education Loan

HDFC Credila vs. Auxilo: Which is Better for Education Loans?

HDFC Credila vs. Auxilo: Which is Better for Education Loans?

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Read GyanDhan’s comparative guide on HDFC Credila vs Auxilo abroad education loan to choose the right option for you. Compare the interest rates, loan amount, repayment terms & more.

GyanDhan
Mansi Bisht
Updated on:  23 Oct 2023  | Reviewed By: 
Aman 
| 2.03K | 10  min read
hdfc credila vs auxilo

Education loans play a crucial role in assisting students who lack sufficient funds to pursue their studies abroad. In India, besides public and private banks, Non-Banking Financial Companies (NBFCs) have emerged as prominent lenders of education loans for international studies. The current economic conditions indicate a robust growth of 35% - 40% for NBFCs, reaching around INR 35,000 Cr in the financial year 2023-24, according to CRISIL (Credit Rating Information Services of India Limited).

Two notable NBFCs that contribute to this growth are HDFC Credila and Auxilo. They offer tailored education loan products with flexible terms and conditions to cater to the specific needs of aspiring students. This blog aims to shed light on the details of education loan products provided by HDFC Credila and Auxilo, helping students make informed decisions and choose the right option according to their unique requirements.

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Comparative overview of HDFC Credila vs. Auxilo Education Loans

Education loans by HDFC Credila and Auxilo share many features common to NBFCs. They cover 100% of your study-abroad expenses, offer unsecured loans of high amounts, and are flexible with the documentation process.

The table below compares the features of education loans by HDFC Credila and Auxilo for various countries abroad: 

Features  HDFC Credila  Auxilo

Maximum loan amount

INR 20 - 75 Lakhs 

INR 20 - 75 Lakhs

Interest rate*

11.5% - 12.5% 

12% - 13.25%

Moratorium period

Course period + 1 year

Course period + 1 year

Repayment during the moratorium period

Simple Interest (SI) or Partial Simple Interest (PSI)

Simple Interest (SI) or Partial Simple Interest (PSI)

Processing fee

0.5% - 1.5% of the loan amount + GST

0.5% - 1.5% of the loan amount + GST

Loan tenure

12 - 15 years

12 - 15 years

Margin money 

Nil

Nil

Minimum co-applicant income

INR 20,000 - 50,000

INR 20,000 - 40,000

Credit life insurance premium 

1.25% - 1.5% of the loan amount

1.25% - 1.5% of the loan amount

Loan Approval Based on GRE / GMAT? 

Yes

Yes

Give Pre Admission Loans 

Yes

Yes

 

*Interest rate as on July 2023

However, having many features common does not mean that HDFC Credila and Auxilo are equally relevant for your case. 

HDFC Credila

HDFC Credila has been a dedicated NBFC for education loans since 2006 and now offers education loans to study at 1,000+ institutions across 35+ countries. The following are some reasons why HDFC Credila can be your lender: 

  • list items Education loans are also provided against properties mortgaged with HDFC Bank
  • list items There is an option of a semi-collateral education loan where you pledge collateral to get half the loan amount, and the other half you get based on your co-applicants income 
  • list items HDFC Credila offers education loans without a co-applicant for applicants with 310+ GRE scores and work experience to study in select countries such as the US
  • list items HDFC Credila gives tax benefits under section 80 E that usually no other NBFC gives

Auxilo

A comparatively recent NBFC that was founded in 2017, Auxilo gives education loans to study at 900+ universities across 25+ countries. Auxilo education loans are notable for the following features: 

  • list items The interest rates can be lowered if the student has secured high GRE scores and the co-applicant has a high income
  • list items The maximum loan amount can be increased if the student has work experience and the co-applicant has a high income
  • list items Auxilo is concentrated only in select cities in India
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Interest rates for HDFC Credila and Auxilo education loans

The interest rates are crucial in determining the total cost of borrowing. There are two types of interest rates in education loans - fixed interest and floating interest. Typically, HDFC Credila and Auxilo charge floating interest rates for education loans. 

The interest rate for HDFC Credila education loans varies between 11.25% - 13%, and Auxilo education loan interest rates vary between 12% - 13.25%.

See the table below for the education loan interest rate for different countries: 

Country HDFC Credila Auxilo

Australia

12% - 12.5%

12.5% - 13.25%

Canada

12% - 12.5%

12% - 13%

Germany

12% - 12.5%

12.5% - 13.25%

Ireland

12% - 12.5%

12.5% - 13.25%

New Zealand

12% - 12.5%

12.5% - 13.25%

UK

12% - 12.5%

12.5% - 13.25%

US

11.5% - 12.5% 

12% - 12.75%

 

*Interest rate as of July 2023

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Country specific differences between HDFC Credila and Auxilo education loan

Your country of study abroad is crucial in determining the maximum possible loan amount. HDFC Credila and Auxilo have a separate list of eligible universities for each country. You must secure admission to any of those eligible universities to get an education loan from HDFC Credila or Auxilo. 

However, compared to banks, the list is flexible for NBFCs like HDFC Credila and Auxilo. 

The following table presents the maximum loan amount and minimum co-applicant income for unsecured education loans by HDFC Credila and Auxilo for select countries. 

Country HDFC Credila Auxilo

Australia

Up to INR 20 - 30 Lakhs

Co-applicant income: INR 35,000 - 50,000

Up to INR 15 - 20 Lakhs

Co-applicant income: INR 35,000 - 40,000

Canada

Up to INR 20 - 40 Lakhs

Co-applicant income: INR 30,000 - 50,000

Up to INR 25 - 30 Lakhs

Co-applicant income: INR 30,000 - 40,000

Germany

Up to INR 20 - 30 Lakhs

Co-applicant income: INR 35,000 - 50,000

Up to INR 20 Lakhs

Co-applicant income: INR 35,000 - 40,000

Ireland

Up to INR 20 - 30 Lakhs

Co-applicant income: INR 35,000 - 50,000

Up to INR 20 Lakhs

Co-applicant income: INR 35,000 - 40,000

New Zealand

Up to INR 20 - 30 Lakhs

Co-applicant income: INR 35,000 - 50,000

Up to INR 15 - 20 Lakhs

Co-applicant income: INR 35,000 - 40,000

United Kingdom

Up to INR 20 - 30 Lakhs

Co-applicant income: INR 35,000 - 50,000

Up to INR 20 - 25 Lakhs

Co-applicant income: INR 35,000 - 40,000

United States

Up to INR 40 - 75 Lakhs

Co-applicant income: INR 20,000 - 35,000

Up to INR 30 - 65 Lakhs

Co-applicant income: INR 20,000 - 35,000

 

Note: Auxilo offers education loans to select universities in UK and Ireland, provided the student has work experience and good GRE scores.

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Repayment tenure for HDFC Credila and Auxilo education loans

HDFC Credila and Auxilo offer same repayment tenure for education loans, which is 12 - 15 years. The repayment can be of Partial Simple Interest (PSI) or Simple Interest (SI), depending on the country and course of study. 

Generally, STEM courses are given the option of PSI, and SI is applicable for non-STEM courses, but it depends on your profile’s strength and various other factors. The interest repayment has to be started immediately after the loan is disbursed. 

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HDFC Credila or Auxilo which is a better deal for you? 

Here comes the crucial question - how to determine the best education loan between those offered by HDFC Credila and Auxilo? The answer is highly case-specific and depends on your eligibility and preferences. For help, the following inferences can be considered while deciding on your lender: 

  • list items HDFC Credila offers tax benefits under section 80 E, which Auxilo does not offer
  • list items Compared to Auxilo, HDFC Credila has more acceptance rate for education loan applications
  • list items Education loans by HDFC Credila are available to more states in India than those by Auxilo
  • list items Auxilo can offer better interest rates than their normal lending rate if the applicant has an extraordinary profile like having high GRE scores, work experience, admission to a top university, and high co-applicant income
  • list items HDFC Credila offers a lower interest rate than Auxilo

 

As mentioned, the ultimate decision to select a lender depends on your unique situation at the time of applying for a loan. Explore the loan products by HDFC Credila and Auxilo in detail. Once you have gone through the terms and conditions, compare them against your concerns to make a better choice. 

Here’s the best way how you select the better education loan option among HDFC Credila and Auxilo - get in touch with GyanDhan. You can save much time and effort in comparing the loan products since we filter the best options for you. To begin, check your education loan eligibility now!

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Frequently asked questions

How much loan amount is disbursed by HDFC Credila and Auxilo?

The maximum amount disbursed depends on your course fee and living expenses. There is no fixed cap on the amount to be disbursed at the time of disbursement. 

HDFC Credila or Auxilo - which lender is better if I don’t have a co-applicant? 

Typically a co-applicant is mandatory for education loans. When you don’t have a co-applicant, however, HDFC Credila can give you an education loan only if your GRE scores are high and you have relevant work experience. 

Is it safe to take an education loan from Auxilo?

Yes. Auxilo is a prominent NBFC in India for education loans to study in India or abroad. Auxilo education loans have been helpful to 6,200+ students so far. 

Which lender is better if I don’t have a co-applicant earning the minimum prescribed salary? 

A co-applicant with the minimum prescribed income is mandatory for education loans by HDFC Credila and Auxilo. 

What is the loan processing fee for HDFC Credila and Auxilo? 

Education loans by HDFC Credila have a processing fee of 1% - 1.25%, whereas Auxilo charges 0.5% - 1.5% of the loan amount to process education loans. 

What is the loan processing time for HDFC Credila and Auxilo?

HDFC Credila and Auxilo require up to 7 days to process the education loan application.

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