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

    Updated on: 05 Sep 2023

    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.

    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. 

    Get the Funds you need to Study Abroad Check Your Loan Eligibility Now!

    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: 

    • Education loans are also provided against properties mortgaged with HDFC Bank
    • 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 
    • 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
    • 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: 

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

    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.

    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. 

    Get the Funds you need to Study Abroad Check Your Loan Eligibility Now!

    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: 

    • HDFC Credila offers tax benefits under section 80 E, which Auxilo does not offer
    • Compared to Auxilo, HDFC Credila has more acceptance rate for education loan applications
    • Education loans by HDFC Credila are available to more states in India than those by Auxilo
    • 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
    • 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.

    First published date: 28 Jul 2023


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About author

Mansi Bisht
Meet Mansi, an expert in the field of study abroad with half a decade of experience in content management and finance. Her background in Bachelor of Business Administration (BBA) has equipped her with skills to scale the business to greater heights.

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