Education Loan

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

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

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

GyanDhan
Rohit Gidwani
Updated on:  25 Oct 2023  | Reviewed By: 
Aman 
| 5.11K | 10  min read

Non-Banking Financial Companies (NBFCs) have made a significant impact on the Indian market for study abroad education loans since their establishment. According to CRISIL (Credit Rating Information Services of India Limited), education loans by NBFCs have an expected growth of 35% - 40% to around INR 35,000 Cr in the financial year 2023-24.

Two prominent players in the NBFC space catering to the higher education aspirations of Indians are HDFC Credila and Avanse. Unlike many traditional banks that require collateral for loans exceeding INR 7.5 Lakhs, these NBFCs offer flexible options. Students can avail education loans for higher amounts, either with or without the need for collateral security, making the dream of studying abroad more attainable for many.

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Comparative overview of HDFC Credila vs Avanse abroad education loans

Education loans offered by HDFC Credila and Avanse share many common features. They cover 100% of your expenses, unlike education loans from banks. You can get secured or unsecured education loans of high amounts, but collateral security is mandatory for bachelor’s courses.

Check Your Education Loan Eligibility

See the table below for a comparison of HDFC Credila and Avanse education loan features: 

 

Features HDFC Credila Avanse

Maximum loan amount

INR 20 - 75 Lakhs

INR 20 - 75 Lakhs 

Interest rate*

11.25% - 13%

12.25% - 14%

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

1% - 2% of the loan amount + GST

Loan tenure

12 - 15 years

12 - 15 years

Margin money 

Nil

Nil

Minimum co-applicant income (negotiable for secured education loans)

INR 30,000 - 60,000

INR 30,000 - 60,000

Loan Approval Based on GRE / GMAT? 

Yes

Yes

Give Pre Admission Loans 

Yes

Yes

Credit life insurance premium 

1.25% - 1.5% of the loan amount

1.25% - 1.5% of the loan amount

 

*Interest rate as on July 2023

As the table shows, the features of education loans by HDFC Credila and Avanse are almost the same. Let’s see the unique features of both lenders to decide which is better for you. 

HDFC Credila

Founded in 1977 for housing loans, HDFC Credila became a dedicated NBFC for education loans in 2006, making it the oldest NBFC in India dedicated to education loans. The following points explain what makes HDFC Credila unique: 

  • list items HDFC Credila offers education loans for 1,000+ institutions across 35+ countries
  • list items Offers education loans against properties mortgaged with HDFC Bank
  • list items Semi-collateral education loans are possible
  • list items For select countries, such as the US, HDFC Credila offers education loans without a co-applicant for applicants with 310+ GRE scores and work experience
  • list items Education loans from HDFC Credila give tax benefits under section 80 E 
  • Avanse

    Founded in 2013, Avanse financial services offer customized education loans for deserving students to study abroad. The major features of Avanse include the following: 

  • list items Avanse offers education loans for 3,000+ institutions across 50+ countries
  • list items Education loans by Avanse are highly flexible for the student
  • list items The acceptance rate is high for Avanse than any other lender of education loans  
  •  

     

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    Interest rates for HDFC Credila and Avanse abroad education loans

    Interest rate is a key concern in selecting your education loan. HDFC Credila and Avanse offer floating interest rates that vary with countries and courses. 

  • list items HDFC Credila education loans: interest rates vary between 11.25% - 13%. 
  • list items Avanse education loans: interest rates vary between 12% - 13.25%. 
  •  

    See the table below for country-specific interest rates on education loans by HDFC Credila and Avanse: 

    Country HDFC Credila Avanse

    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

    The interest has to be paid in the moratorium period. Generally, the interest rates are lower for STEM courses and are flexible for students with high academic merits and co-applicant income. 

    Check Your Education Loan Eligibility

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    Country specific differences between HDFC Credila and Avanse education loan

    When selecting an education loan, the country and course of study can be crucial parameters. HDFC Credila and Avanse have different caps for the maximum loan amount for various countries. 

    Since the cost of study and living is different, the maximum loan amount changes for different countries abroad. 

    Here is the list of top countries to study abroad and the maximum loan amount by HDFC Credila and Avanse. Under the maximum amount, you can see the minimum income of the co-applicant (known as FOIR - Fixed Obligation to Income Ratio) required for an unsecured education loan.

    Country HDFC Credila Avanse

    Australia

    Up to INR 20 - 30 Lakhs

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

    Up to INR 20 - 30 Lakhs

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

    Canada

    Up to INR 20 - 40 Lakhs

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

    Up to INR 20 - 40 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 - 30 Lakhs

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

    Ireland

    Up to INR 20 - 30 Lakhs

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

    Up to INR 20 - 30 Lakhs

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

    New Zealand

    Up to INR 20 - 30 Lakhs

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

    Up to INR 20 - 30 Lakhs

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

    United Kingdom

    Up to INR 20 - 30 Lakhs

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

    Up to INR 20 - 30 Lakhs

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

    United States

    Up to INR 40 - 75 Lakhs

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

    Up to INR 40 - 75 Lakhs

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

     

    Note: For the top 100 QS-ranked universities, Avanse can offer education loans up to INR 40 Lakhs. 

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    Repayment tenure for HDFC Credila and Avanse Education Loans

    An important factor in selecting an education loan is its repayment tenure. HDFC Credila and Avanse offer a longer repayment period of 12 - 15 years. The repayment will be in Simple Interest (SI) or Partial Simple Interest (PSI), depending on various factors such as the country and course of study. The repayment period includes the moratorium period. 

    Generally, STEM courses are given the option of PSI, whereas non-STEM courses are given the option of SI. The interest repayment starts after the loan is disbursed.    

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    HDFC Credila vs Avanse: Which is a better deal for you? 

    HDFC Credila and Avanse benefit the students in their own ways. Deciding which is better for you depends on your eligibility and preference. 

    However, the following points may help to decide which is better for you among HDFC Credila and Avanse: 

  • list items Check the universities and courses covered by HDFC Credila and Avanse and see which education loan is available for your case. If your university or course hasn’t been listed by them, explore which lender has more chances for negotiations  
  • list items If you get admission to a top institute abroad, HDFC Credila can be your first preference since it gives you comparatively lesser-interest education loans with tax benefits  
  • list items Education loans by HDFC Credila are available for more states and Union Territories in India compared to Avanse  
  • list items If you have more backlogs, Avanse has higher odds of approval than HDFC Credila. Also, Avanse covers more countries and 3 times the institutions covered by HDFC Credila
  •  

    If you are eligible, an education loan from HDFC Credila can be prioritized for its tax benefits and interest concessions. Even a small difference in the tax will save you lakhs as the repayment is a matter of 10 - 15 years for an education loan. But that doesn’t make Avanse an inferior choice because it is highly flexible for your needs and situations. To find a solution, estimate your monthly EMI using a calculator and compare HDFC Credila and Avanse loan products to see the difference and make the right choice. 

    As a matter of fact, your choice matters only if you match the eligibility criteria set by the lenders. Ensure you are eligible for an education loan from HDFC Credila or Avanse. It is advisable you explore the best education loan options available for your profile besides HDFC Credila or Avanse since your aim is to get the best education loan. 

    Here’s how you see the eligibility for HDFC Credila or Avanse education loans - check your education loan eligibility right now!

    Read also

  • list items HDFC Credila Education Loan
  • list items Avanse Education Loan
  • list items Documents Required for Education Loan
  • list items Education Loan Without Collateral
  • list items HDFC Credila Education Loan Disbursement Process
  • list items Avanse Education Loan Disbursement Process
  • list items Avanse vs Prodigy
  • list items HDFC credila vs auxilo
  • list items Axis Bank vs Credila
  • list items HDFC Credila vs SBI
  • list items Avanse vs Auxilo
  • Calculate your Education Loan EMI

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    Frequently asked questions

    Which is better for MS in the US education loan - HDFC Credila or Avanse?

    Depending on your eligibility, HDFC Credila or Avanse can be the better option. Both lenders offer education loans up to INR 75 Lakhs for MS in the US. 

  • list items While HDFC Credila provides education loans for MS in the US at an interest rate of 11.50% - 12%, Avanse charges an interest of 12% - 12.25%. 
  • list items HDFC Credila offers tax benefits under section 80 E. 
  • So, if eligible, HDFC Credila can be the better lender. But as the list of eligible universities is limited for HDFC Credila, make sure your university is eligible for an education loan from HDFC Credila. 

    What is the difference between HDFC and HDFC Credila?

    HDFC is a private sector bank in India, whereas HDFC Credila is an NBFC for education loans. HDFC Credila is an HDFC. Ltd subsidiary company. HDFC Credila is closely linked to HDFC Bank, so it is possible to get an education loan from HDFC Credila against a property mortgaged with HDFC Bank. 

    What is the processing fee for HDFC Credila and Avanse education loans? 

    The loan processing fee is the amount the lender charges to process and evaluate the loan application. The processing fee for HDFC Credila and Avanse education loans is fixed, which is 1% - 2% of the loan amount plus GST. 

    How many days does it take to get an education loan from HDFC Credila and Avanse?

    Compared to banks, the loan processing time is lesser for NBFCs like HDFC Credila and Avanse. It takes around 7 - 10 days after document submission to get an education loan from HDFC Credila and Avanse. 

    Which lender has more chance of accepting my application - HDFC Credila or Avanse? 

    Compared to HDFC Credila, Avanse has a higher acceptance rate of applications. However, operations of Avanse are restricted to select cities and do not penetrate to remote or rural regions. On the other hand, HDFC Credila offers education loans to more states and Union Territories than all other NBFCs.

    Check Your Education Loan Eligibility


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