Education Loan

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

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

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

GyanDhan
Updated on:  23 Oct 2023  | Reviewed By: 
Aman 
| 1.7K | 11  min read
Axis bank vs HDFC Credila


In the last financial year, the Indian financial market witnessed INR 17,000 Cr worth of education loans disbursed. The situations are positive for students planning their study abroad with an education loan, and the crucial thing is selecting the lender who offers the best education loan. 

Axis Bank and HDFC Credila are two prominent lenders in the Indian market for study abroad loans. Both lenders offer education loans under different categories, but which is better depends on your eligibility and personal preferences.

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Comparative overview of HDFC Credila vs. Axis Bank Education Loans

Noticeable common features for education loans by Axis Bank and HDFC Credila include options for secured vs. unsecured education loans and tax benefits under section 80 E. The table below gives you a comparative overview of the features of education loans by Axis Bank and HDFC Credila to study abroad: 

 

Top features Axis Bank HDFC Credila

Maximum loan amount

Up to INR 40 - 75 Lakhs

INR 20 - 75 Lakhs (depending on the country)

Interest rate*

11% - 11.5%

11.5% - 12% 

Moratorium period

Course period + 1 year

Course period + 1 year

Repayment during the moratorium period

Simple Interest (SI)

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

Processing fee

0.75% of the loan amount + GST

0.5% - 1.5% of the loan amount + GST

Margin money 

0% - 5% of the loan amount 

Nil

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

INR 35,000

INR 20,000 - 50,000

Loan tenure

15 years excluding the moratorium period

12 - 15 years including the moratorium period

Loan Approval Basied on GRE / GMAT? 

Yes

Yes

Credit life insurance premium 

1.25% - 1.5% of the loan amount

1.25% - 1.5% of the loan amount

Give Pre Admission Loans 

Yes

Yes

 

*Interest rate as on July 2023

Check Your Education Loan Eligibility

The major differences between Axis Bank and HDFC Credila include the range of loan amounts, interest rates, repayment period, and eligible countries and institutions. To decide your lender, dive deep into the unique features, mandatory conditions, and details of abroad education loans by Axis Bank and HDFC Credila, which begins with familiarizing with the lenders. 

Axis Bank

Founded in 1993, Axis Bank is a prominent private sector bank with 5,625 branches across the states and Union Territories in India. Education loans from the Axis Bank start from INR 50,000 and fund the higher education of eligible applicants with or without collateral security at affordable interest rates. 

  • list items The education loans help students study in Axis Bank-listed institutions
  • list items Education loans for working professionals (up to INR 40 Lakhs) are available
  • list items Generally, due to their internal benchmark lending rate difference, Axis Bank education loans have lesser fluctuations in interest rates compared to many other lenders like HDFC Credila. The internal components, like MCLR*, are charged accordingly to avoid differences in the effective interest rate. 
  • list items No cap for loan amounts is there if the collateral value is sufficient
  • list items Central Sector Interest Subsidy Scheme is available for education loans

*MCLR: The MCLR or Marginal Cost of Funds Based Lending Rate is the benchmark interest rate below which banks can’t lend. The RBI introduced it in 2016 to make the lending process more democratic and uniform for all lenders. 

HDFC Credila

HDFC Credila was founded in 1977 for housing loans and, in 2006, became a dedicated NBFC for education loans, later becoming the oldest NBFC in India for education loans. Features of HDFC Credila include the following: 

  • list items The education loan covers 1,000+ institutions across 35+ countries
  • list items Properties mortgaged with HDFC Bank can be collateral for Credila education loans
  • list items High amounts of unsecured education loans can be availed
  • list items HDFC Credila allows for semi-collateral education loans 
  • list items HDFC Credila offers educations loans for working professionals to study executive MBA
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Loan amount limit for Axis Bank and HDFC Credila

The maximum loan amount from Axis Bank is INR 75 Lakhs in secured education loans. For unsecured education loans, Axis Bank offers up to INR 50 Lakhs for Prime A-listed institutions and up to INR 40 Lakhs for Prime B-listed institutions. 

HDFC Credila education loan amount varies between INR 20 - 75 Lakhs for different countries and courses as listed below: 

 

Country Maximum loan amount by HDFC Credila

Australia

STEM courses: INR 20 - 30 Lakhs

Non-STEM courses: INR 25 Lakhs

Canada

STEM courses: INR 30 - 40 Lakhs

Non-STEM courses: INR 20 - 25 Lakhs

Germany

STEM courses: INR 20 - 30 Lakhs

Non-STEM courses: INR 25 Lakhs

Ireland

STEM courses: INR 20 - 30 Lakhs

Non-STEM courses: INR 25 Lakhs

New Zealand

STEM courses: INR 20 - 30 Lakhs

Non-STEM courses: INR 25 Lakhs

UK

STEM courses: INR 20 - 30 Lakhs

Non-STEM courses: INR 25 Lakhs

US

STEM courses: INR 75 Lakhs

Non-STEM courses: INR 40 Lakhs

 

Make sure your university is listed by Axis Bank or HDFC Credila for study abroad loans. If not, negotiate with the lender based on the academic and financial weightage your application has. 

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Interest rates for HDFC Credila and Axis Bank education loans

Education loan interest rates can be fixed or floating, according to the lender’s decision, based on the market conditions. Axis Bank offers an interest rate of 11% - 11.5% for unsecured education loans and 9.8% - 10.5% for secured loans, depending on the collateral value. 

HDFC Credila education loan interest rates fall between 11.25% - 13%, varying with countries, as in the table below: 

Country HDFC Credila

Australia

12% - 12.5%

Canada

12% - 12.5%

Germany

12% - 12.5%

Ireland

12% - 12.5%

New Zealand

12% - 12.5%

UK

12% - 12.5%

US

11.5% - 12.5% 

 

*Interest rate as of July 2023

For both lenders, the interest has to be paid during the moratorium period. Axis Bank offers Simple Interest (SI), and HDFC Credila offers Simple or Partial Simple Interest (PSI) on education loans. 

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Repayment tenure of Axis Bank and HDFC Credila

While selecting, ensure the education loan offers enough time to repay the education loan. The repayment tenure for the Axis Bank education loan is 15 years, excluding the moratorium period, while the same for the HDFC Credila loan is 12 - 15 years, including the moratorium period. However, the repayment tenure is flexible and can be trimmed or extended after negotiations with the lender. 

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Types of Education Loans by Axis Bank and HDFC Credila

Education loans can be taken against collateral security or co-applicant income, depending on your eligibility and situation. Here are the details of secured and unsecured education loans by Axis Bank and HDFC Credila to help you decide which is more suitable.

Secured education loans from Axis Bank and HDFC Credila

Secured education loans by Axis Bank funds up to INR 75 Lakhs. The interest rate starts from 9.8% onwards for secured education loans.

  • list items For residential properties, the maximum loan amount can be up to 85% of the collateral value if the co-applicant is salaried and up to 75% if the co-applicant is self-employed.
  • list items For commercial properties, the maximum loan amount can be up to 50% of the commercial property value.
  • list items For fixed deposits, students can get up to 90% of the fixed deposit value, and the fixed deposit must be in the Axis Bank account. 

 

Secured education loan by HDFC Credila funds 100% of the study-related expenses if the collateral value is sufficient. For secured education loans from Credila, the co-applicant can be any relative of the applicant, whereas Axis Bank mandates the co-applicant must be someone from the student’s close family. 

  • list items The Interest Spread is fixed based on the collateral submitted, meaning that the interest rate can be lower if the collateral value is high and the risk factor is less. 
  • list items The following can be the collateral for an education loan from HDFC Credila: Residential flat or house Non-agricultural land A fixed deposit, assigned in favor of HDFC Credila HDFC second charge property Commercial property - shop
  • list items Residential flat or house
  • list items Non-agricultural land
  • list items A fixed deposit, assigned in favor of HDFC Credila
  • list items HDFC second charge property
  • list items Commercial property - shop

Unsecured education loans from Axis Bank and HDFC Credila

Axis Bank unsecured education loans: As mentioned earlier, up to INR 40 - 50 Lakhs is available for Prime A & B institutions. Typically, the course of study must be STEM or MBA for unsecured loans to study abroad.

  • list items The co-applicant must be from the immediate family, who can be the applicant's father, mother, sibling, or spouse. 
  • list items The co-applicant must earn an income of at least INR 35,000 per month without any obligations. 

HDFC Credila unsecured education loans: HDFC Credila offers unsecured education loans of high amounts based on the co-applicants income. Compared to Axis Bank, the list of eligible universities is flexible for HDFC Credila.

Depending on the country and course (STEM or non-STEM), the minimum co-applicant income requirement varies between INR 20,000 - 50,000 without any obligations.

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GRE score-based education loans by Axis Bank and HDFC Credila 

Axis Bank and HDFC Credila offer education loans based on GRE scores for studies abroad. High GRE scores can bring flexibility to the loan amount, interest rate, repayment tenure, etc., for education loans to study abroad from Axis Bank. How it will be in effect depends on the strength of the student’s profile and can vary from case to case. 

Similarly, HDFC Credila offers education loans without a co-applicant if the GRE score is 320+ and the student gets admission to a top university under 100 of QS world university rankings. From Credila, the student with a GRE score of 320+ or GMAT score of 700+, admission to a top university under 100 of QS world university rankings, and high co-applicant income is eligible for a 0.5% interest concession.

 

Get Guaranteed Best Loan with GyanDhan
Find a Better Loan Offer Elsewhere & We Will Cover the Difference in Interest

 

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Which is better deal for you - Axis Bank or HDFC Credila?

Determining the better option among education loans from Axis Bank and HDFC Credila depends on various factors concerning your situation and eligibility. You may go through the loan terms mentioned above to make an informed choice. 

The following are some observations regarding education loans by Axis Bank vs. HDFC Credila that may help you with a better selection: 

  • list items In secured education loans, Axis Bank offers better interest rates compared to HDFC Credila. However, the property valuation time is longer for Axis Bank compared to HDFC Credila.
  • list items For unsecured education loans for universities listed under Prime categories, Axis Bank offers lower interest rates with lesser fluctuations and longer repayment tenure than HDFC Credila.
  • list items Axis Bank may require a local guarantor, whereas HDFC Credila has a less physical presence and does not require a local guarantor.
  • list items HDFC Credila is more flexible with co-applicant requirements, documentation, and country and course of study than Axis Bank.

Generally, banks can be prioritized over NBFCs for education loans due to lower interest rates and high acceptance rates for visa applications. Note that all countries do not accept education loans from NBFCs for visa purposes. In that context, an education loan from Axis Bank has more weightage than one from HDFC Credila. 

However, as it is case specific to determine the best education lender from Axis Bank and HDFC Credila, you may get in touch with us to find the best education loan for you. We will evaluate your profile and suggest the best option. Check your education loan eligibility for more details. 

Read also:

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Frequently asked questions

Which is better for secured education loans - Axis Bank or HDFC Credila?

It depends on your situation to finalize Axis Bank or HDFC Credila for secured education loans.

  • list items If your collateral has a higher value than the amount you need, Axis Bank can be the choice, considering the lower interest rates and fewer fluctuations in interest rates. 
  • list items If your collateral has less value than the loan amount, HDFC Credila can be the better choice since it is more flexible with the collateral value than Axis Bank. 

However, before choosing a lender, go through the terms and conditions thoroughly to make an informed decision considering your needs. 

Which is better for unsecured education loans - Axis Bank or HDFC Credila?

For unsecured education loans, Axis Bank listed eligible universities for loan amounts of more than INR 7.5 Lakhs. If your university is on the list, Axis Bank can be the preference. 

If your university is not listed by Axis Bank, HDFC Credila can be the ideal choice since HDFC Credila is more flexible with eligible universities and courses than Axis Bank. 

How can I apply for an education loan from Axis Bank or HDFC Credila?

You can apply either online or offline for an education loan from Axis Bank. 

  • list items To apply online, the easiest way is to check your eligibility and get in touch with GyanDhan for guidance throughout the process. 
  • list items To apply offline, you may visit the nearest branch of Axis Bank with the documents required for an education loan. The officials will provide you with guidance on the application. 

Check Your Education Loan Eligibility


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