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

Geeta Chauhan
June 10, 2024
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Pursuing an education loan is gaining momentum as it provides exposure to diverse cultures and –advanced educational facilities. However, it can’t be denied that finance is a very significant factor that rules the decision to get an education abroad.

There are many noteworthy lenders who provide education loans to help students finance their dream of studying abroad. HDFC Credila and Axis Bank are among such prominent lenders. This blog will assist you in making an informed decision about which lender to choose and the associated factors that you should consider while deciding which one is better for education loans.

HDFC Credila vs. Axis Bank Education Loan Key Features Comparison

When it comes to education loans, both Axis Bank and HDFC Credila are trusted lenders and provide notable similar features.

Below is a comparative table that highlights the significant features of education loans from both banks.

Features	Axis Bank	HDFC Credila
Maximum Loan Amount	No upper limit for secured loans INR 75 Lakhs for Unsecured Loans	INR 1 Crore for secured loans INR 75 Lakhs for Unsecured Loan
Interest Rates	13.70- 15.20%.	9- 13.80%.
Moratorium Period(negotiable for secured education loans)	Course duration plus an additional six months (can be extended to 12 months)	Course duration
Repayment	Interest amount during the moratorium period EMI- Principle plus interest after the moratorium period	Interest amount during the moratorium period EMI- Principle plus interest after the moratorium period
Loan Approval based on GRE/GMAT	Yes	Yes
Processing Fees	2% of the loan amount + GST	0.75-1% of the loan amount + GST
Minimum co-applicant Income	INR 35,000 per month	INR 20,000 – 50,000 per month
Loan Tenure	15 years (excluding the moratorium period)	12-15 years (including the moratorium period)
Credit Life Insurance Premium	1.25% – 1.5% of the loan amount	1.25% – 1.5% of the loan amount
Pre Admission Loans	Yes	Yes

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Difference Between HDFC Credila vs. Axis Bank Education Loan Benefits

Though Axis Bank and HDFC Credila offer very similar features for education loans, there are certain distinctions that can affect your choice of lender.

To make a completely informed decision, it is imperative that you compare the unique benefits, mandatory requirements, repayment terms, etc.

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Benefits of Education Loan from Axis Bank

Loans are available for working professionals (Maximum amount is INR 40 Lakhs)
Interest rates are linked to Repo rates, hence lower interest rate fluctuations.
There is no cap on the maximum amount of loan if the collateral value is sufficient.
The benefit of the interest subsidy scheme by the Central Government is available.
Pre-admission sanction is available

Benefits of Education Loan from HDFC Credila

Properties mortgaged with HDFC Credila can be used as collateral
Higher amounts of unsecured loans are available
Lower interest rates, hence lower cost of borrowing.
Semi-collateral loans are also available.
HDFC Credila offers educational loans for over 1000 institutions across 35+ countries.

Types of Education Loans by Axis Bank and HDFC Credila

There are different types of education loans available and provided by Axis Bank and HDFC Credila. These education loans are approved on the basis of collateral security, income of the applicant/co-applicant, and other eligibility criteria.

Below are the details for different types of education loans provided by Axis Bank and HDFC Credila.

Secured Education Loans from Axis Bank and HDFC Credila

Secured loans are loans that are backed by some form of security or collateral.

Axis Bank

There is no cap on loan amount if collateral is sufficient
Residential properties, commercial properties and fixed deposits with Axis Bank can be used as a security for loans

HDFC Credila

INR 1 Crore is the maximum amount of secured education loans that HDFC Credila offers.
Residential properties, commercial properties, fixed deposits with HDFC Credila and HDFC Second charge properties can be used as a security for loans.

Unsecured Education Loans from Axis Bank and HDFC Credila

Both Axis Bank and HDFC Credila offer unsecured loans on fulfilment of certain conditions.

Axis Bank

There is a cap on loan amount of INR 75 Lakhs for unsecured loans
Co-applicant can be your spouse, parents, siblings or parent-in-law
Co-applicant must earn a minimum of INR 35,000 monthly

HDFC Credila

HDFC Credila also offers a maximum of INR 75 Lakhs for unsecured loans
Your family members can be your co-borrower
Co-applicant must earn a minimum of INR 20,000 – 50,000 Monthly

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GRE Score-Based Education Loans by Axis Bank and HDFC Credila

Axis Bank and HDFC Credila also offer education loans based on your GRE score.

Axis Bank

There is a cap on loan amount of INR 50 Lakhs for unsecured loans on the basis of GRE score
Loan tenure is 10 years

HDFC Credila

HDFC Credila also offers loans based on your GRE score if it is over 320 or GMAT score is over 700

Secured and Unsecured Loan Amount Limit For Both The Banks

Axis Bank and HDFC Credila offer secured and unsecured education loans. Below are the loan amount limits for both banks:

Axis Bank(Same for all countries)	Secured Loans	Unsecured Loans
Axis Bank(Same for all countries)	No upper limit	INR 75 Lakhs

Below is the country-wise maximum loan amount offered by HDFC Credila

Country	Maximum Loan Amount
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

Always ensure that the university you are about to study in is listed with your lender. In case it is not on the list, negotiate with the bank on the basis of your academic performance and financial weightage.

Interest Rates for HDFC Credila and Axis Bank Education Loans

The interest rate levied by the lender depends upon the prevailing financial circumstances in the country and current market conditions.

Below is the comparison of interest rates offered by Axis Bank and HDFC Credila:

Lender	Interest Rate
Axis Bank	13.70- 15.20%.
HDFC Credila	9- 13.80%.

Note: HDFC Credila may provide a lower rate of interest for education loans for study in the USA.

HDFC Credila Vs. Axis Bank Education Loan Repayment Terms

Repayment terms are very crucial when deciding where to take an education loan. Always ensure that repayment tenure is sufficient enough to manage the education loan comfortably without any delayed payment charges.

Repayment Terms for Axis Bank:

Axis Bank offers a moratorium period which includes the course duration plus an additional six months (which can be extended to 12 months). Only interest on the loan amount disbursed has to be paid during the said moratorium period and EMI for loan starts only after this period ends.
The repayment tenure Axis Bank provides is 15 years which excludes the moratorium period.
There are no prepayment penalties.

Repayment Terms for HDFC Credila:

The moratorium period offered by HDFC Credila is the duration of the course. During this period, only the interest amount is required to be paid and the principle plus interest EMI after this period ends.
The repayment period HDFC Credila provides is 12-15 years including the moratorium period.
Part closure or foreclosure is allowed.

It is always better to ensure that your lender provides flexibility in changing and adjusting loan repayment terms and tenure. Borrowers should have the facility to shorten or extend the repayment duration depending on the financial conditions and any other specific circumstances.

Education Loan Application Process

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Education Loan Documents Required

Axis Bank and HDFC Credila require almost the same set of documents for education loans. Here is the list of all the documents you may need to get education loans from these two lenders:

Document	Description
Application Form	Duly filled and signed application form and two passport-size photos
Educational Qualification	10/12th mark sheet and/or latest education certificate
Course Expenses	Statement of course of expenses or cost of study
Proof of Admission	Admission letter from the Institute on its letterhead
Identity Proof	Aadhar Card PAN Card
Age Proof	Aadhar Card Voter ID Passport Driving License
Residence Proof	Rental Agreement Copy of Ration Card Electricity Bill Telephone Bill
Income Proof	6-8 months bank statement of student/ co-applicant, if any Recent Salary Slips of Form 16 of the co-applicant Six months’ bank statement Updated ITR of two years of borrower and co-applicant Certified Financial Statements for the last two financial years (if the co-applicant is self-employed or professional)
Assets and Liabilities	Documents stating the assets and liabilities of the parent/guardian/co-borrower
If, Collateral	Property Title Deed Registered Sale Agreement Latest maintenance bills

Note: Banks may demand any additional document as they deem fit for the purpose of providing a loan.

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Axis Bank Or HDFC Credila Which Is Better?

There are multiple yardsticks that can test and compare education loans from Axis Bank and HDFC Credila. Below is the analysis based on related factors:

Loan Amounts:

HDFC Credila offers a maximum of INR 1 Crore of secured loans and INR 75 Lakhs of unsecured loans.
There is no upper limit for availing secured loans from Axis Bank and in the case of unsecured loans, the upper limit is INR 75 Lakhs.
Limits may get extended, depending upon the circumstances.

Interest Rates:

HDFC Credila offers education loans at interest rates ranging between 9 and 13.80%.
Axis Bank has interest rates between 13.70- 15.20%.
HDFC Credila offers lower interest rates that may impact and lower the overall borrowing cost.

Repayment Tenure:

HDFC Credila offers 12-15 years (including the moratorium period)
Axis Bank provides a 15-year tenure for repayment. This tenure excludes the moratorium period.

Eligible Institutions:

HDFC Credila offers educational loans for over 1000 institutions across 35+ countries.
Axis Bank provides educational loans for institutes listed with the bank.

Additional Benefits

HDFC Credila also offers semi-collateral educational loans and loans for working professionals to pursue programs like MBA.
Axis Bank provides education loans to the economically weaker section as per the Central Government Interest Subsidy Scheme.

Both Axis Bank and HDFC Credila offer competitive features. While the interest rate on education loans from HDFC Credila has lower interest rates, Axis Bank offers bigger amounts of education loans.

Further, Axis Bank’s education loans offered under scheme of Central Government may suits borrowers from economically weaker section of the country. And, HDFC Credila has wider university coverage.

In the end, it all depends on your requirements and their alignment with features offered by HDFC Credila and Axis Bank. Always remember to compare all the aspects and make an informed decision.

Frequently Asked Questions

Which bank is better: Axis Bank or HDFC Credila?

The decision to choose between Axis Bank and HDFC Credila depends on multiple factors including the amount of loan required, interest rates, repayment schedule, eligible institutions and other terms and conditions. These factors should align with the borrower’s needs as both banks offer competitive loan options.

Which bank offers better interest rates for education loans, Axis Bank or HDFC Credila?

In terms of interest rates, HDFC Credila provide better interest rates ranging between 9 to 13.80% while Axis Bank offers education loans at interest rates of 13.70- 15.20%.

Can you compare the processing fees for education loans at Axis Bank and HDFC Credila?

Processing fees for education loans by Axis Bank is 2% of the loan amount plus applicable GST and for HDFC Credila, the processing fee is 0.75-1% of the loan amount plus applicable GST.

What is the maximum loan amount offered by Axis Bank and HDFC for education purposes?

Both banks provide a maximum of INR 75 Lakhs (unsecured loans). However, there is no upper limit for secured loans for both banks.

Are there any specific eligibility criteria that differ between Axis Bank and HDFC Credila education loans?

Both banks consider almost the same factors while checking eligibility criteria for availing education loans. These factors include the applicant’s academic performance, the university and the program they are enrolled in, financial capability, collateral and co-applicant details, and other relevant factors.

How do the repayment terms vary between Axis Bank and HDFC Credila education loans?

Axis Bank offers a moratorium period which includes the course duration plus an additional six months (which can be extended to 12 months). The moratorium period offered by HDFC Credila is the duration of the course.

References:

FAQ Repayment terms

https://www.hdfccredila.com/faqs/f-repayment-terms.html#:~:text=When%20do%20I%20start%20paying%20my%20EMI%3F. Accessed 06th June 2024

Education Loan: HDFC Credila

https://www.hdfccredila.com/education-loan-details/education-loan-detail.html#:~:text=Further%2C%20HDFC%20Credila%27s%20option%20of%20an%20education%20loan%20sanction%20even%20before%20admission%20confirmation%20has%20helped%20many%20students%20show%20%27proof%20of%20funds%27%20to%20universities%2C%20a%20pre%2Drequirement%20for%20admission Accessed 06th June 2024

Education Loan: Apply for Student Loan

https://www.axisbank.com/retail/loans/education-loan#menuTab. Accessed 06th June 2024

Education Loan Sub-Variant

https://www.axisbank.com/retail/loans/education-loan/sub-variants#menuTab. Accessed 06th June 2024

FAQs Repayment terms

https://www.hdfccredila.com/faqs/f-repayment-terms.html. Accessed 06th June 2024

Central Government Subsidy