Two of the prominent players in the Indian banking sector, Axis Bank and HDFC Credila, offer specialised abroad education loan products to help students finance their dreams of studying abroad. In this blog, we will understand the features, benefits, and eligibility criteria of the education loans provided by Axis Bank Vs HDFC Credila Education loan, enabling you to make an informed decision that aligns with your specific needs and financial circumstances.
Pursuing higher education abroad has become an increasingly popular choice for Indian students, as it provides them with a chance to gain exposure to diverse cultures, advanced educational facilities, and a globally recognised degree. However, the high costs associated with studying in foreign universities can pose a significant financial burden. This is where education loans from reputed banks come into play.
Axis Bank & HDFC Credila Education Loan Key Features Comparison
Both Axis Bank and HDFC Credila offer notable common features for their education loans, such as the options for secured and unsecured loans, as well as tax benefits under Section 80E of the Indian Income Tax Act. The following table provides a comparative overview of the key features of the education loans offered by Axis Bank and HDFC Credila for studying abroad:
| Key Features | HDFC Credila Education Loan | Axis Bank Abroad Education Loan |
| Max. Loan Amount | 100% finance for secured loans. INR 75 Lakhs for unsecured loans | Minimum Rs. 50,000 onwards |
| Interest Rates | 9-13.5% | 13-15% p.a |
| 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) |
| Loan Approval Based on GRE / GMAT? | Yes | Yes |
| Processing fees | 0.75-1%+ GST | 2% of loan amount + GST |
Difference Between Axis Bank & HDFC Credila Education Loan Benefits
The key distinctions between Axis Bank and HDFC Credila lie in the scope of loan amounts, interest rates, repayment durations, and eligible countries and institutions. To select the most suitable lender for your needs, it is essential to delve into the unique benefits, mandatory requirements, and intricacies of the study-abroad education loans offered by both Axis Bank and HDFC Credila.
The process begins with gaining a comprehensive understanding of each lender’s offerings. Refer to the table below to understand the loan offerings of both lenders:
| HDFC Credila Key Benefits | Axis Bank Key Benefits |
| Loans cover over 1,000 institutions across 35+ countries | Loans available for Axis Bank-listed institutions |
| Properties mortgaged with HDFC Credila can be used as collateral | Loans available for working professionals (up to ₹40 lakhs) |
| Offers high amounts of unsecured education loans | Generally, lower interest rate fluctuations due to their internal benchmark lending rate |
| Allows for semi-collateral education loans | No cap on loan amounts if the collateral value is sufficient |
| Provides education loans for working professionals to study executive MBA | Central Sector Interest Subsidy Scheme available |
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Secured and Unsecured Loan Amount Limit For Both The Banks
The overall loan limit for Axis Bank Vs. HDFC Credila is 100% financing for abroad education loans in case of sufficient secured education loans. However, there are different loan amounts you can borrow as secured or unsecured education loans depending on the country you are planning to study in. Let’s refer to the table below for a better understanding:
| Country | Axis Bank Secured Loan | Axis Bank Unsecured Loan | HDFC Credila Secured Loan | HDFC Credila Unsecured Loan |
| USA | 2.5 CR | 75 Lakhs | 1.5CR | 75 Lakhs |
| UK | 2.5 CR | 75 Lakhs | 1 CR | 35 Lakhs |
| Ireland | 2.5 CR | 75 Lakhs | 1 CR | 30 Lakhs |
| Canada | 2.5 CR | 75 Lakhs | 1 CR | 30 Lakhs |
| Australia | 2.5 CR | 7.5 Lakhs | 1 CR | 50 Lakhs |
| France | 2.5 CR | 75 Lakhs | 1 CR | 25 Lakhs |
| New Zealand | 2.5 CR | 75 Lakhs | 1 CR | – |
Interest rates for HDFC Credila and Axis Bank education loans
The interest rates charged on education loans can be either fixed or floating, determined by the lenders based on prevailing market conditions. Axis Bank offers interest rates ranging from 13% to 15% for both secured and unsecured education loans.
On the other hand, HDFC Credila’s education loan interest rates vary between 9% and 13.5%, with the specific rate dependent on the country where the student plans to study. The table below illustrates the interest rate range for different countries:
| Country | HDFC Credila |
| Australia | 12% – 12.5% |
| Canada | 12% – 12.5% |
| Ireland | 12% – 12.5% |
| New Zealand | 12% – 12.5% |
| UK | 12% – 12.5% |
| US | 11.5% – 12.5% |
Axis Bank Vs HDFC Credila Education Loan Repayment Terms
When selecting an education loan, it is essential to ensure that the repayment tenure is sufficient to comfortably manage the loan. Axis Bank offers an education loan repayment period of 15 years, excluding the period of moratorium in education loans, during which repayment is not required. In contrast, HDFC Credila provides a repayment tenure of 12 to 15 years, including the moratorium period.
It is important to note that the student loan repayment tenure is not rigid and can be adjusted after negotiations with the lender. Borrowers have the flexibility to either shorten or extend the repayment duration based on their specific circumstances and financial capabilities. This adaptability allows borrowers to tailor the loan terms to their individual needs, ensuring a manageable repayment plan throughout the life of the loan.
Education Loan Application Process
Are you struggling to choose between Axis Bank Vs. HDFC Credila for your education loan? UniCreds offers personalised guidance to help you identify the best loan option that aligns with your unique needs. Follow these simple steps to apply through UniCreds:
- Step 1: Visit our website and complete the inquiry form by providing your details
- Step 2: Our experts will reach out to you to understand your specific requirements and priorities
- Step 3: Submit the requested documents as advised to enable a thorough evaluation of your eligibility
- Step 4: Based on the assessment, we will recommend the optimal education loan scheme from either Axis Bank or HDFC Credila
- Step 5: Once you select the loan, we will forward your application for processing
- Step 6: Our counsellors will continuously follow up with the bank to facilitate quicker loan approval and disbursal
UniCreds provides this assistance free of cost, without any hidden charges. We strive to negotiate loans with lower processing fees to benefit you
Before proceeding with the application, determine the assets you are willing and able to pledge as collateral, the margin money in student loans, etc. This preparation ensures you have the necessary collateral documentation and finances ready during the approval process.
Education Loan Documents Required
Both the HDFC Credila and Axis Bank education loans require more or less the same set of documents for education loan disbursal. The table given below states the documents required for Axis Bank and HDFC Credila education loans:
| Document | Description |
| Identity Proof | Documents such as PAN card, Aadhaar card, Voter ID, Passport, etc. to establish the identity of the applicant and co-applicant. |
| Address Proof | Documents like utility bills, bank statements, rental agreements, etc. to validate the applicant’s and co-applicant’s current address. |
| Admission Letter | An official letter from the university or college confirming the applicant’s admission to the desired educational program. |
| Brochure/Prospectus | A document providing details about the university or college, the course, fees, and other relevant information. |
| Passport Copy | A copy of the applicant’s valid passport. |
| Visa Copy | A copy of the applicant’s student visa, if applicable. |
| Income/Bank Statement | Recent income or bank statements of the applicant and co-applicant to assess their financial capacity. |
| Signature Verification | A document verifying the signatures of the applicant and co-applicant. |
| Photograph | Recent passport-size photographs of the applicant and co-applicant. |
| Asset Proof | Documents like property papers, investment statements, etc. to establish the applicant’s or co-applicant’s assets (required for secured loans). |
| Salary Slips | Recent salary slips of the applicant or co-applicant (required for working professionals). |
| Collateral Security | Documents related to the collateral being pledged for a secured loan, such as property papers, vehicle documents, etc. |
| Margin Money | A specific percentage of the total cost of education that the applicant needs to provide as a margin (the percentage varies based on the lender’s policies). |
Axis Bank Vs HDFC Credila Abroad Education Loan Options
Both Axis Bank and HDFC Credila offer multiple education loan solutions, each with its unique strengths and features. Axis Bank’s diverse range of loan products caters to various student profiles, while HDFC Bank’s Credila Education Loan is a specialised offering designed specifically for students studying abroad.
Prospective borrowers should carefully evaluate their individual requirements, eligibility criteria, and loan terms to determine the best fit for their educational requirements and financial circumstances. Given below are the education loan offerings by both the banks:
1. Axis Bank Prime Abroad Education Loan: The Axis Bank Prime Education Loan scheme is designed to help students secure funding to pursue their dreams of higher education at top-tier international institutions.
2. Axis Bank GRE-Based Funding: The GRE-based Funding loan from Axis Bank is a specialised offering designed for students who meet the eligibility criteria based on their Graduate Record Examination (GRE) scores. The higher the scores, the more collateral concessions are given to the students.
3. Axis Bank Education Loan for Higher Studies: Caters to students aspiring to pursue post-secondary studies, whether in India or abroad.
4. HDFC Credila Education Loan: HDFC Credila is a part of HDFC Ltd. specialising in extending education loans for abroad studies dedicatedly.
Axis Bank Or HDFC Credila Which Is Better?
To determine which bank is best, Axis Bank or HDFC Credila, it’s essential to consider various factors objectively and compare them based on available data. Here’s an unbiased, data-centric analysis:
- Loan Amounts:
- HDFC Credila offers higher loan amounts, with secured loans up to ₹1.5 crore and unsecured loans up to ₹1 crore, compared to Axis Bank’s secured loans up to ₹1 crore and unsecured loans up to ₹75 lakhs.
- HDFC Credila’s higher loan limits may be more suitable for students seeking to finance their education at more expensive institutions.
- Interest Rates:
- HDFC Credila’s interest rates range from 9% to 13.5%, while Axis Bank’s interest rates are higher, ranging from 13% to 15%.
- HDFC Credila’s lower interest rates can potentially result in lower overall borrowing costs for students.
- Repayment Tenure:
- Both banks offer a similar repayment tenure, with Axis Bank providing a 15-year tenure (excluding the moratorium period) and HDFC Credila offering 12 to 15 years (including the moratorium period).
- The repayment tenure is comparable, allowing borrowers a reasonable time frame to repay the loan in both cases.
- Eligible Institutions:
- HDFC Credila covers over 1,000 institutions across 35+ countries, while Axis Bank loans are available for Axis Bank-listed institutions.
- HDFC Credila’s broader coverage may be advantageous for students seeking education at a wider range of global institutions.
- Additional Benefits:
- HDFC Credila allows for semi-collateral education loans and offers loans for working professionals to pursue executive MBA programs, providing more options and flexibility.
- Axis Bank education loans are eligible for the Central Sector Interest Subsidy Scheme, which can help reduce the overall interest burden.
Based on the data, HDFC Credila appears to be a more favourable option for most students due to its higher loan limits, lower interest rates, broader institution coverage, and additional benefits like semi-collateral loans and loans for working professionals. However, Axis Bank’s eligibility for the Central Sector Interest Subsidy Scheme may be more advantageous for some borrowers.
Ultimately, the choice between Axis Bank and HDFC Credila should be based on an individual’s specific requirements, such as the loan amount needed, the institution they plan to attend, their eligibility for interest subsidies, and their overall financial circumstances. It’s essential to carefully evaluate all factors and compare the options to make an informed decision.
We have also compared Axis Bank vs ICICI Bank education loans before. Hope you go through that article for a broader understanding.
FAQs
1. Which bank is better: Axis Bank or HDFC Credila?
Both banks offer competitive education loan products, and the choice should be based on factors such as loan amounts, interest rates, repayment tenure, eligible institutions, and additional benefits that align with the borrower’s specific needs.
2. Which bank offers better interest rates for education loans, Axis Bank or HDFC Credila?
HDFC Credila offers better interest rates for education loans compared to Axis Bank. HDFC Credila’s interest rates range from 9% to 13.5%, which is lower than Axis Bank’s interest rates of 13% to 15%.
3. Can you compare the processing fees for education loans at Axis Bank and HDFC Credila?
The processing fee of HDFC Credila is 0.75-1%+ GST whereas Axis Bank’s processing fee is 2% of the loan amount + GST.
4. What is the maximum loan amount offered by Axis Bank and HDFC for education purposes?
There is no maximum loan amount, both banks finance 100% of your abroad studies if you provide sufficient security.
5. Are there any specific eligibility criteria that differ between Axis Bank and HDFC Credila education loans?
Both banks typically consider factors such as the applicant’s academic performance, admission to a recognised institution, financial capacity, collateral (for secured loans), and other standard requirements when evaluating loan eligibility.
6. How do the repayment terms vary between Axis Bank and HDFC Credila education loans?
Repayment terms for Axis Bank education loans typically offer a moratorium period of up to 1 year after course completion, while HDFC Credila offers a similar moratorium period but may extend up to 6 months post-course completion based on individual circumstances.
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