Are you an Indian student caught at the crossroads of choosing the perfect education loan between HDFC Credilla and Prodigy Finance? The decision is crucial, and we’re here to simplify it. In this blog, we explore the benefits of both options, offering a clear comparison tailored to your needs. Explore the features of HDFC Credilla Vs—Prodigy Finance education loans to pursue your academic goals confidently. Let’s determine the best path for your educational finance, ensuring you make an informed, stress-free choice.
Key Takeaways-
- HDFC Credila and Prodigy Finance provide loans above Rs. 1 Lacs and cover 100% of tuition fees.
- HDFC Credilla requires collateral, whereas Prodigy Finance doesn’t.
- Both the banks have different key advantages, such as HDFC Credila’s wide network of partner institutions and Prodigy Finance’s focus on future earning potential.
- HDFC Credilla observes a floating interest rate according to its benchmark lending rate, and Prodigy Finance charges an 11.8% interest rate.
HDFC Credila Vs. Prodigy Finance Education Loan
HDFC Credila is India’s first dedicated education loan company, part of HDFC Ltd. Focused on transforming lives and supporting education dreams; they offer custom loans delivered to your doorstep. With over seven years of expertise, HDFC Credila ensures hassle-free education financing, even pre-approving loans before university applications.
Meanwhile, Prodigy Finance is an international student loan company that provides financing to students from developing countries attending top-tier universities abroad. Unlike conventional lenders who rely heavily on credit history and collateral, Prodigy Finance takes a forward-looking approach, assessing applicants based on their future earning potential and academic merit.
The table below differentiates key features of HDFC Credila Vs. Prodigy Finance Education Loan.
| Key features | HDFC Credila | Prodigy Finance |
| Loan amount | Rs. 1 lakh and above, no upper limit | 100% cost of attendance |
| Rate of Interest | Floating rate of interest according to Credila’s Benchmark Lending Rate | 11.8% |
| Repayment Tenure | Max 12 years | 7-20 years |
| Moratorium Period | Education course duration + grace period | 6 months post-course completion |
| Collateral Option | Residential Flat, Residential House, Non-Agricultural Land, A Fixed Deposit, assigned in favor of Credila | Not required |
| Processing Fees | 1-1.25% of the loan amount | NIL |
| Co-borrower option | Yes | Not required |
| Tax benefits | Section 80E | NA |
| Courses covered | Higher education in India, USA, and abroad | Higher education in top-tier universities abroad |
As you can see, both HDFC Credila and Prodigy Finance offer a variety of features and benefits to international students. The best option for you will depend on your individual needs and circumstances.
Next, we will take a look at the eligibility criteria for each of these lenders.
HDFC Credilla Vs. Prodigy Finance Education Loan- Eligibility Criteria
Understanding the eligibility criteria lenders consider when evaluating loan applications is important. They typically include academic merit, financial background, and future earning potential. By understanding the eligibility criteria of each lender, you can assess your qualifications and identify the lender most likely to provide financial support for your international education aspirations.
The following table differentiates the eligibility criteria of HDFC Credila Vs. Prodigy Finance education loan.
| HDFC Credila | Prodigy Finance |
| The borrower must be an Indian citizen. | Applicant must be admitted to a school they support |
| Co-applicants(s) must be an Indian citizen. | Applicant must be planning to study abroad |
| Co-borrower(s) must have a bank account in any bank in India with cheque writing facilities. | Applicant must reside in the countries they support |
| Borrower and Co-applicant(s) to meet HDFC Credila’s credit and underwriting as applicable from time to time. | Click here to learn about the schools they support. Click here to learn about the countries they support. |
Both financial institutions have pretty simplified and minimal eligibility criteria. Now let’s move on to the advantages of HDFC Credila Vs. Prodigy Finance education loan.
HDFC Credila Vs. Prodigy Finance Education Loan- Key Advantages, Application Process, & Supporting Documents
Having explored the key features and eligibility criteria of HDFC Credila and Prodigy Finance, we now delve into the practical aspects of securing an education loan from either provider. In this section, we’ll offer a comprehensive overview of each lender’s application process, documentation requirements, and key advantages, enabling you to make an informed decision about their financial aid.
Why Choose The HDFC Credila Education Loan?
- HDFC Credila provides education loans personalized to your specific needs.
- Avail education loans without worrying about putting down any upfront payment.
- Expenses relating to your education are covered in full.
- Under Section 80 E, you can benefit from tax advantages that can ease the financial burden of your education.
- HDFC Credila offers education financing with rates that are reasonable and competitive.
- There’s no cap on the loan amount, accommodating your diverse educational needs.
- With long-term repayment options, you can enjoy comfortable EMIs.
- Enjoy flexibility in collateral requirements, making the loan application process smoother.
- Secure your education loan against property mortgaged with HDFC for added financial security.
HDFC Credila Loan Application Process
Fill up the Online Application Form
⬇️
Visit HDFC Credila and Submit Documents
⬇️
Final Review, Approval, and Money Transferred to Your Bank
Documents Required For HDFC Credila Education Loan Application
- Fully Completed Loan Application Form
- Photo &Photo Id
- Residence Proof
- Academic Documents
- Proof of Admission
- Bank Statements
- Income proof of co-applicant
- Immovable Property Document
Why Choose Prodigy Finance Education Loan?
- Prodigy Finance provides loans based on your potential (not your current circumstances)
- They assess affordability based on your future earning potential. This means you don’t need a co-signer or collateral to apply for a loan.
- Prodigy supports students from more countries than any other lender.
- Over the years, they’ve developed a unique credit model, which means they can lend to students from 150 different countries worldwide.
Prodigy Finance Loan Application Process
Create an account on their online portal
⬇️
Apply for funding
(You’ll get a customised quote depending on your course.)
⬇️
Upload your documents
⬇️
Finalise your loan
(They’ll match your application with the funds raised from investors. If you’re matched, you’ll be notified so you can commit to your loan and get a loan sanction letter.)
⬇️
Sign your loan agreement digitally.
Documents Required for Prodigy Finance Education Loan Application
- Identity Proofs
- Proof of Adress
- School Admission Letter
- Credit Report
- Pre-Study or Post-Study Salary Slips
- Savings Account Statements of Family Member
Hope this information helped you get a clear understanding of HDFC Credial Vs. Prodigy Finance Education Loan. Now let’s help you decide between the two.
Selecting The Ideal Lender: HDFC Credila Vs. Prodigy Finance Education Loan
When choosing between HDFC Credila and Prodigy Finance, carefully consider your financial profile, academic background, and career aspirations. Assess the eligibility criteria, interest rates, repayment terms, and benefits each lender offers to determine which option aligns best with your needs.
Remember, the decision of an education loan provider should not be taken lightly. Conduct thorough research, compare options, and seek guidance from financial advisors if necessary. With careful consideration and informed decision-making, you can secure the financial support required to pursue your international education dreams.
FAQs-
1) How many days does it take to get a loan from Prodigy Finance?
Once you have signed your loan agreement and Prodigy Finance has released your funds, it takes between 3 to 5 business days for the funds to arrive in your school’s account.
2) Can we repay the Prodigy Finance and HDFC Credila loan early?
Yes! Both the banks do not charge prepayment fees.
3) Does prepayment help reduce EMI at HDFC Credila?
Prepayment helps in reducing the interest and principal component of the EMI in the ensuing months. When a borrower makes a prepayment, the outstanding principal amount reduces, and the interest due on the remaining balance decreases, which leads to lower EMIs or a shorter loan tenure.
4) Do these banks cover living expenses in the education loan?
Education loans are unsecured loans that can be used to cover expenses related to education, such as tuition fees, books, living expenses, and other such expenses as transportation costs, etc.
5) Is it safe to take an education loan from HDFC Credila and Prodigy Finance?
Yes. It is safe as both are international loan providers and responsible lenders. That’s good news for borrowers as they adhere to the highest financial standards.
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