The rivalry between private and public banks in issuing education loans has always been interesting. It has contributed to the growth of the financial sector and resulted in many students achieving their academic goals. HDFC Credila Vs Bank Of Baroda is a battle between two heavyweights on either side, and this article will clarify which is better between the two.
| Particulars | Bank Of Baroda | HDFC Credila |
| Interest Rates | 8.5% – 13.7% | From 9.50% p.a. |
| Maximum Loan Amount | Up to Rs. 150.00 lakh | Up to Rs.10 lakh |
| Moratorium Period | Course period + 3 Months – 1 Year | Course period + 12 Months |
| Repayment Terms | 10 – 15 years | Up to 15 years |
| Margin Money Charged | Up to 15% | No margin money |
| Processing Fees | Up to 1% of the loan amount | Up to 1% of the loan amount |
Eligibility Criteria
All applicants must meet the stated requirements to be considered for education loan disbursement. This is where you can notice differences between an education loan offered by the Bank of Baroda and one from HDFC Credila. The eligibility criteria to qualify for an education loan from either bank include the following:
| Bank | Eligibility Criteria |
| Bank Of Baroda | -Must be an Indian national -Must secure admission to professional/technical courses abroad | in The Executive Development Programmes offered by premier institutions abroad -Must be and should remain gainfully employed (specific to the loan type) |
| HDFC Credila | -Must be residing in India -Must be between the ages of 16 – 35 years -Must have a co-applicant, e.g., parent/guardian -Must be pursuing a postgraduate degree or postgraduate diploma -Must have attained admission to a reputable institution |
Interest Rates
Interest rates charged on repayment of student loans can attract or dismiss applicants. Students shy away from higher interest rates as it might interfere with their ability to pay their education loans. The difference in interest rates between the Bank of Baroda and HDFC Credila is shown in the table below.
| Bank | Interest Rates |
| HDFC Credila | From 9.50% p.a. |
| Bank of Baroda | 8.5% – 12.2% |
You can utilise a student loan repayment calculator to help you determine the probable interest charged on your education loan.
Processing Fee
Lenders charge processing fees on education loan applications. These costs cover the legal and operational charges necessary for finalising the application. There is an almost identical processing fee for an education loan offered by HDFC Credila Bank and one from Bank of Baroda.
| Bank | Processing Fees |
| HDFC Credila | Up to 1% of the Loan Amount |
| Bank of Baroda | -Up to Rs.7.50 Lakh: NIL-Up to 1% of the Loan Amount (will be refunded after first loan disbursement) |
Maximum Loan Amount
When determining which bank is best, HDFC or Bank of Baroda, consider the loan amounts given by each. With the cost of studying abroad increasing yearly, it is essential to consider a bank that will provide you with high loan amounts. However, loan amounts are influenced by the securities you’ve put in place of your loan.
| Bank | Maximum Loan Amount |
| HDFC Credila | Up to Rs.10 lakh |
| Bank of Baroda | Up to Rs. 150 lakh |
Moratorium Period
Banks expect you to wait to start paying off your loan. You must finish your higher education and get an additional period before the banks begin to request payments. The period of the moratorium on education loans for Bank of Baroda and HDFC Credila is as follows:
| Bank | Moratorium Period |
| HDFC Credila | Course period + 12 Months |
| Bank of Baroda | Course period + 3 to 12 Months |
Margin Money Charged
Margin money is required by lenders, such as Bank of Baroda, who only partially pay for your studies abroad. This is because they only cover specific expenses and need you to cover the rest. However, banks that cover 100% of your studies, like HDFC, don’t require a money margin. Bank of Baroda charges margin money of up to 15% depending on the loan amount.
Repayment Terms
Most banks, whether private or public, have a specific repayment term. Repayment of multiple student loans is tapped at 15 years, although specifications depend on the lender. The Bank of Baroda vs HDFC Credila education loan repayment terms are shown in the table below.
| Bank | Repayment Terms |
| HDFC Credila | -10 years for loans up to 7.5 Lakhs -15 years for loans above 7.5 Lakhs |
| Bank of Baroda | Maximum 10-15 years |
Types Of Collateral
The collateral for securing the Bank of Baroda vs HDFC Credila abroad education loan is addressed differently. Bank of Baroda considers the value of the collateral, while HDFC considers what the collateral is. The table below clarifies the types of collateral required by both banks.
| Bank | Types of Collateral |
| HDFC Credila | -Moveable: HL with HDFC Ltd or Fixed Deposit with HDFC Credila or -Immoveable Collateral: House, Flat, Bungalow, Shop, Land (Non-Agricultural), etc. |
| Bank of Baroda | -No collateral/co-obligation of a parent for specific amounts -Collateral security of 100% of the loan amount for certain loans -Total security coverage should be 1.25 times the loan amount for specific loans |
Countries Each Bank Caters To
Both Bank of Baroda and HDFC Credila are internationally recognised banks operating in various countries. However, specific benefits only apply to Indian residents as the headquarters are in the country.
| Bank | Countries Covered |
| HDFC Credila | UAE, Bahrain, Hong Kong, and Kenya |
| Bank of Baroda | Australia, Malaysia, Thailand, United States, United Kingdom, United Arab Emirates, Zambia, Uganda, Kenya, Tanzania, New Zealand, Botswana, Oman, Singapore, Seychelles, South Africa, Mauritius, Fiji Islands, and Belgium. |
Which Of The Two Is UniCreds’ Partner?
UniCreds can help you get education loans from both banks, provided you have an excellent financial score and bank with the institution. Often, depending on the client, it all comes to specifications when deciding between Bank of Baroda or HDFC Credila is better.
FAQs
Which Bank Is Better, Bank Of Baroda Or HDFC Credila?
Bank of Baroda is better in several aspects.
Which Bank Offers Better Interest Rates For Education Loans, Bank Of Baroda Or HDFC Credila?
BoB has better interest rates.
Can You Compare The Processing Fees For Education Loans At Bank Of Baroda And HDFC Credila?
Both banks have similar processing fees.
What Is The Maximum Loan Amount Offered By the Bank Of Baroda And HDFC Credila For Education Purposes?
Bank of Baroda has a superior maximum loan amount of Rs. 150.00 lakh, whereas HDFC Credila offers a maximum of Rs.10 lakh.
Are There Any Specific Eligibility Criteria That Differ Between Bank Of Baroda And HDFC Credila Education Loans?
There is no significant difference in eligibility criteria, although the Bank of Baroda has different loan packages with specific qualifications.
How Do The Repayment Terms Vary Between Bank Of Baroda And HDFC Credila Education Loans?
Repayment terms for Bank of Baroda vs HDFC Credila education loan are similar.
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