Studying abroad is the ultimate goal for many students due to the quality of education and potential career development opportunities. However, higher education institutions revise tuition fees annually, increasing study abroad costs. While scholarships have proven competitive, Indian students can consider taking education loans from HDFC Credila Vs IDFC First Bank to fund their studies.
| Particular | HDFC Credila | IDFC Bank |
| Interest Rates | From 9.50% p.a. | 10% to 15% p.a. |
| Maximum Loan Amount | Up to Rs.10 lakh | No Limit |
| Moratorium Period | Course period + 12 Months | Course period + 12 Months/ 6 Months after employment |
| Repayment Terms | Up to 15 years | Up to 15 years |
| Processing Fees | Up to 1% of the loan amount | Up to 1.5% of the loan amount |
Eligibility Criteria
It would help if you attained specific eligibility criteria for funding from IDFC Bank and HDFC Credila. Each bank has its requirements, and you must check all the details to ensure you submit your application having met them. This can increase your chances of getting your education loan accepted and disbursed.
| Eligibility Criteria for IDFC Bank and HDFC Credila | |
| HDFC Credila | IDFC Bank Education Loan |
| -Must be an Indian resident -Must be between 16 – 35 years old -Must have a co-applicant for full-time programmes -Must be pursuing postgraduate degree or diploma courses -Must have admission to a reputable institution | -Must be an Indian resident-Must be 18+ years -Must have the pre-admission sanction -Must be enrolled in a higher education institution |
Interest Rates
Interest rates on education loans are among the top determinants of which financial institutions to borrow from. Students often consider the potential interest rates when determining which bank is best, IDFC or HDFC Credila. This is because these are private banks and often have harsh rates.
| Bank | Interest Rates |
| HDFC Credila | From 9.50% p.a. |
| IDFC Bank | 10% to 15% p.a. |
IDFC First Bank education loans have a defined range of interest rates, while HDFC Credila Bank only presents a minimum percentage.
Processing Fees
Processing fees cover the loan procedure from application, screening, acceptance, and disbursement. This is a bank’s income charged for helping students facilitate their education loans. This is one among many other fees charged, such as cancellation, stamping, rescheduling, EMI collection, and check swaps, among additional charges.
| Bank | Processing Fees |
| HDFC Credila | Up to 1% of the Loan Amount |
| IDFC Bank | Up to 1.5% of the Loan Amount |
Maximum Loan Amount
The maximum education loan amount is another significant difference between IDFC Bank and HDFC Credila. It has been crucial for borrowers and students to choose the bank that can give them the required amount for their studies abroad.
| Bank | Maximum Loan Amount |
| HDFC Credila | Up to Rs.10 lakh |
| IDFC Bank | No Limit |
HDFC Credila education loan is only for students who require less as they opt for the no-limit advantage offered by IDFC Bank.
Moratorium Period
The period of moratorium is a grace period given by banks before they start requesting loan repayment instalments. This allows students to complete their studies and get an extra year or so to look for funds before repayment begins. Although there is an identical moratorium period for IDFC Bank vs HDFC Credila abroad education loans, the terms are slightly altered.
| Bank | Moratorium Period |
| HDFC Credila | Course period + 12 Months |
| IDFC Bank | Course period + 12 Months/ 6 Months after employment |
Margin Money Charged
Private banks often give secured education loans. This means that you have to provide collateral to get the funding option. The margin money is the down payment made towards the total loan cost. IDFC Bank and HDFC Credila offer 100% financing to students pursuing higher education abroad. This means that a margin is not required for such loans.
Repayment Terms
One crucial factor, when you want to repay education loans, is to consider the repayment terms given. These are terms within which you must fully pay your education loan to avoid any penalties. There’s no difference between IDFC Bank vs HDFC Credila education loans as they both have a repayment term of 15 years with slight differences.
| Bank | Repayment Terms |
| HDFC Credila | -10 years for loans up to 7.5 Lakhs -15 years for loans above 7.5 Lakhs |
| IDFC Bank | Up to 15 years |
Types Of Collateral
Collateral is essential for secured loans; you have to provide valid collateral to get an education loan from either bank. This will guarantee that you can afford to repay the loan; if you still need to, you’ve provided something in place of your loan in case of default. The collaterals for HDFC Credila vs IDFC First Bank include:
| 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. |
| IDFC Bank | -Collateral-free loans up to INR 50 lakhs -Applicable collateral for loans above INR 50 lakhs |
Countries Each Bank Caters To
IDFC Bank operates in various countries, including India, the US, the UK, Canada, Singapore, UAE, Australia, Saudi Arabia, Qatar, Oman, Bahrain, etc. On the other hand, HDFC Credila operates in countries such as UAE, Bahrain, Hong Kong, and Kenya.
Which Of The Two Is UniCreds’ Partner?
UniCreds has partnered with both IDFC First Bank as well as HDFC Credila. A student looking for an education loan can come to us and understand the process in minutes. Your formalities will all be carried out by the representatives of UniCreds, helping you stay stress-free about your future education.
FAQs
1. Which Bank Is Better, IDFC Bank Or HDFC Credila?
This is subjective depending on specific student needs.
2. Which Bank Offers Better Interest Rates For Education Loans, IDFC Bank Or HDFC Credila?
HDFC Credila offers better interest rates from as low as 9.5% p.a.
3. Can You Compare The Processing Fees For Education Loans At IDFC Bank And HDFC Credila?
IDFC Bank has higher processing fees.
4. What Is The Maximum Loan Amount Offered By IDFC Bank And HDFC Credila For Education Purposes?
HDFC Credila offers education loans of up to Rs.10 lakh, but there’s no limit for IDFC Bank.
5. Are there Any Specific Eligibility Criteria That Differ Between IDFC Bank And HDFC Credila Education Loans?
The only significant difference in the eligibility criteria is the qualifying age, with HDFC Credila offering loans to applicants of 16 – 35 years, and IDFC Bank has a minimum bracket of 18 years.
6. How Do The Repayment Terms Vary Between IDFC Bank And HDFC Credila Education Loans?
Both repayment terms are 15 years old, but HDFC Credila adds the loan amount element.
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