HDFC Credila Vs SBI Bank Education Loan 

Ready to kickstart your higher education journey but stuck on choosing the right bank for an educational loan for higher studies in India? Don’t worry! HDFC Credila and SBI Banks are in the ring, and we’re here to help you decide. This blog breaks down the nitty-gritty of HDFC Credila Vs SBI Bank education loans, making it easy to pick the one that fits your academic dreams. Let’s dive into the details.

Key Takeaways- 

• Education loans in India are a helpful aid for students seeking quality education.
• To avail of an education loan, the applicant must follow a certain application process. 

HDFC Credila VS SBI Bank Education Loan Key Comparisons: 

• HDFC offers education loans up to Rs. 150 lakhs, while SBI extends up to Rs. 50 lakhs.
• HDFC’s interest rate is 9.50% p.a., compared to SBI’s range of 8.15% to 11.15%.
• Collateral is required for HDFC loans above Rs. 7.5 lakhs, while SBI doesn’t mandate it up to this limit.
• HDFC provides a 15-year repayment period with a moratorium, while SBI offers a grace period for courses lasting over six months. 
• The preference between HDFC Vs SBI banks for an educational loan depends on individual circumstances and priorities.

1. Understanding Education Loans In India 

The cost of education in India is rising each day, making it difficult for students to afford quality education. At such times, educational loans come to the rescue. 

An educational loan in India is a financial aid provided by banks and other financial institutions to help students pursue higher education. It covers tuition fees, examination fees, accommodation charges, purchase of books and equipment, and travel expenses. The loan amount can vary depending on the course, institution, and the student’s financial needs. 

1.1 The Process Of Getting An Education Loan In India

The process of getting an educational loan in India typically involves the following steps:

1. Choose a bank or financial institution: Conduct thorough research to compare interest rates, terms, and conditions offered by different banks.

Check eligibility criteria: Ensure you meet the eligibility requirements, which generally include- 

• Indian citizenship
• Age requirements (usually 16 years or above),
• Admission to a recognised institution
• A good academic record

2. Collect required documents: Gather all essential documents, including- 

• Proof of identity and address
• Proof of Income
• College/School Admission letter
• Mark sheets
• Collateral security (if applicable)

3. Fill out the application form: Download the application form from the bank’s website or visit a branch to obtain it. Complete the form accurately and attach all required documents.

4. Submit the application form: Submit the completed application form along with the necessary documents to the selected bank branch.

5. Document verification and processing: The bank will verify the submitted documents and assess your application. They may require additional information or clarifications if needed.

6. Loan approval and sanction: Upon successful verification and evaluation, the bank will approve the loan and sanction the agreed-upon amount.

7. Loan disbursement: The sanctioned loan amount will be disbursed to the student or their authorised representative.

8. Moratorium and repayment: Repayment typically begins after a moratorium period, usually six months to a year after course completion. The repayment tenure can vary but generally extends up to 15 years.

Education loans in India play a crucial role in empowering students from diverse backgrounds to pursue higher education and achieve their academic dreams. With various banks and financial institutions offering competitive interest rates, flexible repayment options, and tailored schemes for specific courses and institutions, students have ample opportunities to secure financial assistance for their educational goals. 

Let’s delve into the specifics of HDFC Credila’s educational loan in the next section. 

2. HDFC Credila Education Loan 

HDFC Credila is a leading financial institution in India that offers a comprehensive range of educational loans to support students pursuing higher education both within India and abroad. Their educational loan schemes are designed to cater to the diverse needs of students, offering flexible repayment options, attractive interest rates, and a seamless application process.  

2.1 HDFC Ctedila Education Loan Eligibility Criteria

Following are the eligibility criteria for HDFC educational loan- 

• Applicants must be Indian residents falling within the age bracket of 16 to 35. 

• For all full-time programmes, having a co-applicant is mandatory. The co-applicant can be a parent, guardian, spouse, or parent-in-law. 

• To be eligible, the student must have successfully gained admission to a higher education programme in recognised institutions in India or abroad. This admission should be secured through an Entrance Test or Merit-Based Selection process. 

• Approved courses leading to graduate or postgraduate degrees and PG diplomas offered by recognised colleges/universities endorsed by UGC, Government, AICTE, AIBMS, ICMR, etc., are covered under this loan scheme. 

2.2 Interest Rates And Other Charges Applicable On HDFC Credila Education Loans

The table below summarises detailed information about the HDFC Credila educational loan interest rates and applicable charges. 

2.3 Features of HDFC Credila Education Loan

• You can secure an education loan of up to Rs. 150 lakhs with flexible options. For selected institutes, you can avail of loans of up to Rs. 50 lakhs without the need for collateral. 

• Benefit from preferential interest rates when pursuing courses in top-ranked colleges and universities. The bank offers a repayment period of up to 15 years. The “Moratorium” period is defined as the Educational Course Period plus one year or six months after securing employment, whichever comes earlier. 

• You can choose from a wide range of collateral options, including Residential Property, HDFC Credila Fixed Deposit, Debt Mutual Funds, Insurance Policies, and NSC / KVP. 
• It also offers a transparent process with no hidden charges, accompanied by minimal and straightforward documentation.

•  The loan amount is directly disbursed to the institution based on its fee structure.

With competitive interest rates, flexible repayment options, and a wide range of eligibility criteria, HDFC Credila empowers students from diverse backgrounds to pursue their academic goals without financial constraints. 

In the next section, we will discuss the SBI education loan in detail.

3. SBI Education Loan 

SBI, a prominent Indian financial institution, provides extensive education loan options for students pursuing higher studies in India and overseas. With flexible repayment, attractive interest rates, and a user-friendly application process, SBI caters to diverse student needs. 

3.1 SBI Education Loan Eligibility Criteria

The following are the eligibility criteria for an SBI education loan- 

• The applicant should be a resident of India and should fall in the age bracket of 18-35 years.  

• The educational loan should be fresh. 

• The student should have secured admission to the preferred educational course. 

3.2 Interest Rates And Other Charges Applicable On SBI Education Loan

The table below summarises detailed information about the SBI bank education loan interest rates and applicable charges.

3.3 Features Of SBI Education Loan 

• The maximum loan limit extends up to Rs. 50 lakh.

• UGC/AICTE/IMC/Government-approved graduate, post-graduate, and diploma courses, including those from prestigious institutions like IITs and IIMs, are covered in this loan scheme. Government-approved teacher’s training, nursing, and aviation or shipping courses are also considered.

• No collateral or third-party guarantee is needed for loans exceeding Rs. 7.5 lakh. For loans up to Rs. 7.5 lakhs, a co-borrower (parent or guardian) is required, with no need for collateral. For amounts exceeding Rs. 7.5 lakhs, collateral is mandatory, and a parent or guardian serves as the co-borrower.

• A grace period is applicable for courses lasting over six months, allowing deferred payments until after completion. A 15-year repayment period is then allotted.

 4. SBI Bank Vs. HDFC Credila Education Loan Application Process

• Check your eligibility 

• Collect your documents

• Submit your application

1. If applying online:

1. Create an account on the SBI/HDFC website.
2. Upload your documents.

      b) If applying offline:

1. Visit your nearest SBI/HDFC branch.
2. Submit your application in person.
3. Pay the application processing fee.

• The bank will verify your documents and assess your application.

• If your application is approved, you will receive a sanction letter.

• If your application is rejected, you will receive a rejection letter. 

• Once you receive the sanction letter, you will be required to sign a loan agreement.

• The sanctioned loan amount will be disbursed to you or your authorised representative.

 5. HDFC Vs. SBI Education Loan: Which One Is Better? 

The preference between HDFC Credila Vs SBI bank for an educational loan depends on individual circumstances and priorities. 

HDFC may be favoured for its competitive interest rates and customer service, while SBI stands out for its extensive reach and government-backed schemes.  

Prospective borrowers should carefully assess each bank’s terms, interest rates, and repayment options, considering their unique financial needs and preferences to make an informed decision. 

FAQs 

1. Since there is a moratorium period for SBI student loans, how will my repayments be determined? 

The accrued interest during the moratorium period will be combined with the loan amount when the repayment begins. The Equated Monthly Installment (EMI) will then be calculated based on this combined amount at the commencement of the repayment period.

2. How long does HDFC take to approve educational loans?

It takes about 15 days for the loan approval and disbursement. 

3. What is the ideal CIBIL Score for HDFC Credila Vs. SBI Bank education loans?

The minimum CIBIL Score of your co-borrower for an education loan should be 650 and above 700 for SBI and HDFC, respectively. 

4. What is the maximum repayment period of HDFC Credila Vs. SBI Bank education loans? 

You can repay your SBI and HDFC student loan in 15 years. 

Thank you for taking an interest in reading HDFC Vs. SBI bank education loan . Do check out our other blogs –

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