In India, two prominent players in the education loan market are HDFC Credila and MPower Finance. Both lenders offer student loan products designed to cater to the diverse needs of students pursuing higher education in India or abroad. However, their offerings differ in terms of eligibility criteria, interest rates, repayment options, and additional benefits. In this blog post, we will learn about the key features of HDFC Credila Vs. MPower Financing education loans.
Difference Between HDFC Credila Vs. MPower Financing Education Loans Key Features
HDFC Credila helps students in India finance their education dreams with customised loans, including pre-approval before applying to universities. On the other hand, MPOWER Financing education loan is great for studying abroad in the USA or Canada, offering loans without needing collateral or a co-applicant, and with reasonable interest rates. Given below are the key comparisons of both the lenders worth knowing about:
| HDFC Credila Vs. MPower Financing Education Loan Overview | ||
| Key Features | HDFC Credila | MPower Financing |
| Loan Upper Limit | Rs. 1.5 Cr | $1 Lakh for USA$50 Thousand for Canada |
| Interest Rates | 11-13% | 13% |
| Processing Fees | 0.5 – 1% of the loan amount | 5% of the loan amount |
| Margin Money | No margin money required | No margin money required |
| Moratorium Period | Education course duration + 1 year grace period | Course duration + 6 months partial simple interest needs to be paid |
| Repayment Period | Max 12 years | 10 years |
| Co-Applicant Requirement | Parents/Legal guardian | Not Required |
| Collateral Requirement | Residential Flat, Residential House, Non-Agricultural Land, A Fixed Deposit, assigned in favour of Credila | Not Required |
Eligibility Criteria For HDFC Credila Vs. MPower Financing Abroad Education Loans
As MPower Financing and HDFC Credila education loans differ in terms of collaterals, co-applicant, and eligible country requirements, it is important to understand both of their eligibility terms separately. In this section, we will have a deeper look at their respective requirements:
HDFC Credila Education Loan Eligibility Criteria
Given below are the eligibility requirements for HDFC Credila education loan that you must know:
| Eligibility Aspect | Description |
For the Borrower | The student applying for the education loan must be an Indian citizen, aged 18 or above, and enrolled full time in a recognised institution. |
For the Co-borrower | A co-borrower residing in India with a verifiable income must co-sign the loan Co-borrowers must have an active bank account in India and be Indian citizens. They should provide proof of income earned in India. |
Eligible Courses | HDFC Credila offers loans for full-time courses at recognised colleges and universities worldwide, including countries like the USA, UK, Canada, Singapore, etc. |
Eligible Countries | Loans are available for studies in over 35 countries, including the USA, Canada, UK, Germany, Australia, Singapore, and France, among others. |
Eligibility Criteria For MPower Financing Education Loan
The table given below consists of a deeper look into the MPower Financing education loans. Many people are interested in the eligibility terms since MPower loans do not require a co-applicant.
| Eligibility Aspect | Description |
| Eligible Course | MPOWER student loans are available for both undergraduate and graduate students nearing graduation within two years or preparing for 1- or 2-year programmes. |
| Eligible Applicants | These loans are also open to US residents, including DACA recipients, refugees, and asylum-seekers. |
| Eligible Universities and Countries | Applicants must be accepted or currently enrolled in one of the 400+ approved universities in the United States or Canada. |
Documents Required For HDFC Credila Vs. MPower Finance Education Loans
To apply for HDFC Credila and MPower Financing education loans, several documents are typically required to verify the applicant’s credentials and ensure compliance with lending regulations. Below is a table outlining the common documents requested by both financial institutions:
| Document | Description |
| Proof of Identity | Valid passport, Aadhaar card, PAN card, voter ID, or driver’s licence. |
| Proof of Address | Aadhaar card, utility bills (electricity, water, gas), ration card, or rental agreement. |
| Admission Letter | Official confirmation of admission from the educational institution. |
| Fee Structure | Detailed breakdown of the tuition fees and other expenses associated with the chosen course. |
| Academic Records | Mark sheets, transcripts, or certificates from previous academic qualifications. |
| Income Proof (Borrower and Co-signer) | Salary slips, income tax returns, or bank statements to demonstrate the financial capability to repay the loan. |
| Collateral Documents (if applicable) | Property documents, land deeds, or any other assets pledged as collateral for the loan. |
| Passport Size Photographs | Recent passport-sized photographs of the applicant and co-signer. |
| Co-signer’s KYC Documents | Similar identity and address proofs as required for the borrower. |
| Any Other Documents | Additional documents as requested by the lending institution, such as co-signer’s employment verification letter or a statement of purpose for the loan. |
Application Process For HDFC Credila & MPower Education Loans
UniCreds is here to help you start your education loan application once you’ve confirmed your eligibility. You can verify your eligibility online or request a callback from our knowledgeable loan advisors. Depending on your situation, our experts can guide you through securing a loan from either Credila or MPower, with or without collateral.
Follow these steps:
- Step 1: Visit UniCreds and fill out the form to let us know more about you.
- Step 2: You’ll receive a call from our loan experts to discuss your financial needs, potential collateral types, and loan requirements. Provide details like your university, course, and loan amount needed.
- Step 3: We’ll present you with customised loan options from top Indian financial institutions like HDFC Credila, Bank of Baroda, Auxilo, and Ascent, MPower Financing, etc.
- Step 4: Once you’ve decided on a lender after knowing the education loan margin, we’ll provide you with a tailored list of document requirements based on your eligibility.
- Step 5: Submit the documents along with the loan application form and await quicker approval with lower processing fees.
UniCreds doesn’t charge any fees throughout the process. We’re here to support you for a smooth and contactless education loan approval!
Repayment Process For HDFC Credila Vs. MPower Education Loans
Both the banks have different repayment of education loan terms which you need to understand as a study abroad student. As both the banks cater to different applicant bases, universities, and courses, it’s important to understand the repayment considerations to plan your finances well. Given below are the repayment terms of both the banks separately.
HDFC Credila Education Loan Repayment Process
Given below are some of the repayment terms of HDFC Credila Education Loans you must know and follow:
- Loan interest repayment begins promptly following the loan disbursement.
- The overall duration of the education loan consists of the study period, education loan moratorium period post-completion, and repayment period.
- HDFC Credila provides a maximum repayment tenure of 12 years for the loan.
- HDFC Credila recommends maintaining a buffer of at least three months before the commencement of loan payments.
- Payment options include making additional payments, paying while still in school, and making partial payments.
MPower Finance Education Loan Repayment Process
Mentioned below are the significant repayment terms of MPower Financing education loan that you must consider while finalising your lender:
- MPOWER offers a moratorium or grace period during which loan repayments are not compulsory throughout the duration of the course and an additional six months after graduation.
- During this period, students can choose to repay the accrued interest on the loan and may be eligible for discounts.
- After the moratorium period, monthly repayments to MPOWER begin, with borrowers having up to 10 years to repay the loan.
- Importantly, there is no prepayment penalty, enabling borrowers to settle the loan early without facing any additional charges.
MPower Financing Or HDFC Credila Which Is Better?
Based on the comparison, the better option between HDFC Credila and MPOWER Financing depends on individual preferences, funding needs, and eligibility criteria. Students seeking higher loan amounts, longer repayment periods, and flexible collateral options may prefer HDFC Credila.
On the other hand, students looking for lower processing fees, no co-applicant requirement, and no collateral may find MPOWER Financing more suitable. Ultimately, it’s essential for students to carefully assess their financial situation and loan requirements before deciding on the most suitable option for their education financing needs.
FAQs
Q1. Which bank is better: HDFC Credila or MPower Financing?
The better option depends on individual preferences and circumstances. HDFC Credila may be suitable for higher loan amounts and longer repayment periods, while MPOWER Financing offers lower processing fees and no co-applicant or collateral requirements.
Q2. Which bank offers better interest rates for education loans, MPower financing or HDFC Credila?
HDFC Credila generally offers lower interest rates ranging from 11 to 13% for education loans, compared to the fixed rate of 13% offered by MPOWER Financing.
Q3. Can you compare the processing fees for education loans at Mpower financing and HDFC Credila?
HDFC Credila charges processing fees ranging from 0.5% to 1% of the loan amount and MPOWER Financing imposes a processing fee of 5% of the loan amount.
Q4. What is the maximum loan amount offered by MPower financing and HDFC Credila for education purposes?
HDFC Credila offers a maximum loan amount of Rs. 1.5 Crore, while MPOWER Financing provides $1 Lakh for the USA and $50 Thousand for Canada for education purposes.
Q5. Are there any specific eligibility criteria that differ between MPower financing and HDFC Credila education loans?
Yes, HDFC Credila requires a co-applicant (usually parents or legal guardians), while MPOWER Financing does not require a co-applicant.
Q6. How do the repayment terms vary between MPower financing and HDFC Credila education loans?
The repayment terms differ as HDFC Credila offers a maximum repayment period of 12 years with a moratorium period of course duration plus 1 year, while MPOWER Financing provides a 10-year repayment period with a moratorium period of course duration plus 6 months.
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