HDFC Credila, the education financing arm of HDFC Bank, stands out as a reliable choice for Indian students pursuing higher studies abroad. HDFC Credila has garnered recognition for its seamless services and student-friendly offerings. On the other hand, Union Bank of India, tracing its roots back to 1919 as a limited company before nationalisation in 1969, has established itself as a prominent player in the banking sector. In this blog, we delve deeper into the HDFC Credila Vs. Union Bank of India education Loan offerings, exploring their features, eligibility criteria, and unique benefits.
Difference Between HDFC Credila Vs Union Bank Of India Education Loan
Union Bank of India and HDFC Credila offer both secured and unsecured loans. However, both differ in terms of many key features like interest rates, loan upper limits, repayment terms, and processing fees.
Let’s understand these key differences from the table given below:
| Key Features | HDFC Credila Education Loan | Union Bank Of India Education Loan |
| Loan Upper Limit | Rs. 1.5 Cr. | Rs. 1.5 Cr |
| Interest Rates | 11-12.5% | 9.85% |
| Processing Fees | 0.75-1%+ GST | NIL |
| Moratorium Period | Course period + 1 Year | Course period + 1 Year |
| Repayment Period | 15 years | 15 years |
| Collateral Requirement | Residential Flat, Residential House, Non-Agricultural Land, A Fixed Deposit, assigned in favour of Credila | Residential property, non-agricultural land, fixed deposit, etc. |
| Co-Applicant Requirement | Parents/Siblings | Parent/Siblings |
Eligibility Criteria For HDFC Credila Vs. Union Bank Of India Education Loan
Before choosing an education loan provider, it’s essential to understand the eligibility criteria set forth by different lenders. Below is a comparative analysis of the eligibility requirements for education loans offered by HDFC Credila and Union Bank of India:
HDFC Credila Education Loan Eligibility Criteria
There are a few eligibility requirements you must consider in terms of courses and universities at HDFC Credila. The table given below gives an in-depth look into these terms:
| Eligibility Criteria | HDFC Credila Education Loan |
| Nationality | Indian citizen |
| Age | 18 years or above |
| Enrollment Status | Full-time student |
| Recognised Institution | Yes |
| Co-borrower Requirement | Yes |
| Co-borrower Nationality | Indian citizen |
| Co-borrower Relationship | Immediate family members and certain extended relatives (father, mother, brother, sister, spouse, father-in-law, mother-in-law, sister-in-law, brother-in-law, maternal or paternal uncle or aunt, grandparents, first cousins) |
| Co-borrower Income Source | India-based income |
| Co-borrower Bank Account | Indian bank account |
| Eligible Courses | Full-time courses from recognised colleges and universities in various countries, including the USA, Canada, the UK, Germany, Australia, Singapore, France, among others |
| Eligible Countries | Over 35+ countries worldwide including the USA, Canada, the UK, Germany, Australia, Singapore, France, among others |
Union Bank Of India Education Loan Eligibility Criteria
Understanding the eligibility criteria for an education loan is crucial for prospective borrowers seeking financial assistance. Below is a comprehensive overview of the eligibility requirements set forth by Union Bank of India for their education loans. These criteria cover aspects such as the student’s nationality, admission status, age requirements, co-applicant obligations, and the types of courses covered both in India and abroad.
| Eligibility Criteria | Union Bank of India Education Loan |
| Student Nationality | Indian citizenship is required. |
| Admission Status | Must have secured admission in India or abroad for higher, professional, or technical education, following the appropriate selection process and clearing any qualifying examinations. |
| NRI Student Criteria | NRI students must hold Indian Passport and have secured admission for studies in India. |
| Student Age | There are no restrictions on the minimum or maximum age of the student. |
| Co-applicant Requirement | Parent(s) of the student must compulsorily join as co-applicant. For married individuals, the co-applicant can be the spouse, parent(s), or parent(s)-in-law. In cases where both parents are deceased, a close relative or guardian can act as a co-applicant. |
| Co-applicant Nationality | Co-applicant must be an Indian national. |
| Eligible Courses (India) | – Graduation, post-graduation, and diploma courses from recognised universities. – Technical, professional, and management courses. – PhD courses. |
| Eligible Courses (Abroad) | – Graduation and post-graduation degrees from recognised universities. – Certified degree courses conducted by institutions such as CIMA, London, CPA, USA, and others. – PhD courses. Diploma courses abroad are not covered. |
Documents Required For HDFC Credila & Union Bank Of India Abroad Education Loan
Given below is the general list of documents required for HDFC Credila and Union Bank of India education loan. You must consider reaching out to the bank for any additional documents required from your end in special circumstances.
Application Process For HDFC Credila & Union Bank Of India Education Loan Through UniCreds
Getting the right education loan from HDFC Credila or Union Bank of India is now super easy with UniCreds. With UniCreds, getting your education loan sorted with HDFC Credila or Union Bank of India is a breeze. Just follow these simple steps:
Step 1: Visit the UniCreds website and fill out a quick form with your basic details.
Step 2: Our friendly loan advisor will give you a call to understand what kind of loan you need.
Step 3: We’ll offer you a bunch of loan options that fit your needs and budget.
Step 4: We’ll tell you exactly what personal documents along with the documents you need to provide.
Step 5: Sit tight and wait for your loan to be approved in no time!
HDFC Credila Vs. Union Bank Of India Abroad Education Loan Repayment Process
HDFC Credila is an NBFC whereas Union Bank Of India is a bank. Hence, their student loan repayment process might vary in a lot of ways. You, as a borrower, must know these repayment terms for a sought after financial planning and repayment process:
HDFC Credila Repayment Terms
HDFC Credila repayment terms are straightforward and in the favour of the students. Go through the points mentioned below:
Certainly, here it is presented in points format with simplified language:
- With HDFC Credila’s Loan For Foreign Education, you get a moratorium or a grace period where you don’t have to repay anything. This period lasts for your entire course duration plus an extra 12 months afterward.
- Once the student loan moratorium is over, you’ll need to start making monthly payments towards your loan.
- The loan term can last for as long as 14 years, giving you a flexible timeframe to pay back the loan.
Union Bank Of India Education Loan Repayment Terms
Given below are the important repayment terms for the Union Bank of India education loan. Go through them thoroughly to understand your repayment plan.
- Once your education loan gets approved, you don’t need to start paying it back until after you finish your course, plus an extra 12 months. This time when you don’t have to make payments is called a moratorium.
- Even though you don’t have to pay interest during the moratorium, you can choose to pay if you want to and get a discount on the interest.
- Union Bank of India gives you up to 15 years (that’s 180 months) to repay your study abroad education loan.
Which Bank Is The Best HDFC Credila Or Union Bank Of India?
Based on the table given for the key features, Union Bank of India presents a more favourable option for an education loan compared to HDFC Credila. Union Bank of India offers a lower interest rate on education loans of 9.85%, no processing fees, and similar moratorium and repayment periods. While both banks have comparable loan upper limits, collateral requirements, and co-applicant criteria, the cost-saving benefits and competitive interest rate of Union Bank of India make it a more financially advantageous choice for borrowers seeking an education loan.
FAQs
1. HDFC Credila Or Union Bank of India, Which bank is better?
Based on the provided comparison, Union Bank of India offers more favourable terms for an education loan compared to HDFC Credila.
2. Which bank offers better interest rates for education loans, Union Bank of India or HDFC Credila?
Union Bank of India offers better interest rates for education loans, with rates starting from 9.85%, compared to HDFC Credila, which offers rates ranging from 11 to 12.5%.
3. Can you compare the processing fees for education loans at union bank of India and HDFC Credila?
Union Bank of India does not charge any processing fees for education loans, whereas HDFC Credila charges 0.75-1% plus GST.
4. What is the maximum loan amount offered by union bank of india and HDFC Credila for education purposes?
Union Bank of India and HDFC Credila both offer a maximum loan amount of Rs. 1.5 crore for education purposes.
5. Are there any specific eligibility criteria that differ between the Union Bank of India and HDFC Credila education loans?
While both Union Bank of India and HDFC Credila have similar eligibility criteria such as requiring parents or siblings as co-applicants, collateral requirements, and moratorium periods, specific details may differ based on individual circumstances and loan products.
6. How do the repayment terms vary between a Union Bank of India and HDFC Credila education loans?
Repayment terms for Union Bank of India and HDFC Credila education loans are generally similar, with both offering a repayment period of up to 15 years and a moratorium period of course duration plus 1 year.
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