HDFC Credila and IDFC First Bank are the most favoured lenders for an education loan, especially for abroad studies. Both of them offer higher loan amounts, attractive interest rates, affordable processing fees, and flexible repayment tenure. You can apply for your preferred courses in your ideal country. With all these advantages, deciding the best education loan provider for you can seem challenging. To know the best option among HDFC Credila and IDFC First Bank, read this blog.
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Overview of HDFC Credila Education Loan
HDFC Credila is an NBFC (full-form- Non-Banking Financial Company) in India offering education loans to aspiring students. You can apply for loans for higher studies in more than 63 countries, 4,600+ colleges, and 3,300+ courses. It covers 100% of costs, including tuition fees and living expenses.
You must have confirmed admission to the university abroad before the disbursement of the loan amount. The loan amount is disbursed directly to the university in instalments as per the semester fee requirements. You can avail of tax benefits on interest paid on education loans under Section 80E of the Income Tax Act.
The education loan from HDFC Credila can be repaid in up to 15 years. The repayment tenure is considered as the Duration of Study + Grace Period after the Study + Repayment Period. HDFC Credila education loan repayment is done via EMIs, which are deducted using the ECS (Electric Clearance Service) directly from the bank account of the borrower.
Unlike other lenders, HDFC Credila does not require margin money for education loans. You can apply online. Their easy application process and minimal documentation ensure a hassle-free process with no hidden charges.
Also Read: Check here all the major details about Prodigy Finance Education Loan to Study Abroad.
Overview of IDFC First Bank Education Loan
IDFC First Bank is a private bank in India that offers personalised education loans based on student’s needs and requirements. The loans are available for 30,000+ courses across 4,000+ universities globally.
The interest rates on IDFC First Bank education loans are competitive. If you have
An existing education loan from another lender, IDFC First Bank allows a transfer of such loans at 1% lower interest rates. The loan can easily be repaid in 15 years if you follow an effective plan for IDFC First Bank EMI payment for education loans.
The loan covers travel expenses, purchase of laptop/books/uniform, insurance costs etc. Besides, you can benefit from the income tax rebate on education loans under Section 80E. You can easily apply online and offline.
The best part of taking an education loan from IDFC First Bank is the access to their First UNI app which provides significant support. You can explore colleges, courses, and scholarships across countries along with SOP writing and resume-building counselling.
Comparing Education Loans from HDFC Credila and IDFC First Bank
Both the lenders, HDFC Credila and IDFC First Bank offer multiple benefits when taking an education loan from them. Both provide an easy online application process and minimal documentation. The eligibility criteria are also simple. Let’s compare various factors including interest rates, loan amounts, processing fees, repayment terms, and additional features.
| Features | HDFC Credila | IDFC First Bank |
| Loan Amount | No Upper Limit on secured loans and up to INR 75 lakhs without collateral | Up to INR 2 crores with collateral and up to INR 75 lakhs without collateral |
| Interest Rate | 14% p.a onwards | 9.50% p.a onwards |
| Processing Fee | Varies; 1% – 1.25% of the loan amount | Up to 1.5% of the loan amount |
| Loan Tenure | Up to 15 years (including study and grace period) | Up to 15 years (including study and grace period) |
| Margin Money | NIL | 5 to 15% of the loan amount |
| Repayment During Study | Simple interest or partial interest options are available | Simple interest during the course duration |
| Coverage of Expenses | Covers tuition fees, living expenses, travel costs, exam fees, etc. | Covers tuition fees, accommodation, and other educational expenses |
| Eligible Courses | All approved top-notch courses from foreign university | Courses across graduation and post-graduation degrees, including full-time technical and professional courses and part-time executive, vocational, and diploma courses |
Also Read: Planning to pursue a career in medicine and surgery abroad? Check here all about Education Loan for MBBS.
HDFC Credila vs IDFC First Bank: The Best Education Loan Provider?
Choosing between HDFC Credila and IDFC First Bank depends on individual circumstances such as the desired loan amount, the importance of interest rates, and specific financial needs.
For students prioritizing lower interest rates and processing fees, IDFC First Bank may be the better option. Besides, the bank offers more guidance related to study abroad matters with their First UNI app. However, for those seeking tailored solutions and extensive coverage of educational expenses, HDFC Credila could be more beneficial. Their disbursement process is extremely smooth, ensuring hassle-free transfers.
- Interest Rates: HDFC Credila’s interest rates are higher compared to IDFC First Bank, which may be a significant factor for students concerned about long-term repayment costs.
- Loan Amounts: Both providers offer substantial loan amounts, but HDFC Credila allows for higher limits when collateral is provided.
- Processing Fees: HDFC Credila has a more transparent fee structure with lower processing fees compared to IDFC First Bank education loans.
- Repayment Flexibility: Both institutions offer flexible repayment options, but HDFC Credila’s customized solutions may appeal more to students with specific needs.
- Coverage of Expenses: Both lenders cover a wide range of educational expenses, making them suitable for comprehensive financial support during studies abroad.
This was all about comparing education loans from HDFC Credila and IDFC First Bank. It’s advisable for students to carefully evaluate their requirements and consider the given factors to choose the lender that suits their financial needs.
To learn more about education loans, the best bank accounts for students, forex, and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs
HDFC Credila offers secured loans with no upper limit and up to INT 75 lakh for unsecured loans, while IDFC First Bank provides up to INR 2 crores with collateral and INR 75 lakh without collateral.
HDFC Credila’s interest rates start around 14% p.a., while IDFC First Bank’s rates start from 9.59% p.a., making IDFC First Bank generally more competitive.
HDFC Credila charges up to 1% to 1.25% of the loan amount, while IDFC First Bank’s processing fee is 1.5% of the loan amount.
Yes. Both lenders offer collateral-free education loans up to INR 75 lakhs.
Students can apply for education loans online through the respective bank websites or platforms like Fly Finance.
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