HDFC Credila is one of the best NBFC (Non-Banking Financial Institutions) known for providing education loans to study abroad. Students can get secured and unsecured education loans from HDFC Credila at affordable interest rates.
Union Bank of India is one of India’s leading public sector banks that provides education loans to study abroad under its Union Education Premier abroad scheme. You can get unsecured loans of up to INR 40 lakhs. Let’s compare and understand which education loan suits you and why you should take it.
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HDFC Credila Education Loan: Major Features
One of the best features of the HDFC Credila education loan is that you can get a loan of up to INR 80 lakhs without providing any collateral security. The loan amount covers up to 100% of the expenses related to the study and accommodation abroad. Check the major features of the HDFC Credila Education Loan below:
| HDFC Credila Education Loan | Major Features |
| Maximum Loan Amount | As per the requirement subject to repayment capacity |
| Rate of Interest | 10.5% to 14% |
| Repayment Period | Up to 12 years |
| Collateral Requirements | No collateral is required for loans up to INR 80 lakhs. |
| Courses Eligible | All top-notch courses |
| Eligibility Criteria | – Must be an Indian citizen and at least 18 years old – Admission to a foreign university is required – The co-applicant needs to have a bank account with check-writing capabilities |
Also Read: Check here all the major details about Prodigy Finance Education Loan to Study Abroad
Union Bank Education Loan: Major Features
Union Bank is one of the oldest government banks in India founded on Nov 11, 1919. The bank offers education loans to study abroad at affordable interest rates. You can apply for the loan on the Union Bank Vidya Lakshmi education loan portal. Check the major features of Union Bank education loans below:
| Union Bank Education Loan | Major Features |
| Maximum Loan Amount | Based on Requirements (usually INR 1.5 crore) |
| Rate of Interest | Starting from 8.80% |
| Repayment Period | Up to 15 years |
| Margin Money | – No Margin Money up to INR 4 lakh – 15% margin money for loans above INR 4 lakh |
| Collateral Requirements | No collateral is required for loans up to INR 40 lakhs |
| Processing Fee | NA |
| Foreclosure Charge | NA |
Difference between HDFC Credila and Union Bank Education Loan
HDFC Credila and Union Bank Education Loans differ primarily in their offerings. HDFC Credila is a specialised education loan provider focusing solely on education financing, offering loan solutions with flexible repayment options of up to 12 years. There is no upper limit on the loan amount. On the other hand, the Union Bank of India offers education loans as part of its broader banking services with lower interest rates starting from 8.80%. Since it is a government bank, eligibility criteria are a bit strict. Check the major differences between HDFC Credila and Union Bank education loans below:
| HDFC Credila Education Loan | Union Bank Education Loan |
| Collateral-free loans up to INR 80 lakhs | Collateral-free loans up to INR 40 lakhs |
| Higher Interest Rate starting from 10.50% | Low Interest Rate starting from 8.80% |
| Up to 12 years repayment period | Up to 15 years repayment period |
| The loan can be applied through the official website of HDFC Credila | The loan can be applied through the Vidya Lakshmi Portal |
Also Read: Planning to pursue a career in medicine and surgery abroad? Check here all about Education Loan for MBBS
Important Guidelines for Students
Union Bank and HDFC Credila both are renowned financial institutions that provide education loans. Students can make a more informed decision between HDFC Credila and Union Bank education loans, depending on their specific needs and financial situations by understanding some important guidelines below:
- You must compare the terms and conditions of the education loan offered by both HDFC Credila and Union Bank
- Check the interest rates offered by both lenders and choose the one that suits your requirements
- If you want to take advantage of the government subsidies, then you must choose Union Bank of India for an education loan
These were some of the major differences between HDFC Credila and Union Bank education loans to study abroad. Check some common FAQs based on the same below:
FAQs
HDFC Credila offers education loans as per the requirements. The Union Bank provides education loans up to INR 1.5 crore, with unsecured loans available up to INR 40 lakhs. The amount may be higher based on the requirements of the students.
HDFC Credila offers education loans with interest rates ranging from 10.5% to 14%, which can be slightly higher than public sector banks. Union Bank, being a government bank, provides more affordable interest rates starting from 8.80%.
Yes, both HDFC Credila and Union Bank offer collateral-free loans. HDFC Credila provides collateral-free loans up to INR 80 lakhs, while Union Bank offers unsecured loans up to INR 40 lakhs.
HDFC Credila allows a repayment period of up to 12 years, giving students ample time to repay the loan. Union Bank offers a slightly longer repayment period of up to 15 years.
Students can apply for an HDFC Credila education loan directly through the official HDFC Credila website. For Union Bank education loans, students need to apply via the Vidya Lakshmi Portal.
To know 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 study abroad experience.
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