HDFC Credila vs. Avanse: Which is Better for Education Loans?

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HDFC Credila vs Avanse Abroad Education Loans - Comparative Overview
HDFC Credila vs. Avanse - Interest Rates
HDFC Credila vs. Avanse - Country Specific Differences
HDFC Credila vs. Avanse Education Loans - Repayment Period
Is HDFC Credila Or Avanse Better?
Frequently Asked Questions

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Compare HDFC Credila vs. Avanse education loans. Understand their interest rates, eligibility criteria, benefits, and find best option for your higher education.

Education loan Avanse Credila HDFC

Rohit Gidwani

Meet Rohit, an expert in the field of study abroad and Ed-tech with many years of professional experience in content creation and creative writing. Being a BBA graduate has helped him to pursue his...

Updated on: 11 Dec 2024 | Reviewed By: Aman

Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh...

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Non-Banking Financial Companies (NBFCs) have made a significant impact on the Indian market for study abroad education loans since their establishment. According to CRISIL (Credit Rating Information Services of India Limited), education loans by NBFCs have an expected growth of 35% - 40% to around INR 35,000 Cr in the financial year 2023-24.

Two prominent players in the NBFC space catering to the higher education aspirations of Indians are HDFC Credila and Avanse. Unlike many traditional banks that require collateral for loans exceeding INR 7.5 Lakh, these NBFCs offer flexible options. Students can avail education loans for higher amounts, either with or without the need for collateral security, making the dream of studying abroad more attainable for many.

HDFC Credila vs Avanse Abroad Education Loans - Comparative Overview

Education loans offered by HDFC Credila and Avanse share many common features. They cover 100% of your expenses, unlike education loans from banks. You can get secured or unsecured education loans of high amounts, but collateral security is mandatory for bachelor’s courses.

See the table below for a comparison of Avanse vs Credila education loan features:

Features	HDFC Credila	Avanse
Maximum loan amount	INR 20 - 75 Lakh	INR 20 - 75 Lakh
Interest rate*	10.5% - 12.5%	11% - 13%
Moratorium period	Course period + 1 year	Course period + 1 year
Repayment during the moratorium period	Simple Interest (SI) or partial Simple Interest (PSI)	Simple Interest (SI) or partial Simple Interest (PSI)
Processing fee	0.5% - 1.5% of the loan amount + GST	1% - 2% of the loan amount + GST
Loan tenure	12 - 15 years	12 - 15 years
Margin money	Nil	Nil
Minimum co-applicant income (negotiable for secured education loans)	INR 30,000 - 60,000	INR 30,000 - 60,000
Loan Approval Based on GRE / GMAT?	Yes	Yes
Give Pre Admission Loans	Yes	Yes
Credit life insurance premium	1.25% - 1.5% of the loan amount	1.25% - 1.5% of the loan amount

*Interest rate as on July 2024

As the table shows, the features of education loans by HDFC Credila and Avanse are almost the same. Let’s see the unique features of both lenders to decide which is better for you.

HDFC Credila:

Founded in 1977 for housing loans, HDFC Credila became a dedicated NBFC for education loans in 2006, making it the oldest NBFC in India dedicated to education loans. The following points explain what makes HDFC Credila unique:

HDFC Credila offers education loans for 1,000+ institutions across 35+ countries
Offers education loans against properties mortgaged with HDFC Bank
Semi-collateral education loans are possible
For select countries, such as the US, HDFC Credila offers education loans without a co-applicant for applicants with 310+ GRE scores and work experience
Education loans from HDFC Credila give tax benefits under section 80 E

HDFC Credila Review:

An applicant, aged 38, faced challenges in securing an education loan due to age-related criteria often imposed by lenders. However, GyanDhan successfully assisted him in obtaining an unsecured loan from Credila.

Avanse:

Founded in 2013, Avanse financial services offer customized education loans for deserving students to study abroad. The major features of Avanse include the following:

Avanse offers education loans for 3,000+ institutions across 50+ countries
Education loans by Avanse are highly flexible for the student
The acceptance rate is high for Avanse than any other lender of education loans

Avanse Education Loan Review:

A student faced multiple rejections from lenders like Credila and Auxilo due to a poor CIBIL score. Despite these setbacks, team GyanDhan helped her secure a loan from Avanse, even without an offer letter. Understanding her financial challenges, we also assisted with a partial processing fee, with the rest to be paid after receiving the admission letter.

HDFC Credila vs. Avanse - Interest Rates

Interest rates are a crucial factor when selecting an education loan, as they determine the total cost of borrowing and affect your repayment amount. Both HDFC Credila and Avanse offer floating interest rates for education loans, which means that the rates can fluctuate over time based on market conditions.

Floating interest rates are variable and can change periodically. They are typically linked to a benchmark rate such as the Marginal Cost of Funds based Lending Rate (MCLR) or the Repo Rate set by the Reserve Bank of India (RBI).

HDFC Credila education loans: interest rates vary between 10.5% - 12.5%.
Avanse education loans: interest rates vary between 11% - 13%.

See the table below for country-specific interest rates on education loans by HDFC Credila and Avanse:

Country	HDFC Credila	Avanse
Australia	12% - 12.5%	12.5% - 13%
Canada	12% - 12.5%	12% - 13%
Germany	12% - 12.5%	12.5% - 13%
Ireland	12% - 12.5%	12.5% - 13%
New Zealand	12% - 12.5%	12.5% - 13%
UK	12% - 12.5%	12.5% - 13.%
US	11.5% - 12.5%	11.75% - 13%

*Interest rate as of August 2024

The interest has to be paid in the moratorium period. Generally, the interest rates are lower for STEM courses and are flexible for students with high academic merits and co-applicant income.

HDFC Credila vs. Avanse - Country Specific Differences

When selecting an education loan, the country and course of study can significantly influence the loan terms and conditions. HDFC Credila and Avanse both offer customized loan packages that consider the specific financial requirements associated with studying in different countries. The maximum loan amount offered by these lenders can vary based on the country of study due to differences in tuition fees, cost of living, and other expenses. Since the cost of study and living is different, the maximum loan amount changes for different countries abroad.

Here is the list of top countries to study abroad and the maximum loan amount by HDFC Credila and Avanse. Under the maximum amount, you can see the minimum income of the co-applicant (known as FOIR - Fixed Obligation to Income Ratio) required for an unsecured education loan.

Country	HDFC Credila	Avanse
Australia	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000
Canada	Up to INR 20 - 40 Lakh Co-applicant income: INR 30,000 - 50,000	Up to INR 20 - 40 Lakh Co-applicant income: INR 30,000 - 40,000
Germany	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000
Ireland	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000
New Zealand	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000
United Kingdom	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000	Up to INR 20 - 30 Lakh Co-applicant income: INR 35,000 - 50,000
United States	Up to INR 40 - 75 Lakh Co-applicant income: INR 20,000 - 35,000	Up to INR 40 - 75 Lakh Co-applicant income: INR 20,000 - 35,000

Note: For the top 100 QS-ranked universities, Avanse can offer education loans up to INR 40 Lakh.

HDFC Credila vs. Avanse Education Loans - Repayment Period

An important factor in selecting an education loan is its repayment tenure. HDFC Credila and Avanse offer a longer repayment period of 12 - 15 years. The repayment will be in Simple Interest (SI) or Partial Simple Interest (PSI), depending on various factors such as the country and course of study. The repayment period includes the moratorium period.

Generally, STEM courses are given the option of PSI, whereas non-STEM courses are given the option of SI. The interest repayment starts after the loan is disbursed.

Is HDFC Credila Or Avanse Better?

HDFC Credila and Avanse benefit the students in their own ways. Deciding which is better for you depends on your eligibility and preference. However, the following points may help to decide which is better for you among HDFC Credila and Avanse:

Check the universities and courses covered by HDFC Credila and Avanse and see which education loan is available for your case. If your university or course hasn’t been listed by them, explore which lender has more chances for negotiations
If you get admission to a top institute abroad, HDFC Credila can be your first preference since it gives you comparatively lesser-interest education loans with tax benefits
Education loans by HDFC Credila are available for more states and Union Territories in India compared to Avanse
If you have more backlogs, Avanse has higher odds of approval than HDFC Credila. Also, Avanse covers more countries and 3 times the institutions covered by HDFC Credila

If you are eligible, an education loan from HDFC Credila can be prioritized for its tax benefits and interest concessions. Even a small difference in the tax will save you lakhs as the repayment is a matter of 10 - 15 years for an education loan. But that doesn’t make Avanse an inferior choice because it is highly flexible for your needs and situations. To find a solution, estimate your monthly EMI using a calculator and compare HDFC Credila and Avanse loan products to see the difference and make the right choice.

As a matter of fact, your choice matters only if you match the eligibility criteria set by the lenders. Ensure you are eligible for an education loan from HDFC Credila or Avanse. It is advisable you explore the best education loan options available for your profile besides HDFC Credila or Avanse since your aim is to get the best education loan. Wondering how can you connect with multiple lenders at one place? Well, look no more! GyanDhan is here to simplify your hunt for the best education loan deal. We evaluate your profile and compare more than 15 lenders for you in one go. Not only this we accompany you throughout your education loan journey and provide post loan disbursement services as well. And the best part is all this comes for free. So to grab the best education loan deal check your loan eligibility with GyanDhan today!

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Frequently Asked Questions

Which is better for MS in the US education loan - HDFC Credila or Avanse?

Depending on your eligibility, HDFC Credila or Avanse can be the better option. Both lenders offer education loans up to INR 75 Lakhs for MS in the US.

While HDFC Credila provides education loans for MS in the US at an interest rate of 11.50% - 12%, Avanse charges an interest of 12% - 12.25%.
HDFC Credila offers tax benefits under section 80 E.

So, if eligible, HDFC Credila can be the better lender. But as the list of eligible universities is limited for HDFC Credila, make sure your university is eligible for an education loan from HDFC Credila.

What is the difference between HDFC and HDFC Credila?

HDFC is a private sector bank in India, whereas HDFC Credila is an NBFC for education loans. HDFC Credila is an HDFC. Ltd subsidiary company. HDFC Credila is closely linked to HDFC Bank, so it is possible to get an education loan from HDFC Credila against a property mortgaged with HDFC Bank.

What is the processing fee for HDFC Credila and Avanse education loans?

The loan processing fee is the amount the lender charges to process and evaluate the loan application. The processing fee for HDFC Credila and Avanse education loans is fixed, which is 1% - 2% of the loan amount plus GST.

How many days does it take to get an education loan from HDFC Credila and Avanse?

Compared to banks, the loan processing time is lesser for NBFCs like HDFC Credila and Avanse. It takes around 7 - 10 days after document submission to get an education loan from HDFC Credila and Avanse.

Which lender has more chance of accepting my application - HDFC Credila or Avanse?

Compared to HDFC Credila, Avanse has a higher acceptance rate of applications. However, operations of Avanse are restricted to select cities and do not penetrate to remote or rural regions. On the other hand, HDFC Credila offers education loans to more states and Union Territories than all other NBFCs.

Is avanse good for education loan?

Yes, Avanse is a good choice for education loans, particularly for studying abroad. They offer customized loan solutions with competitive interest rates and cover a wide range of expenses, including tuition and living costs. Avanse provides flexible repayment options and quick loan processing, and they offer unsecured loans for eligible students, eliminating the need for collateral.

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