HDFC Credila vs Auxilo Education Loan

When choosing between HDFC Credila and Auxilo for an education loan, your decision boils down to factors like interest rates, co-applicant requirements, tax benefits, and loan accessibility. Here's a quick summary to help you decide:

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HDFC Credila vs Auxilo: Best Lender For Non-Collateral Study Loans

Choosing the right lender for a non-collateral education loan can make a big difference in your study abroad journey. HDFC Credila and Auxilo are two leading lenders that offer flexible loan options, low interest rates and student-friendly terms with different study plans and financial needs.

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Get 50 Lacs No Collateral Education Loan

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Credila vs Auxilo: A Closer Look at Key Factors.

When choosing an education loan provider, understanding key differences between popular lenders like Credila and Auxilo is essential. Both offer tailored loan options for students but factors like interest rates, loan coverage, repayment terms and eligibility criteria can vary significantly. 

Loan Amounts

When planning to study abroad, knowing how much funding a lender can offer is key. Let’s understand the loan amounts provided by Credila and Auxilo.

Credila

• Offers up to ₹75 lakh unsecured, making it ideal for high-cost international or professional courses.
  
• Can fund over ₹1 crore in total education cost (tuition + living) for eligible students.
  
• Provides 100% financing of the cost of education (tuition fees and other permitted expenses) for strong profiles.

Auxilo

• Offers ₹60–65 lakh unsecured for admission to top-ranked universities. Exceptional profiles can avail up to ₹80–90 lakh without collateral.
  
• For other universities, unsecured loans up to ₹35–40 lakh are provided if the co-applicant profile is strong, otherwise collateral may be required.

Here’s a quick comparison of loan amounts by country:

GRE scores play a crucial role in determining loan terms. A score above 310, along with a co-applicant earning ₹30,000/month, may get you up to ₹65 lakhs at 11.25%–11.75% interest. On the other hand, students with scores below 300 may face stricter conditions.

Work experience of 2+ years and a strong GRE score can help you get a no co-applicant loan from Credila for US studies. Consider these benefits along with your academics and family’s finances to choose the right lender.

Eligibility Criteria

Each lender has specific conditions students must meet before they can apply. Here's a quick look at the eligibility criteria for both Credila and Auxilo.

HDFC Credila Eligibility

• Indian citizens aged 18–45 with completion of 10+2 education are eligible.
• A confirmed admission to a recognised institution, domestic or overseas is mandatory.
• Loans above ₹7.5 L (in India) or ₹25 L (abroad) may require collateral.
• A co-borrower (e.g., parent, sibling) with steady income, Indian citizenship, and good credit is required. Extended relatives can serve as co-applicants if needed.
• Factors like academic performance, co-borrower profile, and credit history determine approval and loan size

Auxilo Eligibility

• Indian citizens aged 18+ with confirmed university admission qualify. Good academic records and scores (GRE/IELTS/TOEFL) may increase approval odds.
  
• A co-borrower is required—can be a relative (parent, sibling, guardian, spouse) with stable taxable income and good credit, holding an Indian bank account capable of issuing cheques.
  
• Auxiliary criteria include course type (graduate or professional), institution ranking, and study destination eligibility across countries like the US, UK, Canada, Australia, etc.
  

Interest Rates 

When choosing an education loan, interest rates are a major factor to consider. Both HDFC Credila and Auxilo offer floating interest rates that adjust with market trends. HDFC Credila's rates range between 10.50% and 13%, while Auxilo's fall between 11.25% and 14%.

The exact rate you get depends largely on your profile. Factors like strong GRE scores, prior work experience, and a financially stable co-applicant can help you secure rates closer to the lower end of these ranges.

To understand the impact of these rates, here’s a country-wise comparison of interest rate ranges, highlighting potential savings over a 15-year loan tenure:

Repayment Options

Both lenders offer 12–15 years for repayment and a moratorium of course duration + 12 months. Paying simple interest during this time reduces costs. HDFC Credila loans also qualify for tax benefits under Section 80E.

"Section 80E of the Income Tax Act, 1961 provides a deduction on interest paid for education loans for higher studies in India or abroad, for up to eight years. This applies only to the interest, with no upper limit on the deduction."

For instance, if a borrower in the 30% tax bracket pays ₹1,00,000 annually in interest, they can save ₹30,000 per year through this deduction. Over eight years, this adds up to ₹2,40,000, significantly reducing the interest burden on HDFC Credila loans. Auxilo loans, however, do not qualify for this benefit.

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Get Education Loan with Higher Chances of Approval

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Fees and Additional Flexibility

Processing fees differ slightly between the two lenders. HDFC Credila charges 0.75% to 1.25% of the loan amount, while Auxilo's fees range from 0.5% to 1.5%, depending on the loan amount and borrower profile.

Both lenders allow pre-payment without penalties after the moratorium period. They also offer step-up EMI options, enabling borrowers to increase their monthly payments as their income grows. This is especially helpful for students who land high-paying jobs abroad and aim to clear their debts faster. For those exploring further options, collateral-free loans may also be worth considering.

These repayment flexibilities, combined with the interest rate differences and tax benefits, make the choice between the two lenders an important one to weigh carefully.

Coverage Areas and Partner Institutions

When it comes to education loans, the lender's geographic reach and partnerships with institutions can have a big impact on the loan process. HDFC Credila stands out with a wider presence across India compared to Auxilo, making it a better option for students from smaller towns or remote areas who need loan assistance.

HDFC Credila operates nationwide, covering every state and union territory. Since its establishment in 2006, it has built a strong network, even reaching tier-2 and tier-3 cities. Auxilo, on the other hand, has a more focused presence in select urban areas. Being a newer entrant in the market (founded in 2017), its geographic reach is still growing.

University Partnerships and Global Reach

Another critical factor is how well-connected a lender is with educational institutions. HDFC Credila has funded 1.78 lakh+ Indian students across 4,600+ universities in 63 countries, covering 3,300+ courses. Its wide network helps speed up approvals and simplify the process. Auxilo, though growing, supports fewer institutions across 25+ countries. Credila also partners with platforms like Flywire for smoother international fee payments. As Arijit Sanyal, Managing Director and CEO of HDFC Credila, noted:

"Through our partnership with Flywire, our borrowers now have an easier way to pay their educational institutions with borrowed funds in Indian rupees, and HDFC Credila benefits from full transparency and trackability of overseas payments. We are delighted to partner with Flywire and thereby offer our borrowers an upgraded payment experience."

Impact on Loan Processing

HDFC Credila’s strong local presence and broad institutional network contribute to faster loan processing. This is particularly beneficial for students in remote areas or those applying to lesser-known universities abroad. With established systems and risk assessments for a wide range of institutions, Credila can often process loans more efficiently.

For students comparing study abroad loan providers, understanding these differences in coverage and partnerships is key to choosing the right lender based on accessibility and ease during the application process.

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Which Lender to Choose: Situation-Based Guide

When deciding between HDFC Credila and Auxilo, your choice should hinge on your financial circumstances, academic background, and specific loan needs. To make this decision easier, here’s a scenario-based guide to help you weigh your options:

Students Without Co-applicants

HDFC Credila is ideal if you don’t have a co-applicant, offering loans without one for select countries. Auxilo, in contrast, requires a co-applicant with stable income for unsecured loans.

Tax Benefits Focus

HDFC Credila loans qualify for Section 80E tax benefits, helping reduce the overall loan cost. Auxilo doesn’t offer this benefit.

Strong Academic or Professional Profiles

Auxilo may offer better rates to students with high GRE scores or work experience, but still requires a co-applicant, limiting flexibility.

Accessibility for Smaller Cities

HDFC Credila has a wider presence in tier-2 and tier-3 cities, offering better support. Auxilo mainly operates in metros, which may limit access in smaller towns.

Speedy Processing

Auxilo may process loans in 5–7 days in metro cities. Outside metros, HDFC Credila’s strong network usually ensures 10–15 day processing.

Loan Amount and Study Destination

Both offer unsecured loans up to ₹75 lakh. Credila supports 5,000+ institutions in 64 countries; Auxilo partners with 1,100+ in 25+ countries, choose based on your destination.

Low Co-applicant Income Scenarios

HDFC Credila may waive co-applicant needs for strong profiles, making it more suitable for students from low-income families. Use platforms like Propelld to compare options based on future income.

HDFC Credila and Auxilo are both reliable for education loans, but they cater to different borrower profiles. 

Keytakeaways

Choose HDFC Credila if you need tax benefits, loans without a co-applicant, or live in a smaller city. Opt for Auxilo if you have a strong academic profile and a co-applicant, and prefer loans for specific destinations like the UK. Both lenders offer competitive terms, but the right choice depends on your specific needs.To compare more loan options based on your academic profile and repayment capacity, you can check your eligibility on Propelld.

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