Choosing between a specialised NBFC like HDFC Credila and a trusted public sector bank such as Bank of Baroda (BoB) is a major decision for students planning to study abroad.
Both lenders offer strong benefits, but they differ in approval speed, flexibility, processing experience, and overall borrower convenience. While BoB provides the assurance of a government-backed institution with competitive interest rates, HDFC Credila stands out for personalised offerings and faster turnaround times.
This blog breaks down the key differences between HDFC Credila and Bank of Baroda education loans to help you choose the option that best fits your academic and financial plans.
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Quick Snapshot: HDFC Credila vs Bank of Baroda Education Loan
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Feature
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HDFC Credila
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Bank of Baroda
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Primary Focus
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Personalised, fast NBFC loans
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Low-interest PSU bank loans
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Max Loan Amount
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No upper limit (Secured)
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Up to ₹1.5 Crore (Baroda Scholar)
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Interest Rate (2025)
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10.25% – 14.50%
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8.70% – 12.70%
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Collateral Required?
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Unsecured up to ₹75 Lakhs
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Required above ₹7.5 Lakhs
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Processing Time
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7–10 Business Days
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15–20 Business Days
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Margin Money
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0% (100% Coverage)
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10% – 15% (for Abroad)
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Processing Fee
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1% – 1.5% (Non-refundable)
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Up to 1% (Refundable*)
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Tax Benefit
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Section 80E eligible
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Section 80E eligible
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Don’t forget to check the co-applicant criteria. Our guide on Who Can Be a Co-Applicant for an Education Loan breaks down the eligibility and documents you’ll need.
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Detailed Comparison: HDFC Credila vs Bank of Baroda Education Loan
Deciding on the right amount to borrow is the first step in planning your academic journey. When comparing the HDFC Credila vs Bank of Baroda education loan, it is essential to look beyond the total sum and evaluate exactly which costs, from tuition to living expenses, are included in your funding package.
Loan Amount & Coverage
HDFC Credila
Bank of Baroda
HDFC Credila
When comparing HDFC Credila vs Bank of Baroda education loan limits, Credila often wins on sheer volume.
They do not set a rigid upper cap for secured loans, often funding the entire cost of attendance (COA)
for prestigious universities. For unsecured loans, Credila offers up to ₹75 Lakhs to ₹80 Lakhs for
students heading to the USA or top-tier global programmes.
Bank of Baroda
Does Bank of Baroda provide education loans for abroad studies? Absolutely. Through their Baroda
Scholar scheme, they offer up to ₹1.5 Crore for premier institutions and up to ₹60 Lakhs for others.
While the limits are generous, BoB's coverage is strictly governed by their university lists
(Premier vs Non-Premier).
Interest Rates & Financial Transparency
Bank of Baroda
HDFC Credila
What is the rate of interest for BOB education loan?
As a PSU, Bank of Baroda offers some of the most competitive rates in India.
In 2025, the rate of interest for BOB education loan typically starts from 8.70%
for premier institutes. These rates are floating and linked to the BRLLR
(Baroda Repo Linked Lending Rate). Additionally, female students often enjoy
a 0.50% concession, making it one of the most affordable options for domestic
and international study.
HDFC Credila Interest Rates
HDFC Credila’s rates are generally higher, ranging from 10.25% to 14.50%.
Their pricing is linked to the CBLR (Credila Benchmark Lending Rate).
While more expensive on paper, Credila justifies this through the lack
of margin money and faster processing. They also provide customised rates
based on your GRE/GMAT scores and the university’s employability rank.
Collateral & Margin Money Rules
This is perhaps the biggest differentiator in the HDFC Credila vs Bank of Baroda education loan battle.
- Margin Money: Bank of Baroda requires a margin of 10% to 15% for abroad studies (meaning you pay 15% of the cost). HDFC Credila offers 0% margin, meaning they can fund 100% of your tuition, living, and travel costs.
- Collateral: BoB is quite rigid, any loan above ₹7.5 Lakhs usually requires 100% tangible collateral (property, FD, or insurance policies). Credila, however, is the market leader in unsecured loans, offering up to ₹80 Lakhs without any collateral for eligible profiles.
For insights on which destinations offer the best opportunities and value, check out our guide on the best country to study abroad for Indian Students in 2025.
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Approval Process & Timelines (TAT)
In the world of admissions, timing is everything.
HDFC Credila
Bank of Baroda
As an NBFC, they are built for speed. You can expect a sanction letter in
7 to 10 days. They are also comfortable issuing "Pre-admission sanctions,"
which help you secure your I-20 or Visa documents before the university
deadline.
Being a PSU, the process is more manual and involves extensive legal and
technical verification of collateral. The typical Turnaround Time (TAT)
is 15 to 25 days.
Repayment Flexibility
Repayment is a decade-long commitment, and both lenders offer different philosophies on how you should pay back your debt.
Moratorium Period
Both lenders offer a standard moratorium covering the course duration plus 6 to 12 months. However, Bank of Baroda generally expects simple interest to be serviced during the study period for certain schemes, whereas HDFC Credila offers more "Partial Interest" options that can lower your initial burden.
EMI Structure
Bank of Baroda usually sticks to standard EMI structures. In contrast, HDFC Credila often allows for more customisation, such as step-up repayments where your EMIs increase as your salary grows over time.
Foreclosure Charges
Under RBI and NHB guidelines, both lenders offer zero-penalty foreclosure on floating-rate loans. This means you can pay off your entire HDFC Credila vs Bank of Baroda education loan balance early using your bonuses or savings without any extra cost.
Who Should Choose Which?
Choose Bank of Baroda if...
Choose HDFC Credila if...
- You have strong tangible collateral (House/FD).
- You want the lowest possible interest rate.
- You can manage the 15% margin money.
- You are a female student (for the 0.5% ROI drop).
- You want an unsecured loan (No collateral).
- You need the loan sanctioned within 7 days.
- You want 100% financing (0% margin).
- You are attending a non-premier but reputable uni.
Ultimately, the choice between HDFC Credila vs Bank of Baroda education loan depends on your financial priorities: BoB offers the lowest cost of borrowing for those with assets, while Credila provides the speed and collateral-free flexibility required for modern global admissions.
By weighing the 100% financing of Credila against the low-interest PSU stability of BoB, you can select the partner that best aligns with your career trajectory. No matter which path you choose, ensuring you understand the fine print of your repayment of education loan is the key to long-term financial freedom.
Ready to start your education journey without collateral hurdles? Apply with Propelld today.
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