Education Loan from India or USA: Choose the smarter option

January 06, 2011

With everyone trying to get into the best universities of the world, top universities in USA get a pool of talent every year. But the competition is so acute that only the ones who perform exceptionally well get the scholarships and the rest are left to finance their studies themselves. The value of talent in these universities, however, is high. So much so that most USA universities have done tie ups with banks to offer education loans to international students at subsidized rates to study at their university. Also, many banks have taken individual steps to ensure international students have access to education loans, without being recommended by a university.

But before you proceed any further, know your loan options upfront and save yourself a lot of time, money and hassles. When it comes to Indian students there are plenty of Indian banks providing education loan to students to study abroad. However, you must educate yourself and know all the options you can benefit from. It is known for a fact that the rate of interest charged by Indian banks is usually higher than what is charged by USA banks for education loan programmes.

Options back home: Education loan in India

A Subsidiary of HDFC Ltd. HDFC Credila is a one of a kind Non Bank Finance Company which focuses exclusively on lending Education Loans to students. It has a Study Abroad scheme that covers the total tuition fees of the study programme along with covering up to 100% of other expenses like living and hostel expenses, examination fees, library/laboratory fees, purchase of study material, travel fare and more.

The Floating rate of interest for HDFC Credila education loan is approximately calculated by summing Credila’s CBLR and Spread, i.e. (Credila’s CBLR + Spread) % per annum.

Where Credila’s Current CBLR is 12.35% per annum and the Spread is determined by calculating a number of factors.