Education loans for study abroad: HDFC Credila, AUXILO, Prodigy — which is right for you?

A plain-English comparison of the three lenders we work with most — interest rates, collateral requirements, and processing time.

Rahul M.1 Aug 2026 · 7 min read

Every study-abroad file has one big variable: how you're funding it. Most families end up needing an education loan for at least part of the cost. Here's a plain-English comparison of the three lenders Akbar Study Abroad works with most often — and how to pick.

The three main options for Indian students

1. HDFC Credila

Best for: Families with a co-borrower (parent) with strong income, who can put up collateral.

Loan amount: Up to ₹65 lakhs (higher for premier universities)
Interest rate: 10.5–12.5% (as of 2026)
Collateral: Required above ~₹7.5 lakhs
Co-borrower: Required (usually parent)
Processing time: 3–4 weeks
Tax benefit: Yes (Sec 80E)

Strength: Reliable, high loan amounts, strong for tier-1 universities.

Trade-off: Requires collateral and a strong income co-borrower.

2. AUXILO Finserve

Best for: Families who want faster processing and slightly lower collateral thresholds.

Loan amount: Up to ₹60 lakhs
Interest rate: 11–13%
Collateral: Required above ~₹10 lakhs (some cases higher)
Co-borrower: Required
Processing time: 2–3 weeks
Tax benefit: Yes (Sec 80E)

Strength: Faster than most banks, competitive rates.

Trade-off: Interest slightly higher than HDFC Credila for the same profile.

3. Prodigy Finance

Best for: Students without strong collateral, going to a top-ranked global programme.

Loan amount: Depends on programme — typically covers full cost of attendance
Interest rate: Floating, typically 12–15% (in USD)
Collateral: Not required — loan is based on the university's ranking & your profile
Co-borrower: Not required
Processing time: 3–5 weeks
Tax benefit: Available if routed through India (varies)

Strength: The only real option if you don't have collateral or a strong co-borrower. Loan is disbursed in USD directly to the university.

Trade-off: Only works for a specific list of top-ranked programmes. Interest is higher and in foreign currency.

How to pick — a 3-question flowchart

Do you have collateral (property, FD) worth ₹15 lakhs+? — Yes: HDFC Credila or AUXILO. No: skip to Q3.
Do you need fast processing (under 3 weeks)? — Yes: AUXILO. No: HDFC Credila.
Are you going to a top-ranked global programme (Prodigy's list)? — Yes: Prodigy Finance. No: consider public-sector banks (SBI, Bank of Baroda) with government schemes.

Documents you'll always need (regardless of lender)

Admission letter / conditional offer
KYC (Aadhaar, PAN)
Academic records — 10th, 12th, graduation transcripts
English test score (IELTS/TOEFL/PTE)
Co-borrower income proof (last 3 years ITR + salary slips or business income)
Collateral documents (if applicable)
University cost breakdown / GIC certificate (Canada-specific)

Two mistakes to avoid

“Don't wait for the visa to be granted before starting the loan. Loan-in-principle takes 2–3 weeks; you need it for the visa file itself. Start both in parallel.”

The other mistake is over-borrowing. Just because a lender approves ₹60 lakhs doesn't mean you need ₹60 lakhs. Interest compounds — every extra lakh means ₹30,000/year in additional cost.

Where Akbar Study Abroad fits in

We have working relationships with HDFC Credila, AUXILO, and Prodigy that mean shorter processing time and cleaner document handoffs. When you enrol with us, loan processing runs in parallel with your visa file, not after — saving 2–4 weeks on average. See our full study-abroad process →