Credila vs SBI for Abroad Education Loan
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Education loans have made studying abroad accessible to Indian students, including those from tier-2 and tier-3 cities. Credila and State Bank of India offer high loan amounts with flexible repayment. There are some pros and cons of both education loan providers. Choosing the right loan depends on financial needs and preferences.
As of January 2024, 1.3 million Indian students are studying abroad, and this number is expected to increase significantly in the coming years. The easy and digital application process of education loans played a significant role in this. With a better understanding of student loans and various government education loan schemes, studying abroad has become a trend even in tier-2 and tier-3 cities in India. Credila and the State Bank of India (SBI) are two of the most popular education loan providers in India.
Credila is a well-known private NBFC which is dedicated to providing education loans. On the other hand, SBI is the largest public sector bank in India, which offers education loans at competitive interest rates. This article covers point-wise differences between Credila and SBI Education loan for abroad studies.
- Importance of Education Loan for Abroad Studies
- Credila Education Loan
- State Bank of India Education Loan
- Pros and Cons: Credila vs SBI
Importance of Education Loan for Abroad Studies
Not every student has substantial savings in their bank account, so they explore options to study abroad for free or find ways to cover tuition fees and other expenses. An education loan is often the only option for them to finance their studies. It not only offers you financial stability to pay tuition fees, travel costs and other living expenses but also helps reduce the stress of managing finances.
Let’s understand the importance of borrowing the best education loan for studying abroad.
- Financial Stability: The primary objective of borrowing a student loan is to have financial support for tuition fees and other study-related expenses when we do not have the necessary funds at that time.
- No Need to Pay Immediately: You do not need to pay the amount immediately. Repayment usually begins after course completion. It means you will have time to get a job.
Now, lets have a quick look at these two popular education loan providers one by one.
Credila Education Loan
Credila is a well-known Non-Banking Financial Company (NBFC) that specialises in student loans, whether for studies in India or abroad. Over 2 lakh students studying at more than 4,600 universities across 63 countries have availed education loans from Credila.
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The key features of Credila are mentioned below:
- No limit on maximum education loan if you are eligible (Top Universities/Demanding Courses/Applicant’s profile).
- 100% coverage of tuition fees, living expenses, and other study-related course more.
- Flexible repayment options with a tenure of up to 15 years.
- Processing fee ranging from 0.5% to 1% of the loan amount.
State Bank of India Education Loan
A well-known public sector bank, the State Bank of India, offers a wide range of education loans. These student loans are available at low interest rates and include flexible repayment options and a moratorium period. No matter whether you want to study in India or abroad, you can borrow an SBI education loan to cover the expenses related to your studies.
Key Features of SBI Education Loan
- Students can borrow up to INR 1.5 crore for abroad education and INR 75 Lakhs for studying in India.
- Competitive interest rates ranging from 8.15% to 10.5%.
- The processing fee for the SBI education loan is INR 10,000 + GST.
- No collateral required for student loans up to INR 7.5 lakhs.
- Extended repayment tenure of up to 15 years.
- Eligibility for government subsidies under certain schemes.
Difference Between Credila vs. SBI Education Loan
Both providers have their own pros and cons. SBI is a public-sector bank, provides loans with lower interest rates and government subsidies, while Credila, an NBFC, offers customised loan amounts and flexible repayment options. Here we have mentioned point-wise differences between the SBI education loan and the Credila education loan.
| Factors |
Credila |
State Bank of India (SBI) |
|---|---|---|
| Type of Lender |
NBFC |
Public Sector Bank |
| Loan Quantum |
Up to INR 75 lakh |
Up to INR 1.5 crore |
| Collateral Free Amount |
INR 75 Lakhs (Based on Your Profile) |
7.50 Lakhs+ |
| Rate of Interest (As of April 2025) |
Starts From 10.25% |
Starts From 8.15% |
| Processing Fee |
0.5% - 1% of the total loan amount |
INR 10,000 + GST |
| Moratorium Period |
Course period + 1 Year |
Course period + (6 months after job or 1 year after study completion, whichever is earlier) |
| Repayment Tenure |
15 years |
15 years |
| Income Tax Benefits (Under Section 80E) |
Yes |
Yes |
Related Reads
- What Documents Are Required For an Education Loan?
- How to Repay Student Loans Faster?
- Best Education Loan Providers in India for Study Abroad
Government Subsidized Education Loan
State Bank of India (SBI) offers government-subsidized education loans under schemes like the Central Sector Interest Subsidy (CSIS). It means students can either have interest-free education loans or an affordable interest rate. On the other hand, Credila does not provide government-subsidised education loans.
In short, SBI is good for those students who want government subsidies on education loans, whereas Credila is for those who want higher loan amounts.
Pros and Cons: Credila vs SBI
When choosing between SBI education loans and Credila, it is essential to weigh their advantages and disadvantages. Below are some key pros and cons to help you compare both options and make an informed decision.
| Category |
Credila |
SBI Education Loan |
|---|---|---|
| Pros |
|
|
| Cons |
|
|
At the end, SBI Education Loan and Credila offer a wide range of student loans to pursue higher education in India or abroad. SBI is a public sector bank which offers lower interest rates and government subsidies. On the other hand, Credila, a private NBFC, offers customised loan amounts, 100% financing, and a quicker approval process.
It is suggested to compare both options and make a decision according to your needs. Carefully comparing these factors will help students choose the right education loan to fulfill their study-abroad dreams.
Contact India’s leading education loan providers through Shiksha Study Abroad For more queries. Do write to us in the comments below. Or request a call back from our Shiksha Study Abroad Counselling Services.
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