Credila vs SBI for Abroad Education Loan

Education loans have made studying abroad accessible to Indian students, including those from tier 2 or 3 cities. Credila and State Bank of India offer high education loan amounts with flexible repayment. There are some pros and cons of both education loan providers. Check how can you choose the right provider.

As of January 2024 around 1.3 million Indian students were studying abroad and this number is expected to increase in the upcoming years. Ease of using digital application processes for education loans has played an important role here. With a better understanding of student loans and various government education loan schemes, studying abroad has become popular among those coming from tier 2 or 3 Indian cities. Credila and State Bank of India (SBI) are two most popular education loan providers in India. Credila is a well known private NBFC 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 differences between Credila and SBI Education loan for abroad studies. 

Also Read: 

• Steps to filling an Education Loan Form
• Education Loan Interest Rates

Importance of Education Loan for Abroad Studies

Not every student has enough savings to options to study abroad. So they look lucrative options like study for free or look for options to cover tuition and other expenses. An education loan is often the only option to finance studies abroad. It not only offers financial stability to pay tuition fees, bear travel costs and other living expenses but also helps reduce stress of managing finances.

Let's understand the importance of borrowing from best education loan providers for studying abroad.

1. 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.
2. 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.

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

SBI is a leading public sector bank and offers a range of education loans. These student loans are available at low interest rates and include flexible repayment options and a moratorium period. Irrespective of your plans to study in India or abroad you can borrow from SBI.

The key features of SBI are mentioned below:

• 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.

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 suitable for students who want government subsidies on education loans, whereas Credila is better suited for those who require higher loan amounts.

Pros and Cons: Credila vs SBI

When choosing between SBI education loans and Credila, it is essential to weigh all pros and cons. They are as follows.

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 loans at lower interest rates with government subsidies. While Credila is a private NBFC and offers customised loan amounts with 100% financing. Its approval process is quicker than others. Compare both options and then make a decision based on your requirements.

Contact India’s leading education loan providers to get Education Loans to Study Abroad. For admission related queries write to us in the comments below. Or request a call back from Shiksha Study Abroad.