As of January 2024, nearly 1.3 million Indian students were pursuing education abroad, and this number is expected to grow in the coming years. The rise of digital application processes for education loans has made it easier for students to finance their overseas studies.
Studying abroad has become increasingly accessible, even for students from tier 2 and tier 3 cities, with greater awareness of student loans and government education loan schemes. Among the top education loan providers in India are Credila and State Bank of India (SBI). Credila, a leading private NBFC, specialises in education loans, while SBI, India’s largest public sector bank, offers loans at competitive interest rates. This article explores the key differences between Credila vs SBI education loans for studying abroad.
Importance of Education Loans for Studying Abroad
Not every student has enough personal savings to fund studies abroad. Many explore options like scholarships, free courses, or other financial aids, but an education loan often becomes the most practical solution. It provides the necessary funds to cover tuition fees, travel expenses, and living costs, ensuring financial stability and reducing the stress of managing expenses while focusing on studies.
Borrowing from reliable education loan providers is crucial for a smooth study-abroad experience. The following is why:
- Financial Stability: The main benefit of an education loan is to secure financial support for tuition fees and other study-related costs when personal funds are insufficient.
- Flexible Repayment: You don’t have to repay the loan immediately. Most education loans allow repayment to start only after completing your course, giving you time to settle into a job and manage finances comfortably.
Credila Education Loan
Credila is a leading Non-Banking Financial Company (NBFC) that specializes in education loans for students pursuing studies in India or abroad. Over 2 lakh students across 4,600+ universities in 63 countries have benefited from Credila’s loans, making it one of the most trusted private education loan providers in India.
The following are the key features of Credila Education Loan:
- No upper limit on the loan amount for eligible students (based on top universities, high-demand courses, or applicant profile).
- 100% coverage of tuition fees, living expenses, and other course-related costs.
- Flexible repayment options with a tenure of up to 15 years.
- Low processing fees ranging from 0.5% to 1% of the loan amount.
State Bank of India (SBI) Education Loan
SBI, India’s largest public sector bank, offers a variety of education loans at competitive interest rates. These loans come with flexible repayment options and a moratorium period, making them a popular choice for students planning to study in India or abroad.
The following are key features of SBI Education Loan:
- Loan amount up to INR 1.5 crore for studying abroad and INR 75 lakhs for Indian education.
- Competitive interest rates ranging from 8.15% to 10.5%.
- Processing fee of INR 10,000 + GST.
- No collateral required for 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 Credila and SBI education loans have their own advantages and limitations. SBI, being a public-sector bank, provides loans at lower interest rates and offers access to government subsidies. On the other hand, Credila, a private NBFC, provides customized loan amounts and more flexible repayment options. Check a detailed comparison to help choose the best from education loans for studying abroad:
| Factors | Credila | State Bank of India (SBI) |
|---|---|---|
| Type of Lender | NBFC | Public Sector Bank |
| Loan Amount | Up to INR 75 lakh | Up to INR 1.5 crore |
| Collateral-Free Amount | Up to INR 75 lakh (based on profile) | Up to INR 7.5 lakh+ |
| Interest Rate (as of April 2025) | Starts from 10.25% | Starts from 8.15% |
| Processing Fee | 0.5% – 1% of 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 | Up to 15 years | Up to 15 years |
| Income Tax Benefits (Section 80E) | Yes | Yes |
Pros and Cons of Credila vs SBI Education Loan
Choosing the right education loan is crucial for students planning to study in India or abroad. Comparing Credila and SBI Education Loan can help you make an informed decision. Below is a detailed look at their pros and cons:
| Category | Credila | SBI Education Loan |
|---|---|---|
| Pros | No upper limit on the student loan amount. 100% financing of tuition fees and living expenses. Flexible repayment options. Easy and digital application process with minimal paperwork. | Lower interest rates compared to Credila. Access to government subsidies. Lower processing fees. Longer repayment tenure up to 15 years. |
| Cons | Higher interest rates compared to SBI. Higher processing fees. No eligibility for government subsidies. May require margin money contribution. | Collateral required for loans above INR 7.5 lakh. Longer processing time due to stricter documentation requirements. |
Both SBI Education Loans and Credila provide reliable options for financing higher education. While SBI, as a public sector bank, offers lower interest rates, government subsidies, and long repayment tenures, Credila, a private NBFC, stands out for customized loan amounts, 100% coverage, and faster approval.
The right choice depends on your loan amount, repayment capacity, and urgency of funds. Compare both carefully to select the loan that best meets your study-abroad requirements.
Also Check:
Study Abroad September 2026 Intake
How to Study Abroad for Free in 2026 from India?
How to Apply for Universities Abroad?
Best Countries to Study Abroad for Indian Students in 2026
FAQs
Q1. What is the maximum loan amount offered by Credila and SBI for studying abroad?
Ans. Credila offers customized loans with no upper limit for eligible students, while SBI provides up to INR 1.5 crore for studying abroad.
Q2. Which education loan has lower interest rates, Credila or SBI?
Ans. SBI education loans have lower interest rates starting from 8.15%, compared to Credila loans starting from 10.25%.
Q3. Can I get a student loan without collateral?
Ans. Yes, Credila offers loans based on profile with no collateral, and SBI provides collateral-free loans up to INR 7.5 lakh.
Q4. What repayment options do Credila and SBI offer?
Ans. Both offer flexible repayment tenures up to 15 years, with repayment starting after course completion or after a job placement.
Q5. Are government subsidies available for these loans?
Ans. SBI loans may provide eligibility for government subsidies under certain schemes, whereas Credila loans do not include government subsidies.
