Credila vs SBI Education Loan: Complete 2025 Comparison for Indian Students

Introduction

For Indian students chasing their dream of studying abroad, financing the journey is often the biggest hurdle. With tuition fees, living costs, and travel adding up to lakhs of rupees, choosing the right education loan becomes a life-defining decision.

Two of the most popular choices in 2025 are Credila, India’s leading NBFC specializing in student loans, and SBI, the country’s largest public-sector bank with a government-backed reputation. Both options come with their strengths. But the question arises which one is right for you?

This blog breaks down the pros and cons of Credila vs SBI education loans across all important factors: eligibility, interest rates, collateral requirements, repayment terms, and more. By the end, you’ll know which lender fits your profile and how Lorien Finance can help you secure the best option with quick loan sanction and disbursal, provided with complete verified documentation.

Overview of Credila and SBI Education Loans

Credila

• NBFC dedicated exclusively to education loans.
• Covers 100% of study-related costs, including tuition, living, travel, and insurance.
• Known for flexibility and faster sanction timelines.

SBI (Global Ed-Vantage Scheme)

• Public sector bank with strong government credibility.
• Designed specifically for Indian students pursuing full-time courses abroad.
• Offers large ticket-size loans with competitive interest rates for collateralized loans.

Key difference: Credila is flexible and private, while SBI is government-backed with stricter requirements but higher trust.

Credila vs SBI Education Loan: Quick Comparison Table

Eligibility Criteria

Credila

• Available for UG, PG, MBA, MS, MBBS, and PhD programs abroad.
• Requires admission confirmation letter.
• Co-applicant (usually a parent/guardian) mandatory.
• Income proof of co-applicant evaluated for repayment ability.

SBI

• Available for full-time regular graduate/post-graduate courses abroad.
• Recognized universities and professional courses (STEM, management, medicine).
• Co-applicant compulsory.
• 100% tangible collateral required.

Verdict: Credila is more flexible for niche or new-age courses, while SBI is stricter but covers top universities worldwide.

Loan Amount and Coverage

Credila

• No strict upper cap (evaluated case by case).
• Generally funds up to 100% of total study cost.
• Covers tuition fees, living expenses, travel, insurance, books, laptops, and other education-related costs.

SBI (Global Ed-Vantage)

• Loan amount: ₹20 lakhs to ₹1.5 crore.
• Covers tuition fees, living expenses, exam fees, library/lab charges, travel, and insurance.

Verdict: Both cover end-to-end expenses. SBI offers very high sanctioned amounts, while Credila gives more flexibility in approving full costs without strict margins.

Interest Rates and Repayment Terms

Credila

• Interest rate: Starts at 9.95% p.a. (floating).
• Repayment tenure: Up to 15 years.
• EMI begins after moratorium (course period + grace).
• No prepayment penalty.

SBI

• Interest rate: Around 11.15% p.a. (linked to EBLR).
• Concessions: 0.50% for female students, 0.50% for students of select institutions.
• Repayment tenure: Up to 15 years.
• Moratorium: Course period + 6 months.

Verdict: Credila generally offers lower starting rates, while SBI’s concessions can reduce costs for eligible students.

Collateral and Documentation Requirements

Credila

• Offers both collateralized and non-collateral loans.
• For higher amounts, collateral may be requested.
• Documentation: Admission letter, KYC, cost of study, academic records, co-applicant income proof, and collateral paper if pledged (title deed, registration, ownership proof).

SBI

• 100% tangible collateral mandatory for Global Ed-Vantage.
• Accepts immovable property, fixed deposits, or securities.
• Documentation: Admission letter, KYC, academic records, fee structure, co-applicant income proof, and complete collateral paper set.

Verdict: SBI is stricter as collateral is non-negotiable. Credila gives more flexibility, especially for students without collateral.

Processing Time and Ease of Application

Credila

• Application: Fully digital process.
• Loan sanction: Often within 7–10 days.
• Known for flexibility in last-minute sanctions.

SBI

• Application: Online application + offline document submission at branch.
• Loan sanction: May take 2–3 weeks due to government checks and collateral verification.

Verdict: Credila is faster and more flexible. SBI takes longer but offers government-backed assurance.

Unique Benefits of Each Lender

Credila

• Specializes only in education loans → tailored support.
• Flexible repayment options and no prepayment penalty.
• Covers a wide range of universities and niche programs.

SBI

• Lower rates for collateralized loans.
• Government credibility and wide acceptance by universities.
• Tax benefits under Section 80E of the Income Tax Act.

Student Scenarios (Use Cases)

• With strong collateral: SBI is often better due to lower interest rates and high sanction limits.
• Without collateral: Credila is the go-to option for funding.
• Urgent sanction needed: Credila (with Lorien Finance) offers quick approval.
• Female student at a reputed institution: SBI may offer rate concessions that make it more attractive.

Lorien Finance’s Role in the Process

Choosing between Credila and SBI can be overwhelming. That’s where Lorien Finance steps in.

• We help you compare lenders side by side based on your profile.
• Our experts guide you through collateral paper preparation and documentation.
• With Lorien Finance, you can expect quick loan sanction and disbursal, provided with complete verified documentation.
• Beyond loans, we also support with forex, insurance, and accommodation — making your study abroad journey stress-free.

Final Verdict: Credila vs SBI  Which is Right for You?

There’s no one-size-fits-all answer.

• If you have strong collateral and want the credibility of a government bank, SBI is an excellent choice.
• If you lack collateral, need faster approvals, or want flexibility, Credila is better suited.

Ultimately, the best loan depends on your profile, co-applicant’s financials, and the timeline for your admission and visa process.

Both Credila and SBI are strong contenders for financing your education abroad in 2025. The right choice depends on whether you prioritize lower rates with collateral or faster sanction without it.

At Lorien Finance, we specialize in helping students like you navigate these decisions. With our expert guidance, you’ll not only choose the right lender but also enjoy quick loan sanction and disbursal, provided with complete verified documentation. Ready to find the best loan for your study abroad dream? Connect with Lorien Finance today and start your journey stress-free.

FAQs

Which is better for study abroad loans: Credila or SBI?
It depends on your profile. SBI is better if you have strong collateral and want lower interest rates backed by a PSU. Credila is better if you don’t have collateral, need faster sanction, or want flexibility.

Can I get a study abroad loan without collateral?
Yes. Credila provides non-collateral loan options, while SBI’s Global Ed-Vantage requires 100% collateral.

Who offers faster loan approval: SBI or Credila?
Credila is usually faster (7–10 days), while SBI may take 2–3 weeks due to collateral verification. With Lorien Finance’s support, approvals can be streamlined with both lenders.

What is the maximum loan amount I can get from Credila and SBI?
Credila funds up to 100% of your total study costs (case by case). SBI offers loans from ₹20 lakhs up to ₹1.5 crore.

Do both lenders cover living expenses and travel costs?
Yes, both Credila and SBI cover tuition, living, travel, and insurance expenses as part of their study abroad loans.

How can Lorien Finance help me choose the right loan?
Lorien Finance helps you compare lenders, prepare collateral papers, and secure quick loan sanction and disbursal, provided with complete verified documentation.