Education Loan from Credila vs. Avanse - Which Offers Better Loan?

Funding your higher education abroad can be difficult, and selecting the right lender definitely helps to ease that burden. Among the top Indian banks, Avanse and Credila are two established lenders providing education loans for study abroad. Both cover tuition fees, living expenses, and travel expenses, but the two schemes have different terms and benefits.

This blog covers the differences between Avanse vs Credila and which is the best lender for your education loan while studying abroad.

Credila vs Avanse Abroad Education Loans - Comparative Overview

Credila and Avanse have many common features when it comes to providing education loans for studying abroad. Education loans offered by these two lenders cover all the expenses. Below is the comparison table of Avanse vs Credila education loan features.

Credila vs Avanse: Interest Rates

Interest rates are the most crucial factor when comparing education loans, as they directly impact your total repayment amount over 10 - 15 years. Credila and Avanse offer floating interest rates for education loans, which means that the rates can fluctuate over time based on market conditions.

• Credila education loan interest rate: Interest rates vary between 9.95% - 13%

• Avanse education loan interest rate: Interest rates vary between 10.25% - 13.5%

Country-specific interest rates on education loans by Credila and Avanse

Which offers lower interest Rates?

Credila typically offers lower interest rates compared to Avanse. If you have a strong academic profile and good co-applicant income, Credila can save you lakhs in interest over the loan tenure.

Credila vs Avanse Education Loans - Repayment Period

Credila and Avanse offer a longer repayment period of 15 - 17 years. 

The repayment of the loan interest starts immediately after the first disbursement.

The repayment will be in Partial Simple Interest(PSI) or full simple interest. 

The repayment period includes the moratorium period.

• Credila offers a maximum tenure of 15 years.

• Avanse offers a maximum tenure of 17 years.

Eligibility Criteria for Avanse and Credila Abroad Education Loan

Credila and Avanse share similar basic eligibility requirements, but there are some differences in specific criteria.

Credila Eligibility Criteria:

• Both the applicant and the co-applicant should be indian citizens.

• Admission to a recognized university abroad.

• A student taking an education loan from Credila should be 16 or older.

• Co-applicant with stable income.

• Good academic records.

Avanse Eligibility Criteria:

• Both the applicant and the co-applicant should be indian citizens.

• A student taking an education loan from Credila should be 18 or older.

• Admission to a recognized university abroad.

• Good academic records.

• Co-applicant must be working and must be filing ITR for at least 2 years.

Credila vs Avanse Education Loans - Repayment Period

Credila and Avanse offer a longer repayment period of 15 - 17 years. 

The repayment of the loan interest starts immediately after the first disbursement.

The repayment will be in Partial Simple Interest(PSI) or full simple interest. 

The repayment period includes the moratorium period.

• Credila offers a maximum tenure of 15 years.

• Avanse offers a maximum tenure of 17 years.

Documents required for Credila and Avanse Education Loan

Documents required for an education loan application vary based on the applicant's profile and the type of education loan the applicant applies for.

Credila:

• KYC documents of the applicant and the co-applicant.

• Academic records

• Proof of admission

• Standardised test scores

• Statement of the Cost of Studies

• Income proof of the co-applicant

• Bank Account Statements

Avanse:

• KYC documents of the applicant and the co-applicant

• Proof of residence

• Academic records

• Proof of admission

• Fee structure from the institution

• Income proof of the co-applicant

• Bank statements for the last 8 months

If you are going with the secured education loan in Credila or Avanse, the following additional documents need to be submitted.

• Property Title Deed

• Allotment Letter

• Latest Property Tax or Electricity Bill

• Approved Building Plan or Plot Layout

• Chain Deed

Liquid Securities Documents:

• For a Fixed Deposit as security, a principal value certificate is required

• For the Insurance Policy as security, provide policy papers and the surrender value certificate.

• For Government bonds as security, the bond certificate needs to be provided.

How to Apply for Credila Education Loan

Online Process:

1. Fill out the application form and upload documents.
2. The bank will review your application, and you will get your sanction letter.
3. Funds will be disbursed.

Process through WeMakeScholars:

1. Fill in the details in the application form on our website. Our financial officer will contact you within 2 days
2. After receiving the callback, give all the details of your education loan.
3. After analyzing your profile, our financial officer will recommend the best education loan type based on your eligibility.
4. Your Credila login will be created through WeMakeScholars. You can track your application status.
5. Upload documents which is shared by our Financial Officer on the WeMakeScholars portal only.
6. You will get your loan sanction letter from Credila within 6 days, provided you submit all the required documents.

How to Apply for Avanse Education Loan 

Online Process:

1. Start by filling out the online application form.
2. An Avanse representative will reach out and guide you through eligibility.
3. Submit your documents.
4. Once verified, you will receive your sanction letter within days, and funds will be disbursed directly to your university.

Process through WeMakeScholars:

1. Fill in the details in the application form on our website. Our financial officer will contact you within 2 days
2. Talk to our Financial Officer and provide all the information that is asked.
3. After analyzing your profile, our financial officer will recommend the best education loan type based on your eligibility.
4. Submit all the documents which is shared by our Financial Officer in our WeMakeScholars portal.
5. Your file will be logged in Avanse through WeMakeScholars as soon as you submit all the required documents.
6. You will receive your sanction letter within 6 days.

Benefits of Applying through WeMakeScholars

• Upto 2% discount on the Rate of Interest

• Up to 25% discount on the lender's processing fee

• 3 times faster loan process

• Expert advice on the type of loan.

• End-to-end support

Which is better: Credila or Avanse

The answer would depend on your priorities. If you value quick approval and easy repayment and can afford their more expensive terms, Avanse is definitely the right choice for you.

 If you are looking for a loan with the lowest possible interest rate, Credila is the better choice. Ultimately, the decision should consider the university and the borrower's ability to repay the loan on time.

Conclusion

Avanse and Credila are both the top lenders for study abroad education loans in India. If you need quick approval, digital processing, and a longer repayment period, then you can choose Avanse. If you want the lowest interest rate and service from a trusted lender the Credila is best. Check both Avanse and Credila on your course, country selection, and repayment capability, and choose the best education loan.