Studying abroad is a life-changing experience, but it also comes with a big financial investment. In India, Tata Capital and Credila are two of the most favored lenders for funding studies abroad due to their flexible repayment options, quick approval process, and maximum coverage. 

Both lenders have some differences in interest rates and loan amounts, to moratorium options and university coverage, so you should compare them closely before deciding on one. In this blog, we compare Tata Capital vs Credila on various parameters, so that you can select an education loan that is better suited to your study abroad.

Overview of Tata Capital Abroad Education Loan

  • Tata Capital is an NBFC from the Tata Group and extends education loans for studies abroad.

  •  With its large loan amount, long repayment terms, and convenient service, it helps students with tuition fees and covers major expenses, including living expenses. 

  • Tata Capital is a good choice for those seeking substantial loan amounts from a reputable lender.

Overview of Credila Abroad Education Loan

  • Credila is the only lender in India that specializes in education loans and offers customized services.

  • Credila focuses on education loans for deserving students looking to study overseas.

  • Credila offers flexible repayment terms and instant approval for universities worldwide.

  • It offers reasonable rates and can cover tuition, living, and travel expense,s making it an attractive option for students looking for a study abroad loan.

Key Features of Tata Capital Abroad Education Loan

Loan Parameter

Details

Interest Rate

Starts from 11.30%

Loan Tenure

Up to 13 years

Maximum Loan Amount

Up to 2 cr (With Collateral)

Up to 85 lakhs (Without Collateral)

Collateral Requirements

Property such as a house, flat, or non-agricultural land, or a Fixed Deposit

Moratorium Period

Course duration plus 12 months

Repayment Tenure

Up to 13 years

Processing Fees

1% of the loan amount

Expenses Covered

  • Admission Fee

  • Tuition Fee

  • Hostel/ Living Expenses

  • Examination/Library Fee

  • Purchase of books

  • Purchase of a laptop/computer

  • Travel expenses

  • Health insurance

  • Travel insurance

Key Features of Credila Abroad Education Loan

Loan Parameter

Details

Interest Rate

Start from 9.95% for secured education loan

Starts from 10.75% for unsecured education loans

Maximum Loan Amount

With collateral - no upper limit

Without collateral - Based on eligibility

Moratorium Period

Course Duration plus 12 months

Collateral Requirements

Property such as a house, flat, or non-agricultural land, or a Fixed Deposit

Repayment Tenure

Up to 15 years

Processing Fees

1.25% of the loan amount

Expenses Covered

  • Admission Fee

  • Tuition Fee

  • Hostel/ Living Expenses

  • Examination/Library Fee

  • Purchase of books

  • Purchase of a laptop/computer

  • Travel expenses

  • Health insurance

  • Travel insurance

Differences Between Tata Capital and Credila Abroad Education Loan

Loan Parameter

Tata Capital

Credila

Loan Amount

Up to 2 cr (With Collateral)

Up to 85 lakhs (Without Collateral)

With collateral - no upper limit

Without collateral - Based on eligibility

Interest Rate

Starts from 11.30%

Start from 9.95% for secured education loan

Starts from 10.75% for unsecured education loans

Repayment Tenure

Up to 13 years

Up to 15 years

Processing Fees

1% of the loan amount

1.25% of the loan amount

Eligibility Criteria for Tata Capital and Credila Abroad Education Loan

The eligibility criteria for an education loan depend on the student's profile, country, type of loan they are taking, and the co-applicant's financial status.

Below are the common eligibility criteria for Tata Capital and Credila Abroad Education Loan

  • The applicant and the co-applicant should be Indian citizens.

  • The students' age should be 16 or older.

  • The student must have a strong academic history.

Documents Required for Tata Capital and Credila Abroad Education Loan

Basic Documents:

  • Application Form

  • Admission Confirmation

  • KYC Documents

  • Educational documents such as mark sheets and entrance exam results

  • Two recent passport-sized photographs

Financial Documents:

  • Income proof of the co-applicant

  • Six months of bank statements

  • Three months of salary slips

  • 2 years of ITR

  • Current financial obligations documents 

Property Documents:

  • 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.

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How to apply for an Education Loan from Tata Capital

Offline Process:

  • Visit the nearest branch and fill out the application form

  • Check the eligibility criteria and submit your documents

  • After this, the loan will be processed, and the loan amount will be disbursed.

Online Process through WeMakeScholars:

  • Fill in all the details in the loan application provided on our website.

  • Our Financial Officer will contact you within 2 days.

  • Once you receive a callback, provide all the details asked by our Financial Officer.

  • Our financial officer will check your loan eligibility and will connect you to Tata Capital.

  • Submit all the documents shared by our team in our WeMakeScholars document portal only.

  • Once you submit your documents, your file will be logged in.

  • Within 6 working days, you will receive your loan sanction letter from the bank.

How to apply for an Education Loan from Credila

Online Process through WeMakeScholars:

  • Fill in the details in the application form on our WeMakeScholars website.

  • Once you submit the application form, our Financial Officer will contact you.

  • Provide all the details regarding your loan, and our Financial Officer will analyse your profile and check your eligibility.

  • After this step, submit your documents, which will be shared by your financial officer on our WeMakeScholars website only.

  • Your file will be logged in. Once the login is created, you can check your loan application status.

  • You will get your loan sanction letter within 6 working days.

You can always contact your financial officer to know about your education loan status.

Benefits of Going through WeMakeScholars

Applying education loan on your own can be a little complicated due to problems like complex documentation work, multiple visits to the bank, poor customer service, lack of knowledge on loan terms. Going through WeMakeScholars can help you get you education loan without any hassle. Some of the benefits are:

  • Expert Advise

  • End-to-End Support

  • Faster Processing Time

  • Negotiation Support

  • Digitalized Process

How to Choose the Right Lender for your Abroad Education Loan

  • In choosing between Tata Capital and Credila, always look beyond the initial interest rate. 

  • First, ask both lenders for personalized rates, as the final amount depends on factors such as your admission university, co-applicant income, credit score, and collateral.

  • If you need a very large loan amount for countries like the U.S. or the U.K., then Tata Capital can be an excellent choice because of its higher loan limit. 

  • But if you’re looking for quicker processing, more global university coverage, and a flexible repayment plan, Credila often proves to be a more student-friendly option. 

  • Check the overall cost of borrowing and not just the interest rate. In the end, see how soon each lender can disburse money.

Conclusion

Before you select a lender, compare the interest rate, total loan cost, coverage of loans, processing time, moratorium benefits, and repayment flexibility. Verify if the lender supports your country, college, and program, and read through all their fees, such as processing fees and prepayment conditions. Always predict your EMI and total repayment amount, and apply in advance to avoid any last-minute hassles.