Credila vs. Avanse: Which is Better for Education Loans?

Non-Banking Financial Companies (NBFCs) have made a significant impact on the Indian market for study abroad education loans since their establishment. According to CRISIL (Credit Rating Information Services of India Limited), education loans provided by NBFCs are expected to grow by 15% to 17% in the financial year 2025–26.

 

Two prominent players in the NBFC space catering to the higher education aspirations of Indians are Credila and Avanse. Unlike many traditional banks that require collateral for loans exceeding INR 7.5 Lakh, these NBFCs offer flexible options. Students can avail of education loans for higher amounts, either with or without the need for collateral security, making the dream of studying abroad more attainable for many.

Education loans offered by Credila and Avanse share many common features. They cover 100% of your expenses, unlike education loans from banks. You can get secured or unsecured education loans of high amounts, but collateral security is mandatory for bachelor’s courses.

 

See the table below for a comparison of Avanse vs Credila education loan features:

*Interest rate as on April 2025

 

As the table shows, the features of education loans by Credila and Avanse are almost the same. Let’s see the unique features of both lenders to decide which is better for you. 

Credila Education Loan:

Founded in 1977 for housing loans, Credila became a dedicated NBFC for education loans in 2006, making it the oldest NBFC in India dedicated to education loans. The following points explain what makes Credila unique:

 

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  Credila offers education loans for 5,000+ institutions across 64 countries.
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  Offers education loans against properties mortgaged with HDFC Bank.
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  Semi-collateral education loans are possible.
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  For select countries, such as the US, Credila offers education loans without a co-applicant for applicants with 310+ GRE scores and work experience.
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  Education loans from Credila give tax benefits under section 80 E of the income tax act.

Credila Review:

An applicant, aged 38, faced challenges in securing an education loan due to age-related criteria often imposed by lenders. However, GyanDhan successfully assisted him in obtaining an unsecured loan from Credila. 

Avanse Education Loan:

Founded in 2013, Avanse Financial Services offers customized education loans for deserving students to study abroad. The major features of Avanse include the following: 

 

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  Avanse offers education loans for 3,000+ institutions across 50+ countries.
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  Education loans by Avanse are highly flexible for the student.
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  The acceptance rate is higher for Avanse than any other lender of education loans. 

Avanse Education Loan Review:

A student faced multiple rejections from lenders due to a poor CIBIL score. Despite these setbacks, team GyanDhan helped her secure a loan from Avanse, even without an offer letter. Understanding her financial challenges, we also assisted with a partial processing fee, with the rest to be paid after receiving the admission letter.

 

Interest rates are a crucial factor when selecting an education loan, as they determine the total cost of borrowing and affect your repayment amount. Both Credila and Avanse offer floating interest rates for education loans, which means that the rates can fluctuate over time based on market conditions.

 

Floating interest rates are variable and can change periodically. They are linked to a benchmark rate such as the Marginal Cost of Funds based Lending Rate (MCLR) or the Repo Rate set by the Reserve Bank of India (RBI).

 

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  Credila education loans: Interest rates vary between 10.5% - 13%. 

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  Avanse education loans: interest rates vary between 9.75% - 13.5%. 

See the table below for country-specific interest rates on education loans by Credila and Avanse: 

*Interest rate as of April 2025

 

The interest has to be paid in the moratorium period. Generally, the interest rates are lower for STEM courses and are flexible for students with high academic merits and co-applicant income.

 

When selecting an education loan, the country and course of study can significantly influence the loan terms and conditions. Credila and Avanse both offer customized loan packages that consider the specific financial requirements associated with studying in different countries. The maximum loan amount offered by these lenders can vary based on the country of study due to differences in tuition fees, cost of living, and other expenses. Since the cost of study and living is different, the maximum loan amount changes for different countries abroad.

 

Here is the list of top countries to study abroad and the maximum loan amount by Credila and Avanse. Under the maximum amount, you can see the minimum income of the co-applicant (known as FOIR - Fixed Obligation to Income Ratio) required for an unsecured education loan.

Note: For the top 100 QS-ranked universities, Avanse can offer education loans up to INR 40 Lakh.

 

An important factor in selecting an education loan is its repayment tenure. Credila and Avanse offer a longer repayment period of 12 - 15 years. The repayment will be in Simple Interest (SI) or Partial Simple Interest (PSI), depending on various factors such as the country and course of study. The repayment period includes the moratorium period.

 

Generally, STEM courses are given the option of PSI, whereas non-STEM courses are given the option of SI. The interest repayment starts after the loan is disbursed. 

Credila and Avanse benefit the students in their ways. Deciding which is better for you depends on your eligibility and preference. However, the following points may help to decide which is better for you between Credila and Avanse:

 

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  If you get admission to a top institute abroad, Credila can be your first preference since it gives you comparatively lower-interest education loans with tax benefits.
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  Education loans by Credila are available for more states and Union Territories in India compared to Avanse.