Credila vs. Axis Bank: Education Loans Key Features Comparison

According to the Ministry of Finance, the Indian financial market witnessed INR 28,699 crore worth of education loans disbursed in the financial year 2023-24. The situations are positive for students planning their study abroad with an education loan, and the crucial thing is selecting the lender who offers the best education loan.

Axis Bank and Credila are two prominent lenders in the Indian market for study abroad loans. Both lenders offer education loans under different categories, but which is better depends on your eligibility and personal preferences.

Difference Between Credila vs. Axis Bank Education Loans

Both of these loans differ in terms of loan amount, rates of interest, and repayment tenure. Apart from the above-mentioned differences, there are certain categories of loans with both Credila Education Loan and Axis Bank Education Loan.

Axis Bank Education Loan 

Founded in 1993, Axis Bank is a prominent private sector bank with 5,706 branches across the states and Union Territories in India. Education loans from the Axis Bank start from INR 50,000 and fund the higher education of eligible applicants with or without collateral security at affordable interest rates.

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  The education loans help students study in Axis Bank-listed institutions.
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  Education loans for working professionals (up to INR 40 Lakhs) are available
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  Generally, due to their internal benchmark lending rate difference, Axis Bank education loans have lesser fluctuations in interest rates compared to many other lenders like Credila. The internal components, like MCLR*, are charged accordingly to avoid differences in the effective interest rate. 
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  No cap for loan amounts is there if the collateral value is sufficient
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  Central Sector Interest Subsidy Scheme is available for education loans

*MCLR: The MCLR or Marginal Cost of Funds Based Lending Rate is the benchmark interest rate below which banks can’t lend. The RBI introduced it in 2016 to make the lending process more democratic and uniform for all lenders. 

Credila Education Loan

Credila became a dedicated NBFC for education loans in 2006, later becoming the oldest NBFC in India for education loans. Features of Credila include the following:

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  The education loan covers 5,000+ institutions across 64 countries
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  High amounts of unsecured education loans can be availed
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  Credila allows for semi-collateral education loans 
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  Credila offers education loans for working professionals to study an executive MBA

Credila vs. Axis Bank Education Loans Key Features Comparison

Noticeable common features for education loans by Axis Bank and Credila include options for secured vs. unsecured education loans and tax benefits under section 80 E. The table below gives you a comparative overview of the features of education loans by Axis Bank and Credila to study abroad: 

*Interest rate as of April 2025

The major differences between Axis Bank and Credila include the range of loan amounts, interest rates, and eligible countries and institutions. To decide your lender, dive deep into the unique features, mandatory conditions, and details of abroad education loans by Axis Bank and Credila, which begins with familiarizing with the lenders.

Credila vs. Axis Bank: Loan Amount Limit 

The maximum loan amount that you can secure from Axis Bank is INR 1 crore for secured education loans. For unsecured education loans, Axis Bank offers up to INR 75 lakhs. However, Credila education loan amount varies between INR 20 lakhs - INR 75 lakhs for different countries and courses as listed below: 

Make sure your university is listed by Axis Bank or Credila for study abroad loans. If not, negotiate with the lender based on the academic and financial weightage your application has.

Interest Rates for Credila and Axis Bank Education Loans

Education loan interest rates can be fixed or floating, according to the lender’s decision, based on the market conditions. The interest rates for Axis Bank ranges between 9.99% - 10.50% for secured loans. In case of education loans without collateral, interest rates ranges between 10.75% to 11.5% for Axis Bank.

Credila education loan interest rates fall between 10.5% - 13%, varying with countries, as in the table below: 

*Interest rate as of April 2025

For both lenders, the interest has to be paid during the moratorium period. Axis Bank offers Simple Interest (SI), and Credila offers Simple or Partial Simple Interest (PSI) on education loans.

Axis Bank Vs Credila Education Loan Repayment Tenure

While selecting, ensure the education loan offers enough time to repay the loan. The repayment tenure for the Axis Bank education loan is 15 years, including the moratorium period, while the same for the Credila education loan is 12 - 15 years, including the moratorium period. However, the repayment tenure is flexible and can be trimmed or extended after negotiations with the lender.

Types of Education Loans by Axis Bank and Credila

Education loans can be taken against collateral security or co-applicant income, depending on your eligibility and situation. Here are the details of secured and unsecured education loans by Axis Bank and Credila to help you decide which is more suitable.

Secured Education Loans from Axis Bank and Credila:

Secured education loans by Axis Bank, funds up to INR 1 crore. The interest rate starts from 9.99% onwards for secured education loans

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  For residential properties, the maximum loan amount can be up to 85% of the collateral value if the co-applicant is salaried and up to 75% if the co-applicant is self-employed.
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  For commercial properties, the maximum loan amount can be up to 50% of the commercial property value.
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  For fixed deposits, students can get up to 90% of the fixed deposit value, and the fixed deposit must be in the Axis Bank account.

Secured education loan by Credila funds 100% of the study-related expenses if the collateral value is sufficient. For secured education loans from Credila, the co-applicant can be any relative of the applicant, whereas Axis Bank mandates the co-applicant to be someone from the student’s close family.

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  The interest spread is fixed based on the collateral submitted, meaning that the interest rate can be lower if the collateral value is high and the risk factor is lower. 
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  The following can be the collateral for an education loan from Credila:

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    Residential flat or house
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    Non-agricultural land
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    A fixed deposit, assigned in favor of Credila
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    second charge property
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    Commercial property - shop

Unsecured Education Loans From Axis Bank and Credila

Axis Bank unsecured education loans: As mentioned earlier, up to INR 75 lakhs is available for listed institutions. Generally, the course of study must be STEM or MBA for unsecured loans to study abroad.

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  The co-applicant must be from the immediate family, who can be the applicant's father, mother, sibling, or spouse. 
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  The co-applicant must earn an income of at least INR 35,000 per month without any obligations.

Credila unsecured education loans: Credila offers unsecured education loans of high amounts based on the co-applicant's income. Compared to Axis Bank, the list of eligible universities is flexible for Credila.

Depending on the country and course (STEM or non-STEM), the minimum co-applicant income requirement varies between INR 20,000 to INR 50,000 without any obligations.

GRE Score-Based Education Loans by Axis Bank And Credila 

Axis Bank and HDFC Credila offer education loans for studying abroad based on your GRE scores. A high GRE score can help you get a higher loan amount, lower interest rate, and better repayment terms from Axis Bank. However, how much benefit you get depends on your overall profile, including your university and financial background.

HDFC Credila gives extra advantages if your GRE score is 320+ (or GMAT 700+) and you get admission to a top 100 QS-ranked university:

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  You may get a loan without a co-applicant
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  You can get a 0.5% interest rate discount if your co-applicant also has a high income

Axis Bank Vs Credila: Which Is Better?

Determining the better option among education loans from Axis Bank and Credila depends on various factors concerning your situation and eligibility. You may go through the loan terms mentioned above to make an informed choice.

The following are some observations regarding education loans by Axis Bank vs. Credila that may help you with a better selection:

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  In secured education loans, Axis Bank offers better interest rates compared to Credila. However, the property valuation time is longer for Axis Bank compared to Credila.
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  For unsecured education loans for universities listed under Prime categories, Axis Bank offers lower interest rates with lesser fluctuations and longer repayment tenure than Credila.
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  Axis Bank may require a local guarantor, whereas Credila has less physical presence and does not require a local guarantor.
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  Credila is more flexible with co-applicant requirements, documentation, and country and course of study than Axis Bank.

Generally, banks can be prioritized over NBFCs for education loans due to lower interest rates and higher acceptance rates for visa applications. Note that not all countries accept education loans from NBFCs for visa purposes. In that context, an education loan from Axis Bank has more weightage than one from Credila.

However, as it is case-specific to determine the best education lender from Axis Bank and Credila, you may get in touch with us to find the best education loan for you. We will evaluate your profile and suggest the best option. Check your education loan eligibility for more details.

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