When it comes to loans for study abroad, most Indian students tend to lean towards public and sometimes private sector banks. There is another option that is gaining traction – NBFCs (Non-Banking Financial Companies) such as Credila and Avanse offer loans with several compelling advantages.
In this article, I will share every detail about study abroad loans from Credila and Avanse. I will cover interest rates, tenure, and all other facts so that you can make an informed decision.
Credila and Avanse Education Loans: An Overview
Credila (formerly HDFC Credila) is India’s first dedicated education loan company. HDFC still maintains a 9.99% stake. It provides both secured and unsecured loans for thousands of Indian students. Since it focuses solely on education loans, it understands the nuances unlike banks that offer a gamut of loan products.
Avanse Financial Services is an NBFC that also specializes in student loans. Avase is French for “to advance,” and the company is rapidly making a name for itself in the education financing sector.
Credila vs Avanse Education Loans: Interest Rates
Without doubt, interest rates are the most important factor to consider when taking loans. Both Credila and Avanse offer very attractive interest rates.
Credila Finance
Credila offers some of the lowest starting interest rates in the NBFC category for secured loans.
Floating rates typically start from 9.95% p.a. for secured loans and 11.25% p.a. for unsecured loans.
Fixed rates are between 1% – 1.5% higher than the floating rate, depending on the student profile and tenure.
Avanse Finance
Avanse Finance offers secured education loans for study abroad at a 10.25% interest rate per annum.
Rates for unsecured loans begin at 11% per annum.
Credila vs Avanse Education Loans: Processing Fees and Upfront Costs
A processing fee is a one-time charge by lenders for handling educational loan applications. It is between 1% and 4% of the loan amount.
Credila Finance
Credila charges an origination fee of around 1.25% of the loan amount, plus 18% GST. A loan of ₹60 lakhs would attract a processing fee of ~₹75,000.
Avanse Finance
Avanse generally charges a one-time processing fee of 1% to 2% of the total loan amount. It is flat ₹999 for some short-term loan products.
Credila vs Avanse Education Loans: Repayment Terms and Tenure Flexibility
Loan tenure is important because it impacts your monthly EMI. As a rule of thumb, the longer the tenure, the lower the EMI.
- Credila offers flexible repayment options with a tenure of up to 15 years.
- Avanse offers a slightly longer maximum tenure of 17 years.
Keep in mind that a longer tenure translates to a costlier loan due to more overall interest payments.
Credila vs Avanse Education Loans: Moratorium Periods
Both Credila and Avanse offer a moratorium period that covers the course duration plus a grace period after completion.
- Credila allows students a lengthy 12-month moratorium. This is likely the lengthiest loan holiday by any bank or NBFC in India.
- Avanse Finance gives a moratorium lasting up to 6 months after course completion or 3 months after securing employment, whichever is earlier.
Credila vs Avanse Education Loans: Margin Money
Margin money is the amount you have to personally invest towards your cost of attendance. It might be significant. Such as a 10% margin money requirement for study at Stanford University, where the cost of attendance is $150,000 for an MS degree, would be a steep ₹13.35 lakhs.
Credila and Avanse do not require any margin money. You get 100% finance for their education loans covering tuition, living, and other costs.
Credila vs Avanse Education Loans: Collateral and Co-applicant Requirements
Indian banks offering education loans to study abroad often insist on collateral and a co-applicant. Credila and Avanse take a slightly different approach and relaxed rules about collateral requirements.
Credila Finance
- Credila education loan has strict requirements for co-applicants. Parents, siblings, and spouses are accepted as co-applicants.
- Credila offers both secured loans and unsecured loans. Loans secured with collateral, such as bank FD, house, and property, get better interest rates and loan terms.
Avanse Finance
- For Avanse, a co-borrower (usually a parent or guardian) with a stable income source in India is mandatory.
- Avanse offers secured loans up to ₹1.25 Cr for high-pedigree courses. For institutes that are ranked lower, collateral is required.
Credila vs Avanse Education Loans: Loan Amount Limits
HDFC Credila education loans for study abroad have no upper limit. Depending on your profile and future earning potential, you can borrow the entire cost of your studies.
Avanse offers a maximum amount of ₹1.25 crore as an education loan. It is enough to cover the cost of most degrees.
Credila vs Avanse Education Loans: Eligible Countries
Both Credila and Avanse support all major study destinations.
Credila has a strong presence across 30 countries. This includes the USA, UK, Canada, Australia, and much of Europe.
Avanse covers 50 countries and works with a large network of pre-approved universities and courses.
Credila vs Avanse Education Loans: Easy Comparison Table
This table provides a comparison of study abroad education loans from Credila and Avanse Financial Services.
| Feature | Credila | Avanse Financial Services |
| Specialization | India’s first dedicated education loan company with 9.99% HDFC stake. | NBFC with a focus on student loans |
| Interest Rate (Secured) | Starting from 9.95% p.a. | Starting from 10.25% p.a. |
| Interest Rate (Unsecured) | Starting from 11.25% p.a. | Starting from 11.00% p.a. |
| Processing Fee | ~1.25% of loan amount + 18% GST. | 1% to 2%
Flat ₹999 for some products. |
| Maximum Tenure | Up to 15 years. | Up to 17 years. |
| Moratorium Period | Course period + 12 months | Course period + 6 months (or 3 months after employment). |
| Margin Money | Nil | Nil |
| Loan Amount Limit | No upper limit (based on profile). | Up to ₹1.25 Crore. |
| Collateral Options | FD, house, property.
Secured loans get better rates. |
Collateral for lower-ranked courses. |
| Co-applicant Rules | Parents, siblings, or spouses only. | Parent/guardian with a stable income. |
| Country Coverage | 30+ countries | 50+ countries (Large network of pre-approved universities). |
Lender comparison is a single step in a lengthy process. Students also need assistance with understanding the loan technicalities and paperwork. At GradRight, we help you overcome all the hurdles with transparency, affordability, and precision.
Reach out today to secure the most competitive financial solution for your study abroad journey. Over 60,000 students have turned their international education dreams into a reality with GradRight.
Abhinaya Murthy faced numerous problems in securing an education loan to study in the UK. GradRight helped her get a loan to study an MSc in Media & Development at the London School of Economics.
Credila vs Avanse: Which Lender Serves Indian Students Better In 2026?
I can declare no clear winner, but here are a few key takeaways:
Credila is better if you are looking for the lowest possible interest rates on secured loans and want a long 12-month moratorium after your studies to find a job.
Avanse is more suitable if you want a very long tenure up to 17 years to keep EMIs small and manageable. Avanse also has a list of preapproved universities and courses.
