Studying in India or abroad is a dream for many students, but education today comes with a high cost. To make this dream possible, many students depend on education loans. However, choosing the right lender is very important because every lender offers different features, interest rates, and repayment options.
Two popular names among education loan providers in India are Credila (formerly HDFC Credila) and Tata Capital. Both are trusted NBFCs (Non-Banking Financial Companies) offering education loans for students who want to study in India or abroad.
In this blog, we’ll help you understand the difference between Credila vs Tata Capital education loans. We’ll compare them in terms of interest rates, eligibility, repayment options, and loan features — with real examples and easy calculations.
About Credila Education Loan
Credila, a part of the HDFC group, is one of India’s first NBFCs that focuses only on education loans.
It provides loans for students who want to pursue higher education in India or abroad.
Key Features of Credila
- Loan available for both Indian and foreign universities.
- Can cover up to 100% of education expenses.
- Loan tenure can go up to 15 years, which reduces EMI pressure.
- Both secured and unsecured loans available.
- Processing time: around 5–7 working days after documentation.
- Can finance tuition, accommodation, travel, and equipment costs.
- Offers flexible tranche disbursement (money released in parts when needed).
About Tata Capital Education Loan
Tata Capital is a well-known financial services company under the Tata Group. It provides a wide range of loans, including education loans for students studying in India or abroad.
Key Features of Tata Capital
- Offers loans up to ₹85 lakhs without collateral and up to ₹2 crores with collateral.
- Covers tuition fees, accommodation, books, laptop, and travel expenses.
- Interest rates start from around 11% per annum.
- Tenure usually up to 10 years.
- No prepayment or foreclosure charges, allowing early repayment.
- Processing time is around 7–15 working days.
Detailed Comparison: Credila vs Tata Capital Education Loan
| Feature | Credila | Tata Capital |
| Type | NBFC focused only on education loans | Diversified NBFC offering multiple loan types |
| Interest Rate (approx.) | 9.5% – 13% (floating) | 11% – 13.5% (floating) |
| Maximum Loan Amount | Up to 100% of education cost | ₹85 lakhs (unsecured) / ₹2 crores (secured) |
| Loan Tenure | Up to 15 years | Up to 10 years |
| Processing Time | 5–7 working days | 7–15 working days |
| Moratorium Period | Course duration + 12 months | Course duration + 12 months |
| Collateral Requirement | Optional (based on amount) | Optional up to ₹85 lakhs |
| Prepayment Charges | May apply | None |
| Processing Fee | 0.75% – 1.25% | Up to 2% |
| Focus Area | Education loans only | General loans including education |
Example 1 – ₹20 Lakh Loan for 10 Years
Let’s compare how much a student would pay for the same loan amount under both lenders.
| Details | Credila | Tata Capital |
| Loan Amount | ₹20,00,000 | ₹20,00,000 |
| Interest Rate | 10.5% p.a. | 11% p.a. |
| Tenure | 10 years | 10 years |
| EMI | ₹27,500 approx. | ₹28,500 approx. |
| Total Amount Paid | ₹33,00,000 | ₹34,20,000 |
| Total Interest Paid | ₹13,00,000 | ₹14,20,000 |
💡 Conclusion: In this case, Credila’s slightly lower rate saves about ₹1.2 lakh over 10 years.
Example 2 – ₹50 Lakh Loan for 15 Years (Long Tenure)
| Details | Credila | Tata Capital |
| Loan Amount | ₹50,00,000 | ₹50,00,000 |
| Interest Rate | 11% p.a. | 11.5% p.a. |
| Tenure | 15 years | 10 years |
| EMI | ₹57,900 approx. | ₹70,000 approx. |
| Total Repayment | ₹1.04 crore | ₹84 lakh |
| Total Interest Paid | ₹54 lakh | ₹34 lakh |
📊 Insight:
Credila offers longer tenure, which reduces monthly EMI pressure but increases total interest cost. Tata Capital gives shorter tenure, leading to higher EMIs but lower total interest overall.
Pros and Cons
✅ Credila Education Loan – Advantages
- Dedicated NBFC for education loans only.
- Long repayment tenure (up to 15 years).
- Flexible disbursement and repayment options.
- Can finance 100% of education cost.
- Available for both domestic and international courses.
❌ Credila Education Loan – Disadvantages
- Processing fees may apply (around 1%).
- Floating interest rates may increase over time.
- Interest accrues during the study period.
- Prepayment charges may apply.
- Some students report documentation delays.
✅ Tata Capital Education Loan – Advantages
- No prepayment or foreclosure charges.
- Quick processing (7–15 working days).
- Clear and transparent fee structure.
- High unsecured loan limit (up to ₹85 lakhs).
- Trusted brand and flexible repayment options.
❌ Tata Capital Education Loan – Disadvantages
- Slightly higher starting interest rate.
- Maximum tenure only up to 10 years.
- Penal interest for late payments (around 3%).
- Less specialized in education loans.
Example Calculation – Study Abroad Case
Let’s assume a student takes a ₹35 lakh loan to study abroad for 2 years.
| Details | Credila | Tata Capital |
| Loan Amount | ₹35,00,000 | ₹35,00,000 |
| Interest Rate | 10.75% | 11.25% |
| Tenure | 10 years | 10 years |
| EMI | ₹47,500 | ₹48,800 |
| Total Repayment | ₹57,00,000 | ₹58,56,000 |
| Total Interest | ₹22,00,000 | ₹23,56,000 |
📘 Result:
The total cost difference is around ₹1.5 lakh. While Tata Capital charges slightly more interest, it gives the flexibility of no prepayment penalty, so students can close the loan early and save money.
Eligibility Criteria (General)
For Credila
- Indian citizenship.
- Admission to a recognized university in India or abroad.
- Co-applicant (parent/guardian) with a steady income.
- Good academic record.
For Tata Capital
- Indian nationality.
- Confirmed admission to an eligible course.
- Co-applicant with regular income.
- Valid KYC, academic, and admission documents.
Documents Required
| Document Type | Examples |
| Identity Proof | Aadhaar card, PAN card, passport |
| Address Proof | Electricity bill, rental agreement |
| Academic Proof | 10th, 12th, graduation marksheets |
| Admission Proof | Offer letter, university ID |
| Income Proof (Co-applicant) | ITR, salary slips, bank statements |
| Collateral Proof (if applicable) | Property papers, FD certificates |
Tips to Choose the Right Education Loan
- Compare Interest Rates: Even a 0.5% difference can save lakhs over the tenure.
- Check Processing Fees: Some lenders charge up to 2%.
- Understand Moratorium Period: Know when repayment starts and whether interest accrues during study.
- Prefer No Prepayment Penalty Loans: Helpful if you plan to repay early.
- Check Tenure Flexibility: Longer tenure means smaller EMI but more interest.
- Use EMI Calculators Online: To plan your monthly budget.
- Negotiate with Lender: Sometimes you can get lower processing fees.
- Keep Documents Ready: Helps speed up loan approval.
- Choose Trusted Lenders: Avoid unknown companies or high hidden charges.
- Read Loan Agreement Carefully: Don’t skip the fine print.
Which is Better – Credila or Tata Capital?
- Choose Credila if you:
- Need a longer repayment tenure (up to 15 years).
- Want 100% financing including living and travel expenses.
- Prefer a lender specializing only in education loans.
- Need a longer repayment tenure (up to 15 years).
- Choose Tata Capital if you:
- Want no prepayment or foreclosure charges.
- Need faster approval and disbursement.
- Want a high unsecured limit without collateral.
- Plan to repay early after getting a job.
- Want no prepayment or foreclosure charges.
Both are excellent options, but the right one depends on your loan amount, repayment capacity, and study plans.
Also Read: Education Loan Sanction Letter: A Comprehensive Guide
Final Thoughts
Both Credila and Tata Capital offer great education loan products with unique benefits.
Credila is better for students looking for long-term flexibility, while Tata Capital suits those wanting faster processing and no prepayment fees.
Before you apply, always:
- Compare multiple lenders,
- Use online EMI calculators, and
- Read all terms carefully.
Choosing the right education loan can make your academic journey smooth and stress-free, allowing you to focus on your studies instead of worrying about money.