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Comparing Credila Vs Bank Of Baroda Education Loan (2025)

March 11, 2024 •

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The rivalry between private and public banks in issuing education loans has always been interesting. It has contributed to the growth of the financial sector and resulted in many students achieving their academic goals. Credila Vs Bank Of Baroda is a battle between two heavyweights on either side, and this article will clarify which is better between the two.

Particulars	Bank Of Baroda Education Loan	Credila
Interest Rates	8.5% – 13.7%	From 9.50% p.a.
Maximum Loan Amount	Up to Rs. 150.00 lakh	Up to Rs.10 lakh
Moratorium Period	Course period + 3 Months – 1 Year	Course period + 12 Months
Repayment Terms	10 – 15 years	Up to 15 years
Margin Money Charged	Up to 15%	No margin money
Processing Fees	Up to 1% of the loan amount	Up to 1% of the loan amount

Eligibility Criteria

All applicants must meet the stated requirements to be considered for education loan disbursement. This is where you can notice differences between an education loan offered by the Bank of Baroda and one from Credila. The eligibility criteria to qualify for an education loan from either bank include the following:

Bank	Eligibility Criteria
Bank Of Baroda	-Must be an Indian national -Must secure admission to professional/technical courses abroad \| in The Executive Development Programmes offered by premier institutions abroad -Must be and should remain gainfully employed (specific to the loan type)
Credila	-Must be residing in India -Must be between the ages of 16 – 35 years -Must have a co-applicant, e.g., parent/guardian -Must be pursuing a postgraduate degree or postgraduate diploma -Must have attained admission to a reputable institution

Interest Rates

Interest rates charged on repayment of student loans can attract or dismiss applicants. Students shy away from higher interest rates as it might interfere with their ability to pay their education loans. The difference in interest rates between the Bank of Baroda and Credila is shown in the table below.

Bank	Interest Rates
Credila	From 9.50% p.a.
Bank of Baroda	8.5% – 12.2%

You can utilise a student loan repayment calculator to help you determine the probable interest charged on your education loan.

Processing Fee

Lenders charge processing fees on education loan applications. These costs cover the legal and operational charges necessary for finalising the application. There is an almost identical processing fee for an education loan offered by Credila Bank and one from Bank of Baroda.

Bank	Processing Fees
Credila	Up to 1% of the Loan Amount
Bank of Baroda	-Up to Rs.7.50 Lakh: NIL-Up to 1% of the Loan Amount (will be refunded after first loan disbursement)

Maximum Loan Amount

When determining which bank is best, Credila or Bank of Baroda, consider the loan amounts given by each. With the cost of studying abroad increasing yearly, it is essential to consider a bank that will provide you with high loan amounts. However, loan amounts are influenced by the securities you’ve put in place of your loan.

Bank	Maximum Loan Amount
Credila	Up to Rs.10 lakh
Bank of Baroda	Up to Rs. 150 lakh

Moratorium Period

Banks expect you to wait to start paying off your loan. You must finish your higher education and get an additional period before the banks begin to request payments. The period of the moratorium on education loans for Bank of Baroda and Credila is as follows:

Bank	Moratorium Period
Credila	Course period + 12 Months
Bank of Baroda	Course period + 3 to 12 Months

Margin Money Charged

Margin money is required by lenders, such as Bank of Baroda, who only partially pay for your studies abroad. This is because they only cover specific expenses and need you to cover the rest. However, banks that cover 100% of your studies, like Credila, don’t require a money margin. Bank of Baroda charges margin money of up to 15% depending on the loan amount.

Repayment Terms

Most banks, whether private or public, have a specific repayment term. Repayment of multiple student loans is tapped at 15 years, although specifications depend on the lender. The Bank of Baroda vs Credila education loan repayment terms are shown in the table below.

Bank	Repayment Terms
Credila	-10 years for loans up to 7.5 Lakhs -15 years for loans above 7.5 Lakhs
Bank of Baroda	Maximum 10-15 years

Types Of Collateral

The collateral for securing the Bank of Baroda vs Credila abroad education loan is addressed differently. Bank of Baroda considers the value of the collateral, while Credila considers what the collateral is. The table below clarifies the types of collateral required by both banks.

Bank	Types of Collateral
Credila	-Moveable: HL with Fixed Deposit with Credila or -Immoveable Collateral: House, Flat, Bungalow, Shop, Land (Non-Agricultural), etc.
Bank of Baroda	-No collateral/co-obligation of a parent for specific amounts -Collateral security of 100% of the loan amount for certain loans -Total security coverage should be 1.25 times the loan amount for specific loans

Countries Each Bank Caters To

Both Bank of Baroda and Credila are internationally recognised banks operating in various countries. However, specific benefits only apply to Indian residents as the headquarters are in the country.

Bank	Countries Covered
Credila	UAE, Bahrain, Hong Kong, and Kenya
Bank of Baroda	Australia, Malaysia, Thailand, United States, United Kingdom, United Arab Emirates, Zambia, Uganda, Kenya, Tanzania, New Zealand, Botswana, Oman, Singapore, Seychelles, South Africa, Mauritius, Fiji Islands, and Belgium.

Which Of The Two Is UniCreds’ Partner?

UniCreds can help you get education loans from both banks, provided you have an excellent financial score and bank with the institution. Often, depending on the client, it all comes to specifications when deciding between Bank of Baroda or Credila is better.