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Read GyanDhan’s comparative guide on Credila vs UBI education loans. Learn the hidden differences and the best lender for you.
Imagine securing an education loan of up to INR 40 lakh from a public sector bank in India without any collateral and interest rates ranging from 9% to 10.5%. Sounds impressive, right? Now, consider the added advantage of availing tax benefits under Section 80E when opting for an education loan from a Non-Banking Financial Company (NBFC) like Credila.
But which is the best lender? Which lender offers the best education loan deal? This confusion is a common scenario many students face when deciding between the Union Bank of India and Credila. The choice between these two giants in the education loan market is confusing since choosing between a public bank and an NBFC is not just about interest rates, it’s about flexibility, tax savings, and repayment comfort. To help you make an informed decision, this blog offers a comparative analysis of the top four differences between Credila and UBI.
Union Bank of India (UBI), being a public bank, offers various banking services along with education loans, making it a more rounded financial solution. In contrast, Credila, a Non-Banking Financing Company, is focused solely on education loans, offering tailored solutions for students.
Feature | Union Bank of India (UBI) | Credila |
---|---|---|
Type |
Public Sector Bank |
Non-Banking Financial Company (NBFC) |
Services |
Comprehensive financial services, including savings and fixed deposits |
Specializes in education loans only |
Regulation |
Regulated by RBI |
Regulated by RBI |
Basis of difference | Union Bank of India (UBI) | Credila |
---|---|---|
Loan quantum |
Up to INR 1.5 crore (secured) Up to INR 40 lakhs (unsecured) |
Up to INR 1.5 Crore (Secured) Up to INR 70 Lakh (Unsecured) |
9% - 10.5% |
10.50% - 13% |
|
10% TO 15% |
Nil |
|
Processing fee |
INR 10,000 + GST |
0.75%-1.25% |
Course period + 12 months |
Course period + 12 months |
|
Repayment tenure |
15 years |
15 years |
Repayment during course period |
Not mandatory |
Simple / Partial interest |
Income tax benefits under section 80E |
Yes |
Yes |
No |
Yes |
When it comes to loan amounts, UBI can offer higher amounts due to its government backing. For collateral-based loans, both UBI and Credila can finance up to INR 1.5 crores. However, for unsecured loans, Credila offers a higher limit of INR 75 lakhs compared to UBI’s INR 40 lakhs.
Feature | Union Bank of India (UBI) | Credila |
---|---|---|
Maximum Loan Amount (With Collateral) |
Up to INR 1.5 Crores |
Up to INR 1.5 Crores |
Maximum Loan Amount (Without Collateral) |
Up to INR 40 Lakhs (for selected universities) |
Up to INR 75 Lakhs |
Interest rates are often the deciding factor when choosing an education loan. UBI offers lower interest rates starting at just 9%, making it an attractive option for those looking to minimize their repayment burden. Credila, on the other hand, starts at 10.50% but offers flexibility in loan structuring based on your profile.
Feature | Union Bank of India (UBI) | Credila |
---|---|---|
Interest Rate (Unsecured Loan) |
Starting @ 9.5% |
Starting @ 11.5% |
Interest Rate (Secured Loan) |
For listed universities - 9% For non-listed universities - 10.5% |
Starting @ 10.50% |
Eligibility for Lower Rates |
Pre-approved courses for unsecured loans |
Based on profile and credit score |
Processing fees can add to the overall cost of your loan. UBI charges a processing fee of INR 10,000 plus GST. On the other hand, Credila charges a percentage of the loan amount, which is generally non-refundable.
Feature | Union Bank of India (UBI) | Credila |
---|---|---|
Processing Fee |
INR 10,000 + GST |
0.75%-1.25% of the loan amount |
Choosing between UBI and Credila ultimately depends on your specific needs and priorities. Here's a quick recap to help you decide:
If neither lender meets your specific requirements, it's worth exploring other options. There are several banks, NBFCs, and even international lenders offering education loans without collateral or co-applicants.
Navigating the education loan process can indeed be overwhelming, but with GyanDhan by your side, it doesn't have to be. Our experts will guide you through every step of the process, ensuring a smooth and hassle-free experience. And if you hit a roadblock, we'll work directly with the lender's higher management to resolve any issues.
Ready to take the next step? Check your loan eligibility now!
The interest rate for secured education loans to study abroad starts from 9% at UBI. Whereas, for unsecured education loans to study abroad starts from only 9.5%.
The processing fee at Union Bank of India for education loans is INR 10000 + GST.
The current interest rate at Credila ranges from 10.5% to 13%.
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