When it comes to financing one’s higher education, selecting an education loan can help students make their academic dreams a reality without financially burdening themselves. In India, State Bank of India (SBI) and HDFC Credila are two of the most common and prominent education loan providers, as they provide students with good loan features, competitive interest rates, and various repayment options for students pursuing education in India or abroad.
Choosing whether to go with SBI or HDFC Credila can be difficult, as they each have unique benefits with respect to your needs related to Loan Amount, Course Type, Collateral, and among other things, repayment flexibility. SBI is a government-owned bank, and might have more limited locations across India, but they are also the largest bank in India. SBI has numerous schemes like PM Vidyalaxmi, Scholar Loans, and Global Ed-Vantage that encourage students from different categories. HDFC Credila, which is a specifically education loan provider touts a customer-centric approach offering quicker processing, paperless documentation, and competitive rates among other reasons to appeal to students compared to traditional financial institutions.
It is mid-2025 and with the evolving financial landscape and changed RBI guidelines, you will need to compare both lenders not only based on their education loan interest rates but also on eligibility, the tenure of the loan, margin money, required documentation and services offered by lenders. Whether you are a student wanting full funding for a foreign university’s expensive education or a professional also wanting to attend an Indian premier institution, keeping the differences between the two loans will help you choose between them.
This blog aims to provide a clear, easily understood, and impartial comparison of the SBI education loan and HDFC Credila education loan. When you complete reading this blog, you will have a good understanding of the loan that will suit your education pathway and the financial comfort of borrowing, so you can apply and start your education journey with confidence.
Loan Amounts and Eligibility Criteria Comparison Between SBI & HDFC Credila
When you take an education loan, it is important to consider the loan limits and eligibility. Both SBI and HDFC Credila offer attractive education loan options, but they do take different approaches to loan limits and determination of borrower eligibility. Here is a point by point comparison to help you to choose between the two loan options in 2025.
Loan Amounts
| Feature | SBI Education Loans | HDFC Credila Education Loans |
|---|---|---|
| Maximum Loan Amount | Up to Rs.75 lakh for studies in India (varies by course and institution) Up to Rs.3 crore under Global Ed-vantage Scheme for studies abroad Higher limits considered on case-by-case basis (up to Rs.1 crore for medical courses) | No fixed upper limit* Loans are customized as per the course fee and living expenses, including tuition fees, visas, study materials, etc. |
| Margin Money Required | Nil for loans up to Rs.4 lakh 5% margin for loans above Rs.4 lakh for India studies 15% margin for studies abroad | No margin money required, easing access to funds without upfront payments |
| Security/Collateral | No collateral for loans up to Rs.7.5 lakh Collateral required above Rs.7.5 lakh with parent/guardian co-borrower | Flexible collateral acceptance depending on loan amount and borrower profile Offers secured and unsecured loans |
Eligibility Criteria
| Criteria | SBI Education Loans | HDFC Credila Education Loans |
|---|---|---|
| Who Can Apply | Indian nationals admitted to higher education in India or abroad | Indian students pursuing UG, PG, or vocational courses in India or abroad |
| Academic Qualifications | Must have completed the prior education required for the course | Must meet academic criteria for UG or PG programs |
| Eligible Courses | Wide range: professional, technical, medical, management, and vocational courses | All courses including UG, PG, diploma, vocational, and professional courses |
| Eligible Institutions | Recognized universities and colleges, including IITs, IIMs, NITs, select foreign universities under Global Ed-vantage | All universities, colleges, and vocational institutes, both in India and abroad |
| Income Criteria | Open to all income groups, with interest subsidies available for families with income up to Rs.8 lakh (under PM Vidyalaxmi and other schemes) | Open to all income groups, eligibility and loan amount assessed individually based on borrower’s profile |
- SBI Education Loans are better suited for students who want government benefits such as subsidized interest rates and prefer loans that have fixed limits where government credit guarantees are important to smaller loan amounts.
- HDFC Credila is better suited for students requiring larger loan amounts with no margin money, who are not afraid to research very expensive education abroad or vocational courses and prefer to transact loans in a less formalized and more customized manner.
Interest Rates: SBI vs HDFC Credila
Interest rates are an important factor when evaluating which education loan to take out. The interest rates you see quoted from lenders are important because they will affect the total amount you pay towards your education loan over the term of the loan. In 2025, both SBI and HDFC Credila education loans were widely competitive education loan interest rates, although the structure and type of rate varied greatly. So, let’s take a look at the interest rates of two of the leading education loan lenders.
1. SBI Education Loan Interest Rates
SBI education loans are generally offered with floating rates based on the External Benchmark Rate (EBR), which means the rate is a function of the RBI repo rate. Essentially, what this means is that SBI’s interest rate can change with market fluctuations, whenever this is valid, any time during the loan’s term.
A. PM Vidyalaxmi Scheme:
- Rates start as low as 7.15% p.a. for select sub-schemes like PMVL-Utkarsh.
- Other variants under PM Vidyalaxmi range up to 8.65% p.a.
- These loans also come with interest subvention benefits for eligible candidates (especially those from lower-income families).
B. General SBI Student Loan:
- Floating rates around 9.15% to 10.15% p.a. depending on loan amount and collateral.
- Loans above Rs.7.5 lakh usually attract collateral and slightly lower rates.
- Additional 0.50% concession for girl students.
C. SBI Scholar Loan Scheme:
- Offers special rates between 7.15% to 7.90% p.a. for premier institutions like IITs, IIMs, and NITs.
2. HDFC Credila Education Loan Interest Rates
HDFC Credila utilizes a more flexible approach to interest rates and provides both floating and fixed rate loans in order to provide flexibility and convenience along the borrower.
A. Floating Interest Rates:
- Secured loans starting from 9.95% p.a.
- Unsecured loans starting from 11.25% p.a.
- Floating rates are assigned based on your credit profile and loan amount.
B. Fixed Interest Rates:
- If you take a loan for a period of 5 years or below: the fixed rate is the floating rate + 1%
- If you take a loan for a period over 5 years: the fixed rate is the floating rate + 1.5%
C. Other Charges:
- No prepayment charges or foreclosure charges so you are free to pay it back early.
- Up to 1.25% origination developer (plus GST), the origination developer charge is fairly common in private lending.
Key Differences
| Aspect | SBI | HDFC Credila |
|---|---|---|
| Interest Type | Floating (linked to EBR) | Floating and Fixed options available |
| Starting Interest Rate | As low as 7.15% (PM Vidyalaxmi), 9.15%-10.15% (General) | Secured loans from 9.95%, Unsecured from 11.25% |
| Interest Subvention | Yes, for eligible low-income borrowers | No official subvention scheme |
| Prepayment Charges | Nil | Nil |
| Rate Flexibility | Depends on RBI repo rate changes | Fixed rate option available for stable EMIs |
Which Interest Rate Structure is Better?
SBI is the best choice for students seeking lower-rate loans backed by government interest subvention schemes, especially if they come from low-income families, or if they are applying under PM Vidyalaxmi or Scholar loans. However, lenders that factor rates in to EBR will mean that getting offered a loan at a floating rate means that the rate could go up and down during the course of the loan.
HDFC Credila suits borrowers who want flexibility in their repayment options, and an ability to lock-in a fixed rate loan to prevent raises in rates. It also offers loans without collateral and margin money for higher amounts, which can be attractive despite slightly higher starting rates.
Collateral and Margin Money Requirements: SBI vs HDFC Credila
When looking at education loan options available to you, it is important to note the collateral and margin money policies, as these can affect you in the documentation and processing phases, as well as in all follows up experiences with borrowing. SBI and HDFC Credila both have education loan options based on various Couples and margin money policies. Depending on the amount of the loan, and the borrower’s profile, education loans will clearly have different policies. Here is a breakdown of both lender’s requirements in 2025.
SBI Collateral and Margin Money Requirements
SBI loan schemes have collateral and margin requirements that clearly change depending on loan amount.
Collateral Security:
- Loans up to Rs.7.5 lakh: There is no collateral or third-party guarantee required. The only requirement is that the parent or guardian, as a co-borrower, is mandatory.
- Loans above Rs.7.5 lakh: Collateral Security required. This collateral would include immovable property or financial assets, and parent/guardian still must act as a co-borrower.
- For some schemes, loan amounts, like Rs.10 crore, collateral is a must.
Margin Money:
- Loans up to Rs.4 lakh: No margin money.
- Loans Rs.4 lakh to Rs.7.5 lakh: 5% margin money.
- Loans of amount greater Rs.7.5 lakh: No margin money.
- For studies abroad, margin money can be higher, up to 15%.
Additional Notes:
- SBI provides a 75% credit guarantee upto Rs.7.5 lakh on loans under the PM Vidyalanxmi Scheme which essentially removes collateral issues for smaller loans.
- The same applies for the collateral documents, which cannot have ambiguity and dispute, which adds some processing time due to volumes in using larger loans.
HDFC Credila Collateral and Margin Money Requirements
HDFC Credila provides a borower-friendly and flexible approach to collateral and cash margin.
1. Collateral Security:
Credila provides unsecured loans (no collateral) in many cases, especially for loan amounts up to a defined limit for credit assessment. For larger loan amounts, collateral is normally required, however the bank provides flexible collateral options including immovable property, fixed deposits or co-borrower income. Co-borrowers can be from multiple cities providing even more flexibility to families.
2. Margin Money:
HDFC Credila does not require margin money on most loans, regardless of size, which is a significant positive versus banks and for students who do not have money available up front.
3. Additional Remarks:
HDFC Credila provides underwriting based primarily on borrower credit and co-borrower credit worthiness which allows for oversight in collateral requirements. Loans are processed by a national pan -India branch network which also allows for reasonable sanction or disbursement time frames given that collateral is not held in many instances.
| Feature | SBI | HDFC Credila |
|---|---|---|
| Collateral for loans ≤ Rs.7.5 lakh | No collateral; co-borrower (parent/guardian) required | Usually unsecured for smaller loans, credit-based |
| Collateral for loans > Rs.7.5 lakh | Collateral mandatory + co-borrower required | Collateral may be required; flexible options, multiple co-borrowers allowed |
| Margin Money | 0% up to Rs.4 lakh; 5% for Rs.4–7.5 lakh; 0% above Rs.7.5 lakh (15% for abroad) | Generally no margin money required |
| Credit Guarantee | 75% credit guarantee by Govt. up to Rs.7.5 lakh | No government guarantee but flexible credit evaluation |
| Collateral Type | Immovable property, financial assets | Immovable property, FDs, income-based, co-borrower income |
Repayment Tenure and Moratorium Period: SBI vs HDFC Credila
When evaluating where to obtain an education loan, it’s important to understand the time to repay the loan and the moratirum period, as these are essential for your post-graduation finaincial planning. Both SBI and HDFC Credila offer flexible terms that are designed to minimize the repayment burden on both parents and students. Here is a complete comparison for example 2025:
| Feature | SBI | HDFC Credila |
|---|---|---|
| Moratorium Period | Course period + 12 months (1 year) | Course period + 12 months (1 year) |
| Repayment Tenure | Up to 15 years post-moratorium | Up to 15 years post-moratorium |
| Interest during Moratorium | Interest may accrue; interest subvention schemes available | Interest capitalized; option to pay interest during moratorium |
| Flexibility in Repayment | Standard EMI schedule; partial prepayment allowed | Customized repayment plans; no prepayment charges |
| Loan Takeover | Allowed | Allowed |
Processing Fees, Prepayment, and Foreclosure Charges: SBI vs HDFC Credila
When choosing an education loan, it’s important to consider not just the interest rates but also the associated fees and charges. These can significantly impact the total cost of your loan. Here’s a clear comparison of processing fees, prepayment, and foreclosure charges for SBI and HDFC Credila education loans in 2025.
| Feature | SBI | HDFC Credila |
|---|---|---|
| Processing Fees | Nil up to Rs.20 lakh; Rs.10,000+tax above Rs.20 lakh (varies) | Up to 1.25% of loan amount + GST |
| Prepayment Charges | Nil | Nil |
| Foreclosure Charges | Nil | Nil |
Which Education Loan is Better for You in 2025? SBI vs HDFC Credila
Securing the right education loan can influence the financial future we build for ourselves, while also pursuing our educational goal. Each bank (SBI and HDFC Credila) has rewarding education loan options, and which option is best for you will depend on your needs, preferences, and situation. Below is a simple guide to help you sort through your decision-making process:
- You need a government-backed loan, relatively easy to access: SBI has a government-backed pan -Indian presence. This will be good for you because, even in smaller towns and rural areas, you will have access to government-backed loans.
- You want lower/no processing fees for lower loan amounts: In general, if your loan amount is under Rs.20 lakh, SBI does not charge processing fees, thus saving you money.
- You want a loan related to a government scheme: SBI offers the PM Vidyalaxmi scheme and other government schemes with interest subsidies, credit guarantees, and moratoriums, especially for students from low and middle-income families.
- You want easy collateral options: SBI has collateral requirements. For loans of Rs.7.5 lakh or below, SBI will not require collateral or third-party guarantees. This makes it easier to be eligible for a loan.
- You want a longer moratorium and repayment options: SBI has a repayment tenure for a loan of up to 15 years and moratorium of course duration + one year.
When HDFC Credila Education Loan is Better for You
- If you want a simple, digital and customer-focused process, Credila provides a fully online application, fast credit appraisal and personalized service that will work for tech-savvy students and busy parents’s customers.
- If you want a loan for overseas education or major education expenses, whether it’s courses with no upper limit on loan amounts and varied collateral, Credila can finance expensive courses and living costs, regardless of location.
- If you prefer personalized interest rates, Credila will understand the education finance challenges you face and offer competitive floating and fixed interest rates based on your profile to save you money over time.
- If you want to be free from prepayment and foreclosure fees, you can pay the full amount, with no fees, so you can pay off your loan as fast as you can with Credila’s solutions.
- If you want pricing that is clear and no hidden fees, Credila believes in “what you see is what you pay”, so you will know exactly where your fees and costs are coming from.
FAQs: SBI vs HDFC Credila Education Loan
Q. What is the maximum loan amount that is available by SBI and HDFC Credila?
A. SBI has maximum education loans for up to Rs.75lakh for studies in India and larger amounts under special schemes. HDFC Credila has no upper limit on education loan amount, depending on the profile of the applicant and cost of the course, etc.
Q. Is there any collateral or margin money required for loans from SBI and HDFC Credila?
A. SBI does not require collateral for loans up to Rs.7.5 lakh and above Rs.4 lakh there is margin money which is 5% for studies in India. HDFC Credila has collateral-free loans without margin money, but if you take a very large loan, you may have to provide collateral.
Q. What are the interest rates charged by SBI and HDFC Credila?
A. SBI education loan rates are variable, based on scheme which seems to be about 7% to 10.15%. HDFC Credila has floating rates starting at 9.95% for secured loans and 11.25% for unsecured loans, and they also have fixed rates.
Q. What is the repayment tenure for an education loan from SBI and HDFC Credila?
A. SBI and HDFC Credila have repayment tenures of up to 15 years after the moratorium period, which includes after you finish the course.
Q. Does SBI or HDFC Credila charge processing fees for education loans?
A. For loans below Rs.20 lakh SBI has no processing fees (above Rs.20 lakh SBI has a processing fee of Rs.10,000 plus taxes). HDFC Credila charges a maximum of 1.25% of the loan amount plus GST as origination fees.
Q. Can I prepay or foreclose my education loan with SBI or HDFC Credila without penalty?
A. SBI possibly has prepayment terms based on the scheme, generally, they will allow prepayment but you need to investigate the specifics. HDFC Credila does not charge prepayment or foreclosure penalties.
Q. Which bank is better for studying abroad loans—SBI or HDFC Credila?
A. SBI offers loans for abroad studies, they too have education loans but for large amounts they usually require higher margin money and collateral. HDFC Credila specializes in education loans for abroad studies, they have flexible terms with no ceiling on the amount.
Q. How easy is the application process for SBI and HDFC Credila education loans?
A. SBI offers an application by visiting the branch or through the PM Vidyalaxmi portal with some digitals features. HDFC Credila only offers fully online application and a simple 3 step process with a faster credit appraisal.