Education loans aren’t one-size-fits-all, as different lenders look for different aspects for loan approvals. Credila and Poonawalla Fincorp also approve abroad education loans based on different reasons. Credit score strength, co-applicant depth, country of study, and even the speed at which students need a sanction letter, all of these factors change the ‘better’ option.

This article cuts through the bias and puts both NBFCs side by side, feature by feature, fee by fee. Read on for a clear and detailed take on Credila vs Poonawalla Fincorp.

Credila Vs Poonawalla Fincorp Abroad Education Loans: Key Features

Credila and Poonawalla Fincorp are among the top NBFCs in India offering abroad education loans to students. Taking a loan from the right financial institution plays a key role in a student’s journey, so loan applicants need to understand what they have to offer.

Let’s compare the features of their overseas education loans.

Now that we understand the features of NBFC education loans without collateral and with collateral offered by both the lenders, let’s see the difference between the fees students must pay when applying for an overseas education loan from these institutions.

Credila Vs Poonawalla Fincorp Abroad Education Loan: Prepayment, Processing & Late Fees

Knowing the key features is an important part of understanding the loan offered, but there is a flip side as well. Loan seekers also need to know the fees they need to pay during the process or the penalties they may have to face if they delay or pre-empt their repayment. Let’s see the charges for these levied by both NBFCs:

The next step in understanding and comparing loans from both these NBFCs is to see what applicants and co-applicants need to meet the education loan eligibility.

Credila Vs Poonawalla Fincorp Abroad Education Loan: Applicant & Co-Applicant Requirements

One of the most important aspects for loan approval is that the applicant and co-applicant meeting the requirements. But is there a difference based on the lender. Let’s find out by looking at the criteria for Credila vs Poonawalla Fincorp:

Applicant Requirements

Co-Applicant Requirements

With this, we have understood the features of the loan, requirements and fees associated with it. But one key factor that students should know is how the credit scores impacts loan approval

Credila Vs Poonawalla Fincorp Abroad Education Loan: Credit Score Impact on Approval

Credit score is a quantifiable measure of creditworthiness for international students. The score matters to financial institutions as it measures the applicant's and co-applicant’s ability to repay the loan. Let’s see how it impacts the abroad education loan approval for Credila and Poonawalla Fincorp.

Credit Score Impact on Credila Abroad Education Loan Approval

• Primary Approval Factor: The student and the co-applicant need to pass Credila’s specific credit and underwriting rules for loan sanction.
• Risk-Based Interest Pricing: Credit score determines the interest spread by assessing the risk profile, which includes the credit history of the student and co-applicant.
• Co-Applicant Credit History: Having a positive credit history of the co-applicant is important for loan approval
• Impact of Low Scores: While a low score usually leads to rejection, Credila may consider the application if supported by strong collateral or an additional co-borrower.
• Processing Speed: A clean credit record and high CIBIL score build trust that can speed up the internal loan verification and approval process.
• Collateral Flexibility: Loan applicants with a high credit score and strong academic profile are likely to qualify for unsecured loans.

Credit Score Impact on Poonawalla Fincorp Abroad Education Loan Approval

• Ideal Score Range: A CIBIL score of 750 or above is considered ideal for a smooth approval process and better borrowing capacity by Poonawalla Fincorp.
• Approval Determinant: The credit score is a major factor for the final approval on the loan amount and overall eligibility of the borrower.
• Co-Applicant Significance: Poonawalla Fincorp looks for the applicant's and the co-applicant’s CIBIL scores. Co-borrowers with a strong score are essential if the student has no credit history.
• Interest Rate Impact: The score directly influences interest rates. A better score has lower interest rates.
• Processing Speed: Applicants with a high credit score are trusted more, so the application process is faster, resulting in quicker loan sanctioning and disbursal.
• Collateral Requirements: Even though Poonawalla Fincorp offers collateral-free loans up to INR 1Cr, having a poor credit score can lead to applicants facing stricter terms or requirements for additional security.

With this, we end our comparisons, but a key question remains. How can students choose the right option for their studies? Let’s answer as we move to the next section.

Credila Vs Poonawalla Fincorp Abroad Education Loan: How to Choose the Right One?

While we have done a thorough comparison of overseas education loans offered by Credila vs Poonawalla Fincorp, it is important to make the right choice by considering some specific factors.

• Interest Rate Structure
  Credila offers a lower starting interest rate beginning from 10% for students with exceptional GRE scores or admission to top-tier universities. This is slightly higher than Poonawalla Fincorp in comparison with a risk-based pricing model that is consistent across a wide range of vocational and professional courses.
• Unsecured Loan Limits
  Both lenders are aggressive in the collateral-free space. Each one offers INR 1Cr without security for high pedigree universities. This is important for students without assets to leverage. Credila’s limit for non-US countries might be more conservative compared to Poonawalla’s instant sanction list for global universities.
• Moratorium Period
  Credila offers a generous moratorium period of 12 months, giving students time to find employment like Poonawalla Fincorp.
• Processing Speed & Digitization
  Poonawalla Fincorp has a 100% digital, paperless application, often providing instant sanctions for students heading to recognized Global Universities. Credila, while having a good online portal, has a traditional underwriting process that can take 7-10 days, but also has a loan first, admission later, sanction letter advantage.
• Co-Applicant Flexibility
  Credila is known for accepting a wide range of co-applicants, including extended family members like cousins or uncles, if they meet the income criteria. Poonawalla also has a good list but emphasizes more on a financial co-applicant’s CIBIL score to decide the final interest rate and eligibility.

Study abroad aspirants who want more information on abroad education loans offered by either of these NBFCs or other financial institutions can reach out to Élan Loans. Our abroad education loan experts offer personalized guidance and help in choosing the right loan and lender for studies abroad. Our experts also analyse academic and financial profiles of the applicants from the bank’s perspective to assist them in securing a loan with the best student loan interest rates for studies abroad.

Credila Vs Poonawalla Fincorp Abroad Education Loan: FAQs

• Can study abroad aspirants get the tax benefit of the interest paid for abroad education loans from both Credila & Poonawalla Fincorp?
  Yes, students can get the advantage of tax deduction on interest paid for loans from both Credila and Poonawalla Fincorp.
• Do both lenders offer Pre-Visa Disbursement if the embassies need it?
  Yes, both lenders offer Pre-Visa Disbursement if required in countries like Canada and Germany.
• Is loan insurance compulsory for loan approval from Credila & Poonawalla Fincorp?
  No, while both financial institutions prefer students to have loan insurance, it is optional. Poonawalla Fincorp offers an optional bundled cover, while Credila offers an option to take the insurance for secured loans. For unsecured loans, Credila makes the insurance compulsory.
• Can the co-applicant be based in a different city from the primary applicant?
  Yes, both lenders allow students to have co-applicants based in a different city from them, as Credila has a network of physical branches across India, while Poonawalla Fincorp offers a digital process.
• Is it possible to get a top-up for students during their course from both lenders?
  While Credila offers a top-up facility for existing students to cover additional costs, Poonawalla Fincorp requires students to get a fresh assessment or opt for an ‘instant loan’.
• What happens if students have already paid their tuition deposit from personal savings?
  Both lenders offer reimbursement, where students can claim back the funds for what they have already paid by giving the financial institution the original receipts from the university in a specific timeframe.