From Public Banks to NBFCs: How Nomad Credit Helps You Pick the Right Loan Partner

Choosing the right education loan partner is often the first financial step toward realizing your dream of studying abroad. Between government-backed public banks and agile NBFCs (Non-Banking Financial Companies), students today have more financing options than ever before.

However, not every lender suits every student’s needs, and that’s where Nomad Credit, your trusted study abroad consultant, makes all the difference.

Nomad Credit specializes in helping students evaluate loan options tailored to their country, course, university, and financial background, comparing interest rates, collateral requirements, and repayment terms from top institutions like SBI, Union Bank, Avanse, and Credila.

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Public Banks vs NBFCs: What’s the Difference?

It is essential to know the difference between the approach of public sector banks and NBFCs to abroad education loans before getting into the specifics of lenders.

Public Sector Banks

Public banks like the State Bank of India (SBI) and Union Bank of India offer secure, low-interest loan options, especially suitable for families that can offer collateral. However, these loans often involve lengthier processing times and more stringent eligibility conditions.

NBFCs

NBFCs such as Avanse and Credila have disrupted the traditional loan space with faster processing, lenient collateral norms, and fully customizable loan packages. They are ideal for students who need flexible funding but may come with slightly higher interest rates.

Here’s a quick side-by-side comparison:

Top Lenders and Their Offers

Finding the right lender isn’t just about education loan interest rates, it’s about choosing the loan that aligns with your academic goals, repayment comfort, and visa timelines. Below are some of the most trusted public banks and NBFCs offering competitive abroad education loans for international students.

1. SBI Abroad Education Loan

The SBI Global Ed-Vantage Scheme is tailored for overseas education, offering loan amounts up to INR 3 crore. Interest rates typically start at 9.15%, and loans require collateral for amounts over INR 7.5 lakh. A grace period includes the course duration plus six months, which gives students time to settle before starting repayment.

2. Union Bank of India for Study in Canada

Union Bank provides loans up to INR 40 lakh, collateral-free, for students attending top institutions in countries like Canada. The interest rates range from 8.25% to 11%, depending on your academic profile and the university’s ranking. It’s a competitive public option for those targeting North America.

3. Avanse Finance Education Loan

Avanse stands out with its high loan limit (up to INR 1.25 crore) and comprehensive cost coverage. Students can finance tuition, travel, accommodation, and even laptop and exam fees. Loan approvals are typically completed within 5 – 7 days, and interest rates begin at 14.55%. Many students appreciate the no-collateral flexibility.

4. Credila Education Loan Interest Rate Overview

Credila, part of HDFC Ltd., focuses solely on educational loans. Their interest rates start at around 9.95%, and they offer repayment plans based on your course, country, and earning potential. Credila also offers special benefits to students attending high-ranking global universities.

Sample Scenario: Which Lender Makes Sense?

The comparison below shows the differences between banks offering educational loans to study abroad and NBFCs in relation to their eligibility, coverage, and flexibility to Indian students wanting to study abroad.

How Nomad Credit Helps You Choose the Right Partner

Navigating these choices can be overwhelming. Nomad Credit simplifies the process through:

• Personalized Loan Matching: Based on your country, university, course, financials, and co-applicant eligibility.
• Side-by-Side Comparisons: Of interest rates, moratoriums, collateral needs, and loan coverage.
• Real-Time Lender Feedback: They help you understand fine print like forex charges, processing fees, and prepayment penalties.
• End-to-End Support: From paperwork to disbursal and even post-loan refinancing options.

With one application on Nomad Credit, students gain access to multiple lenders, banks providing educational loans for abroad as well as NBFCs, to find the most student-friendly and cost-effective deal.

Compare Top Lenders With Nomad Credit

Let Nomad Credit Do the Heavy Lifting

Nomad Credit is more than just a study abroad consultant, it’s a complete education partner. From the first query to arrival abroad, students receive end-to-end support that’s personalized, efficient, and reliable. Here’s what makes us stand out:

• Free counselling, 500+ university tie-ups, and a 90% admission success rate
• 95% visa success rate with expert documentation and mock interview support
• Education loans up to ₹1.50 Cr, with quick sanctions in just 72 hours*
• One-stop comparison of top lenders like SBI, Avanse, Credila, and more

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