If you were to choose a non-custom wood or faux wood blind, then you would either have to make the entire blind narrow enough to fit inside the tile wrap - or else - stop the blind on the top of the tile. If you can visualize this - you would correctly be imaging rather large - and unsightly gaps - on either the sides or bottom of your window.
However, there is an option. With custom made wood or faux wood blinds, you can have them made with a pre-positioned notch that allows the blind to operate around the obstruction while keeping a uniform and beautiful look.
We would love to help you with you wood or faux wood blind project. We have done lots of windows with tile cut-outs. Also, check out our online wood and faux wood blind cost estimator designed to help you budget for your project.