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Read GyanDhan’s comparative guide on Avanse vs. Auxilo abroad education loans to choose the right option for you. Compare the interest rates, loan amount, repayment terms & more.
NBFCs are becoming the preferred options for abroad education loans by many students. According to CRISIL ratings (Credit Rating Information Services of India Limited), education loans by NBFCs have an expected growth of 35% - 40% to around INR 35,000 Cr in the financial year 2023-24.
Both Avanse and Auxilo are NBFCs based in India that offer education loans for studying abroad with competitive interest rates, flexible repayment options, and dedicated customer support. Avanse and Auxilo are prominent non-banking financial companies (NBFCs) in India that provide loans for education abroad. They offer both secured and unsecured loan options.
Feature | Avanse | Auxilo |
---|---|---|
Loan amount |
Up to INR 75 Lakh |
Up to INR 65 Lakh |
12.5 - 13.5% |
11.25 - 14% |
|
Processing fees |
0.5 - 1% |
0.5 - 2% |
nil |
nil |
|
Repayment tenure |
10-12 years |
10-12 years |
Repayment during course |
Partial/simple interest/EMI |
Partial/simple interest/EMI |
Course duration + 1 year |
Course duration + 1 year |
|
Income tax benefit under section 80E |
No |
No |
Loan approval basis GRE / GMAT |
Yes |
Yes |
Both Avanse and Auxilo offer similar loan products for abroad education. However, they differ in some aspects. Let’s dissect each aspect of Avanse and Auxilo as education loan providers to gain a more comprehensive understanding and make a well-informed decision.
Check Your Education Loan Eligibility
For both Avanse and Auxilo, the loan amount offered depends on course, country, and GRE score.
Refer to the below table for the loan amount offered for each country.
Maximum loan amount for MS in US
GRE | Loan amount (Auxilo ) | Loan amount (Avanse) |
---|---|---|
>310 |
Up to INR 65 Lakh |
Up to INR 50 Lakh |
300 - 310 |
Up to INR 50 Lakh |
Up to INR 40 Lakh |
285 - 299 |
Up to INR 40 Lakh |
Up to INR 35 Lakh |
Maximum loan amount for MS/PG Diploma in other countries
Country | Loan amount (Auxilo) | Loan amount (Avanse) |
---|---|---|
MS in Canada |
Up to INR 30 Lakh |
Up to INR 40 Lakh |
PG Diploma in Canada |
Up to INR 25 Lakh |
Up to INR 25 Lakh |
Australia / New Zealand |
Up to INR 20 Lakh |
Up to INR 20 Lakh |
UK |
Up to INR 40 Lakh |
Up to INR 40 Lakh |
Others |
Up to INR 20 Lakh |
Up to INR 20 Lakh |
Interest rates play a very crucial role in determining the total cost of education, Both Avanse and Auxilo offer competitive rates of interest. The final interest rate is determined by taking into account various factors, including the desired course and country of study, GRE scores, and the student's academic profile.
Country | Rate of interest ( Auxilo) | Rate of interest (Avanse) |
---|---|---|
US (GRE 300 - 310) |
11.25 - 12.5% |
12.25 - 12.75% |
US (GRE 285 - 299) |
12.5 - 13% |
13 - 14% |
Canada |
12.5 - 12.75% |
12 - 13% |
Australia / New-Zealand |
12.5 - 14% |
12.5 - 13.5% |
Others |
12.5 - 13.5% |
12.5 - 13.5% |
Read more about: How to Check Avanse Education Loan Status
Processing fees are charges levied by lenders during the processing of an education loan application. The amount of processing fees is typically calculated as a percentage of the loan amount. The processing fee for both Auxilo and Avanse depends on the chosen country. For Us, the processing fees also depend on the GRE score.
Country | Processing fees ( Auxilo) | Processing fees (Avanse) |
---|---|---|
US (GRE 300 - 310) |
0.5 - 1% |
1% |
US (GRE 285 - 299) |
1% |
1% |
1 - 2% |
1 - 1.5% |
|
Australia / New Zealand |
1 - 1.5% |
1 - 1.5% |
Others |
1 - 2% |
1 - 2% |
As the table depicts, the average processing fees at Auxilo is comparatively high but if the student holds a good academic profile then Auxilo can negotiate the processing fees. However, for Avanse the processing fee is non-negotiable.
Insurance coverage for education loans is a form of financial protection provided to borrowers and their families in the event of unforeseen circumstances. It acts as a safeguard to ensure that the loan repayment is not burdened by unexpected events such as the borrower's disability, critical illness, or death.
Avanse and Auxilo offer loan insurance coverage under their education schemes. These schemes are crucial for the borrower to opt for. Avanse offers insurance cover for both applicant and co-applicant. The applicant has to pay approximately 1.25 - 1.5% as a premium against this policy. It is a mandatory insurance policy by Avanse. However, the premium percentage is negotiable if the student has a strong academic background. For Auxilo the insurance premium is approximately 3 - 4% and is non-negotiable.
Avanse vs. Auxilo: The right choice
Both Avanse and Auxilo offer competitive abroad education loan options with various features and benefits. The choice between the two depends on individual requirements and preferences. Below are listed some common scenarios and the favorable lender.
Well, if you have a strong academic profile, a 310 + GRE score, and a stable co-applicant income then HDFC Credila is one of the most preferred NBFCs for education loans. However, if you have low CIBIL scores and poor academic records then Avanse and Auxilo can help you with an education loan.
Now that you are familiar with the various differences between Avanse and Auxilo, you can make an informed decision. This comparison will enable you to select the most suitable option that aligns with your needs and facilitates a successful experience studying overseas. Additionally, GyanDhan's team of experts provides personalized guidance and support throughout the loan application process, helping students navigate complex procedures and optimize their chances of loan approval. Once you check your education loan eligibility, a dedicated education loan counselor will be assigned to you who will carefully evaluate your profile and select the best lender for you.
Read also:
Avanse and Auxilo specialize in education loans and have tailored their offerings to meet the unique needs of students studying abroad. Traditional banks do not offer the same level of customization and flexibility that NBFCs offer.
The eligibility criteria may vary, but generally, Avanse and Auxilo require applicants to be Indian nationals with a confirmed admission offer from a recognized foreign educational institution. They also consider the academic performance, financial background, and credit history of the applicant or co-applicant.
Avanse and Auxilo may offer both secured and unsecured education loans. Collateral may be required for higher loan amounts, whereas smaller loans may not require any collateral. Generally for undergraduate courses, collateral is a must, whereas for postgraduate courses unsecured loans are available.
Avanse and Auxilo education loans are not eligible for tax benefits under Section 80E of the Income Tax Act.
The current rate of interest on abroad education loan from Avanse range from 12.5 - 13.5%.
The current rate of interest on abroad education loan from Auxilo range from 11.25 - 14%.
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