InCred vs. Avanse: Which is Better for Abroad Education Loans?

When searching for education loans to study abroad, InCred and Avanse are two prominent Non-Banking Financial Companies (NBFCs) that catch your eye without extensive scrolling. These reputable lenders offer financial assistance for both STEM and non-STEM courses in sought-after destinations like the US, Canada, the UK, Germany, Ireland, Australia, and more.

Selecting the ideal option between InCred and Avanse requires thoughtful consideration of various factors and personal preferences. To assist you in making a well-informed decision tailored to your special needs, we present a comprehensive comparison of their loan products.

Comparative Overview of InCred vs Avanse Education Loan

Your selection of an education loan must be based on the loan features that they must align with your needs. Carefully go through the table below to make a better selection between InCred and Avanse. 

*Interest rate as of July 2023

The table gives you a general picture of InCred and Avanse education loans. As you see, since InCred and Avanse are NBFCs, they share many common features. However, one needs to see the terms and conditions of both the lenders to see which is more suitable for you. 

Features of InCred Education Loans

InCred is a fast-growing NBFC that, since its establishment in 2017, has sanctioned 500 million USD worth of education loans. InCred education loans cover 25+ countries and 600+ courses. Generally, InCred loans are better suited for students with work experience in their field of study. 

Given below are the features of education loans by InCred for some popular countries and courses: 

For the UK and Ireland, InCred offers education loans up to INR 25 Lakhs to only select universities based on the student’s work experience, GRE scores, and co-applicant income.

For the PG Diploma in Canada, InCred offers up to INR 20 Lakhs at a Partial Simple Interest rate.

InCred education loans for Australia and New Zealand are typically up to INR 15 Lakhs and are provided on an immediate EMI basis. 

If InCred finds the financial co-applicant profile weak, then the student needs to pay the initial PSI of the course duration + grace period before the first disbursement. The insurance amount you must pay is typically 1% of the loan amount. 

However, remember that InCred is very flexible with loan terms and conditions for students with a good profile, and there can be alterations in your case. 

Features of Avanse Education Loans

If you are worried about low chances of an education loan, Avanse can be your closest option. Avanse is an NBFC known for its higher acceptance rate of education loan applications than any other lenders. Avanse was established in 2013 and gives education loans to study at 3,000+ institutions in more than 50 countries.

Here are the features of Avanse education loans for some popular countries and courses: 

Unlike InCred and many other lenders, Avanse offers education loans for UG Diploma courses. These are offered on an immediate EMI basis.

For the UK, unsecured loans of up to INR 30 Lakhs are available if the university has been ranked under the top 100.

For PG Diploma courses in Canada, Avanse gives loans up to INR 30 Lakhs if the co-applicant has a minimum monthly income of INR 30,000. Partial Simple Interest is charged for these loans.

Mandatory Loan Cover Insurance (MRTA) is applicable for Avanse education loans, meaning that you must pay for the insurance premium under the MRTA. The maximum amount for your insurance is INR 2 Lakhs.

InCred vs Avanse: Eligibility Criteria 

NBFC has specific their own set of eligibility criteria, unlike banks. This stems from the way they function and the requirements to make the loans possible. Students who are eligible for an education loan should pay close attention to this as they could lose out. Regarding eligibility requirements, Avanse and InCred are equivalent.

InCred or Avanse: Interest Rates

One of the key factors in choosing an education loan is its interest rates. You must calculate the interest rate before confirming your choice, as a slight variation in the interest rate can save you lakhs in repayment. Use this education loan EMI calculator to assess your repayment at the current interest rates of InCred and Avanse.

Interest rates are subject to fluctuations according to the changes in the financial market 

Generally, InCred has a more stable interest rate than Avanse, owing to less changes in the internal components that determine the interest rate charged for education loans

The interest rate for your case can be influenced by variable factors such as your academic scores, GRE scores, admitted university, co-applicant income, and future earning potential. Assess your profile against these factors and see which lender offers you the best interest rate. 

InCred and Avanse Offer: Loan Amount

Depending on the type of your education loan, the maximum loan amount can vary. Generally, InCred and Avanse offer high loan amounts for unsecured options compared to many public and private sector banks. 

The co-applicants income, country of study, and academic merits influence the maximum loan amount by InCred and Avanse

Since there is no margin money, you will get 100% funding for your expenses

A general statement on who offers the maximum loan amount is problematic as it is not the same for all students. Consider how good your profile is for the conditions specified by InCred and Avanse before choosing your lender from the two.

InCred vs Avanse: Processing Fee

There are multiple steps involved in completing your education loan application, from approval to disbursement. To speed up this procedure and ensure that they receive their loan as soon as possible, applicants must pay a processing fee. A portion of the loan amount is typically used to cover processing fees.

InCred or Avanse Which is Better Deal For You? 

There is no simple answer to which is better between InCred or Avanse. It depends on various factors, including the applicant’s academic merits, the co-applicants income, the chosen course and the country of study abroad. 

Here are some generic conclusions to help you make a better choice: 

In general, InCred offers a slightly lesser interest rate for education loans and has fewer fluctuations in the interest rates. However, the interest rate for education loans is highly case-specific for NBFCs

Since Avanse is popular for a higher acceptance rate, you can prioritize Avanse if you have more backlogs but want to study abroad 

The insurance amount is generally more for Avanse education loans than education loans by InCred

InCred and Avanse do not offer education loans to students belonging to all locations, and the excluded locations are not the same for both. You can choose one easily if the other does not offer loans for your location

The universities covered by InCred and Avanse are not the same for all countries. It will be easier for you to select if you explore which universities are funded by them for the country of your choice

In terms of affordability, InCred and Avanse are better options, so it comes down to personal preferences in the end. You may prefer an option based on your profile’s merits and negotiations with the lender. 

Here is an easy method to find out which is better for your profile - get in touch with GyanDhan and know the best education loan options for your profile. Use the link and check your education loan eligibility now.

Read also:

Avanse Education Loan

InCred Education Loan

Avanse Education Loan Disbursement Process

The Disbursement Process of InCred Education Loan

Avanse vs Prodigy

Avanse vs Auxilo

 

Frequently Asked Questions

What is the minimum salary requirement of the co-applicant for an InCred education loan?

The minimum salary requirement of the co-applicant for InCred education loan depends on various factors like the course and country of study and GRE scores. The income requirement for education loans to various countries is as follows: 

STEM Master’s in the US - INR 20,000

Non-STEM Master’s in the US - INR 35,000

STEM Master’s in Canada - INR 30,000

Non-STEM Master’s in Canada - INR 40,000

STEM Master’s in other countries - INR 35,000

Non-STEM Master’s in other countries - INR 40,000

What is the minimum salary requirement of teh co-applicant for an Avanse education loan?

For Avanse education loans, the minimum co-applicant salary varies according to the country of study abroad as shown here:

STEM Master’s in the US - INR 20,000

Non-STEM Master’s in the US - INR 35,000

STEM Master’s in Canada - INR 30,000

Non-STEM Master’s in Canada - INR 40,000

STEM Master’s in other countries - INR 35,000

Non-STEM Master’s in other countries - INR 50,000