Education Loan

Avanse vs. Auxilo: Comparing Abroad Education Loan Options

Avanse vs. Auxilo: Comparing Abroad Education Loan Options

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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.

GyanDhan
Ananya Ghai
Updated on:  23 Oct 2023  | Reviewed By: 
Aman 
| 1.82K | 9  min read
Avanse vs Auxilo

 

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.

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Comparative overview of Auxilo vs. Avanse education loan

Feature Avanse Auxilo

Loan amount

Up to INR 75 Lakh

Up to INR 65 Lakh

Rate of interest

12.5 - 13.5%

11.25 - 14%

Processing fees

0.5 - 1%

0.5 - 2%

Margin money

nil

nil

Repayment tenure

10-12 years

10-12 years

Repayment during course

Partial/simple interest/EMI

Partial/simple interest/EMI

Moratorium period

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.

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Maximum loan amounts offered by Avanse and Auxilo

For both Avanse and Auxilo, the loan amount offered depends on course, country, and GRE score. 

  • list items Avanse offers financing of up to INR 75 Lakh, with the possibility of increasing the amount for students with a strong profile. 
  • list items In comparison, Auxilo offers financing of up to INR 65 Lakh for overseas education.


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

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Rate of interest of Avanse and Auxilo

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.

  • list items The interest rate at Avanse ranges from 12.5 - 13.5%. 
  • list items Interest rates at Auxilo range from 11.25 - 14%.

 

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%

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Processing fees of Avanse and Auxilo

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%

Canada 

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.

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Insurance coverage by Avanse and Auxilo

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.

  • list items Avanse offers a lower competitive rate for good profile cases, such as high GRE with high co-applicant income. So if you have a good academic profile and your co-applicant’s monthly income is between INR 35 - 60K, then Auxilo is the right choice for you.
  • list items Avanse can help students with low CIBIL and GRE scores and considers students with more than 10 backlogs whereas Auxilo does not include students with weak academic scores and low CIBIL scores. The acceptance rate is higher for Avanse than any other lender of education loans
  • list items If your profile is not fit for any particular product by any lender then Avanse can provide you education loan given the co-applicant's income is sufficient to pay the EMI from the very next month after the loan is disbursed.

 

Get Guaranteed Best Loan with GyanDhan
Find a Better Loan Offer Elsewhere & We Will Cover the Difference in Interest

 

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.

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Frequently asked questions

How do Avanse and Auxilo differ from tr aditional banks?

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.

What are the eligibility criteria for Avanse and Auxilo education loans?

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.

Do Avanse and Auxilo require collateral for their education loans?

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.

Are Avanse and Auxilo education loans eligible for tax benefits?

Avanse and Auxilo education loans are not eligible for tax benefits under Section 80E of the Income Tax Act. 

What is the interest rate of an abroad education loan from Avanse?

The current rate of interest on abroad education loan from Avanse range from 12.5 - 13.5%.

What is the interest rate on an abroad education loan from Auxilo?

The current rate of interest on abroad education loan from Auxilo range from 11.25 - 14%.

Check Your Education Loan Eligibility


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