- Avanse offers financing of up to INR 75 Lakh, with the possibility of increasing the amount for students with a strong profile.
- In comparison, Auxilo offers financing of up to INR 65 Lakh for overseas education.
- The interest rate at Avanse ranges from 12.5 - 13.5%.
- Interest rates at Auxilo range from 11.25 - 14%.
- 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.
- 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
- 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.
Updated on: 23 Oct 2023
9 min read
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.
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.
Table of Content 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. For both Avanse and Auxilo, the loan amount offered depends on course, country, and GRE score. 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% 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%.
Comparative overview of Auxilo vs. Avanse education loan
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Maximum loan amounts offered by Avanse and Auxilo
Refer to the below table for the loan amount offered for each country.
Rate of interest of Avanse and Auxilo
Processing fees of Avanse and Auxilo
Insurance coverage by Avanse and Auxilo
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Frequently asked questions
How do Avanse and Auxilo differ from tr aditional banks?
What are the eligibility criteria for Avanse and Auxilo education loans?
Do Avanse and Auxilo require collateral for their education loans?
Are Avanse and Auxilo education loans eligible for tax benefits?
What is the interest rate of an abroad education loan from Avanse?
What is the interest rate on an abroad education loan from Auxilo?
Written by
Ananya Ghai
A post-graduate with over three years of expertise in the education abroad industry, Ananya has a knack for writing blogs. Previously, she has worked as an IELTS trainer and SOP writer. A passionate writer and a literature geek, describe her perfectly.
Reviewed by
Aman Jain
Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh students in his 8-year-long journey.
Specializes in:
Education loan ,
Study Abroad Admissions
GyanDhan is India's first education financing marketplace.
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