Avanse vs Poonawalla Fincorp: Which is Better for Education Loans?

With NBFC's education loan Assets Under Management (AUM), the total value of loans managed to soar 48% to ₹64,000 crore in FY 2024 - 25. While projected to rise another 25% this year (BFSI Economic Times). The role of private lenders in shaping students’ overseas education journey has become more crucial than ever. Two of these, Avanse and Poonawalla Fincorp, have become serious players, with plenty of competitive features geared to the prospective international student. For anyone weighing their options, the Avanse vs Poonawalla Fincorp education loan highlights some key differences worth exploring. As more Indian students pursue higher education in foreign countries, selecting a lender can make a big difference in the loan affordability and repayment terms.

Avanse vs Poonawalla Fincorp Student Loan Overview

The Avanse student loans since their inception in 2013 have been assisting students to fund their education at over 3000 institutions in 50 countries. Each loan includes Mandatory Loan Cover Insurance (MRTA), which provides financial protection by covering the outstanding loan in case of unforeseen events, allowing students to focus on their studies without worrying about repayment. The cover is capped at INR 2 Lakhs.

Poonawalla Fincorp education loan process is entirely online and without hassles aimed to simplify the way education can be funded. The eligibility is determined not only by the co-applicant and collateral but also by the Letter of Acceptance (LOA). The course and university are taken into consideration, along with global ranking, employability, country of study, and past performances of students repaying the loans will be considered to make a loan decision.

Avanse vs Poonawalla Fincorp: Key Details

The following table presents a direct comparison of the Avanse vs Poonawalla Fincorp education loan, highlighting essential details such as loan limits, interest rates, and processing fees. By reviewing these factors together, students can easily understand the distinctions between the two lenders and evaluate Avanse or Poonawalla Fincorp which is better suited to their study abroad requirements.

STP= Straight Through Process*

Avanse vs Poonawalla Fincorp Loan Eligibility

Understanding Avanse vs Poonawalla Fincorp loan eligibility is crucial, as it sets the criteria a student must meet to qualify for an education loan. This will facilitate an easier approval journey and greater possibility of loan sanction.

Note: Eligibility conditions may vary, so always confirm details directly with the lender before applying.

Loan Eligibility Requirement for Avanse:

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  Applicant should be at least 18 years of age.
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  A CIBIL score of 700 is preferred, though genuine exceptions may be considered.
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  Co-applicant must have a minimum monthly income of ₹20,000 – ₹35,000 (without existing obligations).
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  Co-applicant can be either salaried or self-employed.
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  Final disbursal requires a confirmed admission letter.

Loan Eligibility Requirement for Poonawalla Fincorp:

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  Applicant’s age must fall between 16 - 60 years, while the co-applicant should be between 21–70 years.
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  Co-applicant may be salaried or self-employed.
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  A CIBIL score of 700 or higher is mandatory for the co-applicant.
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  Minimum co-applicant income required (without obligations): ₹25,000/month for metro cities, ₹18,000/month for Tier 1 cities, and ₹15,000/month for Tier 2 cities.

Avanse vs Poonawalla Fincorp Moratorium Period Comparison

When selecting an education loan, repayment type and moratorium periods are important. Understanding the details of an Avanse vs Poonawalla Fincorp student loan, including repayment type and moratorium options, helps students plan finances effectively and avoid surprises after disbursal. Calculate your monthly payments on an education loan using the GyanDhan's EMI calculator.

Which Bank is Best for Education Loan Avanse or Poonawalla Fincorp?

There isn’t a straightforward answer to which lender is superior, as the right choice depends on a student’s academic profile, co-applicant’s income, chosen course, along with study destination. Comparing an Avanse vs Poonawalla Fincorp education loan highlights key differences that can influence your loan experience and repayment strategy.

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  Avanse accepts applicants with academic backlogs, providing flexibility to students, while Poonawalla Fincorp generally requires a clean academic record.

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  Poonawalla Fincorp offers EMI repayment options during the moratorium period, which reduces the overall interest burden later. On the other hand, Avanse only allows SI or PSI payments during the same period.

Want to know which lender suits your profile best? Connect with GyanDhan to explore the top education loan options. Check your education loan eligibility instantly to make a well-informed decision.

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