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

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.

• For InCred and Avanse, the interest rate is almost the same. It varies between 12% - 14%, depending on your country of study abroad (interest rate as of July 2023).

• 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. 

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 maximum amounts range for InCred and Avanse education loans varies from INR 20 - 80 Lakhs and is decided based on your application’s strength 

• 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. 

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

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

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

InCred education loans are available for 25+ countries, including popular destinations such as the US, Canada, Australia, Germany, Ireland, New Zealand, etc. The list of eligible countries is updated annually based on lending conditions and policies. 

Avanse education loans are available for higher studies in 50+ countries including the US, the UK, Canada, Germany, Australia, Singapore, etc. 

Compared to banks, NBFCs take less time to process the loan application. Avanse and InCred take around 5 - 7 days to process the education loan application. If the application is eligible, the loan will be disbursed within the period convenient to the student. 

InCred and Avanse are safe options for education loans to study abroad.