Education Loan

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

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

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Read GyanDhan’s comparative guide on InCred vs Avanse abroad education loan to choose the right option for you. Compare the interest rates, loan amount, repayment terms & more.

GyanDhan
Anam Shams
Updated on:  23 Oct 2023  | Reviewed By: 
Aman 
| 3.01K | 9  min read

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.

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Comparative overview of InCred vs. Avanse abroad 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. 

Features  InCred Avanse

Maximum loan amount

INR 20 - 80 Lakhs

INR 20 - 75 Lakhs

Interest rates*

11.65% - 13.5%

12% - 13.25%

Moratorium period 

Course duration + 1 year

Course duration + 1 year

Repayment during the moratorium period

Simple Interest/ Partial Simple Interest

Simple Interest/ Partial Simple Interest

Processing fee

0.5% - 1% of the loan amount + GST

1% - 1.5% of the loan amount + GST

Loan tenure

12 - 15 years

12 - 15 years

Margin money

Nil 

Nil

Minimum co-applicant income (negotiable for secured education loans)

INR 20,000 - 40,000

INR 20,000 - 50,000

Credit life insurance premium

1.25% - 1.5% of the loan amount

1.25% - 1.5% of the loan amount

Loan Approval Based on GRE / GMAT? 

Yes

Yes

Give Pre Admission Loans 

Yes

Yes

 

*Interest rate as of July 2023

Check Your Education Loan Eligibility

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. 

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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: 

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

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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: 

  • list items Unlike InCred and many other lenders, Avanse offers education loans for UG Diploma courses. These are offered on an immediate EMI basis. 
  • list items For the UK, unsecured loans of up to INR 30 Lakhs are available if the university has been ranked under the top 100. 
  • list items 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. 
  • list items 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. 
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Who offers better Interest rates: InCred or Avanse? 

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.

  • list items 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).
  • list items Interest rates are subject to fluctuations according to the changes in the financial market 
  • list items 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. 

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How much loan amount InCred and Avanse offer?

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. 

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

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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: 

  • list items 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
  • list items Since Avanse is popular for a higher acceptance rate, you can prioritize Avanse if you have more backlogs but want to study abroad 
  • list items The insurance amount is generally more for Avanse education loans than education loans by InCred
  • list items 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
  • list items 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:

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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: 

  • list items STEM Master’s in the US - INR 20,000
  • list items Non-STEM Master’s in the US - INR 35,000
  • list items STEM Master’s in Canada - INR 30,000
  • list items Non-STEM Master’s in Canada - INR 40,000
  • list items STEM Master’s in other countries - INR 35,000
  • list items 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:

  • list items STEM Master’s in the US - INR 20,000
  • list items Non-STEM Master’s in the US - INR 35,000
  • list items STEM Master’s in Canada - INR 30,000
  • list items Non-STEM Master’s in Canada - INR 40,000
  • list items STEM Master’s in other countries - INR 35,000
  • list items Non-STEM Master’s in other countries - INR 50,000

Which countries are eligible for InCred education loans?

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. 

Which countries are eligible for Avanse education loans?

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

How many days does it take to get an education loan from InCred or Avanse?

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. 

Which is safe for education loans, InCred or Avanse?

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

Check Your Education Loan Eligibility


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