Avanse vs. Auxilo: Comparing Abroad Education 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.

Overview Of Auxilo vs. Avanse Education Loan

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.
 

Loan Application Process: Maximum Loan Amounts Offered by Avanse and Auxilo

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

• 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.

Refer to the below table for the loan amount offered for each country.

Maximum loan amount for MS in US

Maximum loan amount for MS/PG Diploma in other countries

Loan Application Process: 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.

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

Read more about: How to Check Avanse Education Loan Status

Loan Application Process: 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.

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.

Watch and compare Avanse Education Loans and Auxilo Education Loans to find the best lender of yout choice

Loan Application Process: 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.

Auxilo Vs Avanse Repayment Tenure

Wherein, the tenure of repayment for Auxilo and Avanse is the same, as they all stand at 15 years, whereas terms would affect the exact tenure of repayment agreed upon while negotiating factors like loan amount, the study country, course, and GRE score.

Which Is Better: Auxilo Or Avanse? 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.

• 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.

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 Education Loan
• Auxilo Education Loan
• Avanse Education Loan Disbursement Process
• Auxilo Education Loan Disbursement Process
• HDFC credila vs avanse
• Avanse vs Prodigy
• HDFC credila vs auxilo

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