Are you considering an education loan to make your dream of studying abroad a reality? With so many lending partners in the market, choosing the right one can be challenging. Avanse and Auxilo, two prominent education loan providers, offer unique benefits that can help you finance your education journey, whether you need a loan with collateral or one without.
In this guide, we’ll break down the essential differences between Avanse and Auxilo, helping you navigate loan eligibility, repayment terms, and specific options for abroad education loans. You’ll discover what sets each provider apart, making it easier to find the right loan for your needs.
So, whether you’re comparing terms across lenders like SBI, HDFC Credila, and Axis, or exploring collateral-free options from providers like Auxilo and Avanse, let’s dive into everything you need to know to make an informed decision and achieve your educational aspirations.
Overview of Avanse vs Auxilo
When it comes to financing your education, choosing the right loan provider is essential. Avanse and Auxilo are two specialized players in the education loan space, each with unique offerings to meet the diverse needs of students. But how do they differ, and which one is the best fit for your goals? Let’s break down the essentials so you can make an informed choice.
Comparison of Avanse and Auxilo Education Loan Offerings
| Feature | Avanse | Auxilo |
|---|---|---|
| Loan Amount | Up to INR 75 Lakh | Up to INR 65 Lakh |
| Interest Rate | 12.5% – 13.5% | 11.25% – 14% |
| Processing Fees | 0.5% – 1% | 0.5% – 2% |
| Margin Money | None | None |
| Repayment Tenure | 10-12 years | 10-12 years |
| Repayment Mode During Course | Partial/simple interest/EMI | Partial/simple interest/EMI |
| Moratorium Period | Course duration + 1 year | Course duration + 1 year |
| Income Tax Benefit (Section 80E) | No | No |
| Loan Approval Based on GRE/GMAT | Yes | Yes |
Both Avanse and Auxilo provide education loans specifically designed for students studying abroad, though there are some differences in the maximum loan amount, interest rates, and processing fees. Here’s a breakdown of each lender’s offerings to help you make an informed choice.
Maximum Loan Amounts for Avanse and Auxilo
The loan amount offered by Avanse and Auxilo varies based on factors such as course type, study destination, and GRE scores.
- Avanse: Offers loans up to INR 75 Lakh, with possible increases for students with strong academic profiles.
- Auxilo: Offers loans up to INR 65 Lakh for overseas education.
Below are tables detailing the maximum loan amounts offered for specific countries and GRE score brackets.
Maximum Loan Amount for MS in the U.S.
| GRE Score Range | 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 Diplomas 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 |
| Other countries | Up to INR 20 Lakh | Up to INR 20 Lakh |
Interest Rates for Avanse and Auxilo
Interest rates significantly affect the total repayment amount. Avanse and Auxilo both provide competitive interest rates that are determined based on factors like the study program, country of education, GRE scores, and the applicant’s academic profile.
- Avanse: Interest rates range from 12.5% to 13.5%.
- Auxilo: Interest rates vary from 11.25% to 14%.
Interest Rates by Country
| Country | Rate of Interest (Auxilo) | Rate of Interest (Avanse) |
|---|---|---|
| U.S. (GRE 300 – 310) | 11.25% – 12.5% | 12.25% – 12.75% |
| U.S. (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% |
| Other countries | 12.5% – 13.5% | 12.5% – 13.5% |
Processing Fees for Avanse and Auxilo
Processing fees are charged by both lenders as a percentage of the loan amount. The amount varies based on the chosen destination, and for the U.S., it may also be influenced by the applicant’s GRE score.
Processing Fees by Country
| Country | Processing Fees (Auxilo) | Processing Fees (Avanse) |
|---|---|---|
| U.S. (GRE 300 – 310) | 0.5% – 1% | 1% |
| U.S. (GRE 285 – 299) | 1% | 1% |
| Canada | 1% – 2% | 1% – 1.5% |
| Australia / New Zealand | 1% – 1.5% | 1% – 1.5% |
| Other countries | 1% – 2% | 1% – 2% |
Auxilo’s processing fees tend to be on the higher side, though students with strong profiles may be eligible for fee negotiation. Avanse’s fees, however, are fixed and non-negotiable.
Auxilo vs Avanse: Loan Offerings and Terms
Understanding the loan offerings from Avanse and Auxilo can help you pinpoint which provider best meets your educational needs. Both lenders aim to offer flexible financing options, but their loan structures, amounts, and terms vary. Let’s dive into the key loan features you should consider.
Types of Loans Available
Whether you’re looking to study within India or internationally, Avanse and Auxilo both provide a variety of education loans designed to support different study levels and financial situations.
- Avanse:
- Study Loans: Ideal for undergraduate, graduate, or professional courses, Avanse’s study loans cover tuition and other essential costs, such as living expenses.
- Pre-Admission and Exam Loans: For students who need funds for entrance exams or pre-admission fees, Avanse offers these unique loan options.
- Auxilo:
- Domestic and Abroad Education Loans: Auxilo provides loans tailored for students studying either in India or abroad, with flexible repayment options to match course durations and requirements.
- Collateral-Free Loans: Eligible students can access loans without collateral, a popular choice among those studying abroad who may not have assets to pledge.
Loan Amount and Coverage
The loan amounts offered by Avanse and Auxilo can vary based on factors like your study destination, program type, and repayment capacity. Here’s a breakdown of what you might expect:
- Loan Limits:
- Avanse: Covers a range of loan amounts, offering up to the full cost of education, depending on eligibility. This can include tuition, travel, and accommodation expenses, making it an all-inclusive solution.
- Auxilo: Also provides substantial loan amounts, particularly for abroad education loans, to support tuition fees and other living costs. Their loan coverage may be slightly more flexible for students pursuing higher education within India.
- Expense Coverage:
- Avanse tends to cover additional costs like travel, insurance, and even some personal expenses, making it comprehensive for students needing all-around support.
- Auxilo typically covers core expenses but may vary in extending coverage for extras like travel and insurance. This can depend on factors like the type of loan and applicant profile.
Repayment Tenures
Another key consideration is the repayment flexibility each lender offers. Avanse and Auxilo both aim to make repayment manageable, but they each have their own terms.
- Avanse: Offers repayment terms that generally span from 5 to 10 years, depending on the loan type. Avanse also allows for a grace period, giving students time to settle financially before repayments start.
- Auxilo: Provides similar repayment options but often with more emphasis on flexible EMI plans for students who may start with lower repayment capacities. They may also have flexible deferment options for students who need additional time to establish their income.
Auxilo Interest Rates and Fees
Interest rates and fees are among the most critical factors to weigh when choosing an education loan provider. Understanding how Avanse and Auxilo differ in their pricing can help you make a choice that suits both your budget and financial goals. Let’s look at the details, so you can get a clear picture of what to expect from each.
Interest Rate Comparison
One of the first things you’ll notice when comparing Avanse and Auxilo is the variety of interest rates offered. Both lenders offer competitive rates, but each has unique options to consider.
- Avanse:
- Avanse provides both fixed and variable interest rates, allowing you to choose based on your comfort with financial flexibility. Fixed rates give you predictability, while variable rates might allow for lower initial payments but could change over time.
- Their rates are typically in line with other prominent providers like SBI and HDFC Credila, but they often offer tailored rates for students heading to specific institutions or pursuing high-demand fields of study.
- Auxilo:
- Auxilo also offers a range of competitive rates, generally similar to other education-focused lenders such as Axis and ICICI. They tend to structure rates based on the loan amount, repayment tenure, and the applicant’s profile, giving you a more customized approach.
- For those seeking an abroad education loan, Auxilo provides flexible rate options that may be slightly lower for specific international programs, making it attractive if you’re looking for overseas study.
Processing Fees
When it comes to fees, both Avanse and Auxilo aim to keep things straightforward, but it’s essential to know what each provider charges so you can plan accordingly.
- Avanse:
- Processing fees are generally between 1-2% of the loan amount. Avanse may also offer discounts on processing fees for select applicants or certain courses, so it’s worth checking for any promotions if cost savings are a priority.
- Auxilo:
- Auxilo’s processing fees tend to be similar, usually around 1-2% of the total loan. However, they sometimes offer fee reductions or waivers for high-performing students or applicants with a strong financial background, particularly for loans without collateral.
Other Hidden Charges
Beyond interest rates and processing fees, be aware of other charges that may apply to your loan. Each lender has specific policies around these fees, so understanding them up front can help you avoid surprises.
- Prepayment and Foreclosure Fees:
- Avanse: Offers flexible prepayment options, and if you choose to repay early, they may waive prepayment fees after a set period.
- Auxilo: Also allows early repayment with minimal or no fees, depending on your loan terms. They tend to be accommodating for students who secure employment shortly after graduation and want to pay off their loan sooner.
- Late Payment Charges:
- Both lenders charge a penalty for late payments, though the rates are generally reasonable. Avanse might be slightly stricter, while Auxilo often allows a grace period or waivers on a case-by-case basis.
FAQs: Avanse vs. Auxilo Education Loans
What is the maximum loan amount I can get from Avanse and Auxilo?
Avanse offers a loan amount of up to INR 75 Lakh, with potential for higher amounts for applicants with strong academic profiles.
Auxilo provides loan amounts up to INR 65 Lakh, depending on factors like course and country.How do the interest rates compare between Avanse and Auxilo?
Avanse offers interest rates ranging from 12.5% to 13.5%.
Auxilo has a broader range, with interest rates between 11.25% and 14%, determined by the course, study destination, and student profile.3. Are there any processing fees for loans from Avanse and Auxilo?
Yes, both lenders charge processing fees. Avanse: 0.5% – 1% of the loan amount, non-negotiable. Auxilo: 0.5% – 2% of the loan amount, with some scope for negotiation for students with strong profiles.
Is there a moratorium period offered by Avanse and Auxilo?
Both lenders offer a moratorium period of the course duration plus an additional year before repayment starts.
Do I need to pay any amount during my study period?
Both Avanse and Auxilo provide flexible repayment options during the study period, including partial interest, simple interest, and EMI-based payments.
Do Avanse or Auxilo provide tax benefits on education loans?
Neither Avanse nor Auxilo loans are eligible for income tax benefits under Section 80E of the Income Tax Act.
Do Avanse and Auxilo consider GRE/GMAT scores for loan approval?
Yes, both lenders consider GRE and GMAT scores, especially for loans for studying in the U.S. Higher scores can positively influence the loan approval process and potentially reduce interest rates.
What factors affect the loan amount eligibility with Avanse and Auxilo?
Factors such as the type of course, the country of study, the student’s academic background, and GRE/GMAT scores (for the U.S.) influence the loan amount eligibility with both lenders.
What is the typical loan tenure with Avanse and Auxilo?
Both lenders offer repayment tenures between 10 to 12 years, allowing flexibility in repayment.
Can I use the loan to cover all expenses for my education abroad?
Both Avanse and Auxilo loans generally cover tuition fees, living expenses, travel costs, and other study-related costs. However, it’s advisable to check specific coverage terms with each lender.
