Studying abroad has become popular for many Indian students seeking global exposure and better career opportunities. The overall cost of education calls for external funding, even after students have saved some personal financing.
This is where Non-Banking Financial Companies (NBFCs) specializing in education loans come into play. They offer a viable alternative to traditional banks, providing flexible terms, competitive interest rates, and tailored solutions to meet the specific needs of students.
In this article, we will delve into the offerings of four leading NBFCs to help you make an informed decision about the best bank for your education loan:
HDFC Credila
HDFC Credila, a subsidiary of HDFC Bank, is one of the most well-known NBFCs in India. It offers education loans for various courses and study destinations.
Some of the key features of HDFC Credila’s education loans include:
- Loan Amounts: Up to INR 75 lakhs.
- Interest Rates: Competitive interest rates vary based on the loan amount and the borrower’s profile. As per the RBI’s recent data, HDFC Credila’s average interest rate for education loans stood at 11.5% in the last quarter of 2023.
- Repayment Tenure: 12 years, including the course duration.
- Moratorium Period: A moratorium period of up to 12 months and the course duration.
Avanse
Avanse is another prominent NBFC offering education loans for students pursuing studies abroad.
Some of its key features include:
- Loan Amounts: Up to INR 75 lakhs.
- Interest Rates: Between 11% to 12.5% secured loan, and the range may differ for Unsecured Loan
- Repayment Tenure: Flexible repayment tenures range from 10 to 14 years, including the course duration.
- Moratorium Period: A moratorium period of up to 12 months and the course duration.
- Additional Benefits: Avanse offers extra benefits such as co-applicant options, insurance coverage, and online application processes.
Incred
Incred is a relatively new NBFC in the education loan market, but it has gained traction due to its innovative offerings. Some of its key features include:
- Loan Amounts: Up to INR 45 lakhs
- Interest Rates: Competitive interest rates vary based on the loan amount, the borrower’s profile, and the course of study. For secured loans, the range is between 10.25% to 11.5%. For unsecured loans, the range is between 11.5% and 12.75%.
- Repayment Tenure: 12 years, including the course duration
- Moratorium Period: A moratorium period of up to 12 months after the course is completed.
- Online Application: Incred offers an entirely online application process, making it convenient for borrowers.
Auxilo
Auxilo is another NBFC that specializes in education loans. Some of its key features include:
- Loan Amounts: Up to INR 45 lakhs.
- Interest Rates: The range is between 10.25% to 11.5% for secured loans and 11.5%Â to 12.75% for unsecured loans.
- Repayment Tenure: 12 years, including the course duration
- Moratorium Period: A moratorium period of up to 12 months after the course is completed.
- Additional Benefits: Auxilo offers extra benefits such as co-applicant options, insurance coverage, and online application processes.
In the next section, we will discuss the factors to consider when choosing NBFC for student loans for studying abroad.
Choosing the Best NBFC
The best NBFC for your education loan depends on your specific needs and circumstances. Consider the following factors when making your decision:
- Loan Amount: Determine the total cost of your education, including tuition fees, living expenses, and other associated costs.
- Interest Rates: Compare the interest rates different NBFCs offer and choose the most competitive rate.
- Repayment Tenure: Consider your repayment capacity and choose a tenure that aligns with your financial goals.
- Additional Benefits: Evaluate the extra benefits each NBFC offers, such as insurance coverage, co-applicant options, and online application processes.
By carefully considering your needs and preferences, you can choose the best bank to finance your international education and achieve your academic and career goals. For more information on which NBFC would fit according to your requirements or information on collateral or collateral-free education loans, contact a study abroad consultant offering assistance in this area!
