Discover the key differences between Avanse and InCred, two leading NBFCs for education loans. Learn which one is better suited for funding your education.
Anam Shams is a seasoned professional in the study abroad field with deep knowledge of admissions and loans. With a passion for helping aspiring students fulfill their academic dreams, Anam.
Updated on: 17 Aug 2024 | Reviewed By: AmanAman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh.
3.66K | 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.
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.
Maximum Loan Amount
INR 20 - 80 Lakhs
INR 20 - 75 Lakhs
Course duration + 1 year
Course duration + 1 year
Simple Interest/ Partial Simple Interest
Simple Interest/ Partial Simple Interest
0.5% - 1% of the loan amount + GST
1% - 1.5% of the loan amount + GST
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?
Give Pre Admission Loans
*Interest rate as of July 2023
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.
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:
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.
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:
NBFC has specific their own set of eligibility criteria, unlike banks. This stems from the way they function and the requirements to make the loans possible. Students who are eligible for an education loan should pay close attention to this as they could lose out. Regarding eligibility requirements, Avanse and InCred are equivalent.
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.
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.
Up to INR 75 Lakhs
Up to INR 80 Lakhs
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 are multiple steps involved in completing your education loan application, from approval to disbursement. To speed up this procedure and ensure that they receive their loan as soon as possible, applicants must pay a processing fee. A portion of the loan amount is typically used to cover processing fees.
| NBFC | Processing Fees |
|---|---|
| Avanse | 1% – 1.5% of the loan amount + GST |
| InCred | 0.5% – 1% of the loan amount + GST |
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
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:
For Avanse education loans, the minimum co-applicant salary varies according to the country of study abroad as shown here:
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.
Check Your Education Loan Eligibility
Ask from a community of 10K+ peers, alumni and experts
