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Avanse Vs InCred: Which Lender Should You Choose?

avanse vs incred

Many students request for their education loans from banks. However, with the growth of the financial sector, Non-Banking Financial Companies have proved to be equally able to fund students pursuing their studies abroad. Avanse vs InCred has been the prominent competition for the top seat on the best NBFC for education loans.

Interest Rates12% – 13.25%11.65% – 13.5%
Maximum Loan AmountUp to 75 LakhsUp to 80 Lakhs
Moratorium PeriodCourse period + 1 year
Repayment Terms12 – 15 years
Margin Money ChargedNil
Processing Fees1% – 1.5% of the loan amount + GST0.5% – 1% of the loan amount + GST

Eligibility Criteria

Unlike banks, NBFC has its unique eligibility criteria. This is derived from how they operate and the necessities for facilitating the loans. Students must pay much attention to eligibility as they might miss out on the education loan. Avanse and InCred are the same on the eligibility criteria.

NBFCEligibility Criteria
Avanse-Must be of Indian nationality
-Must be over 18 years
-Must have confirmed admission before the final disbursal
-Must have a co-borrower earning in India
InCred-Must be an Indian citizen/Indian passport holder
-Must have or plan to enrol in an eligible course
-Must have an Indian co-applicant, e.g., parent/guardian

Additional qualifications can apply to Indian residents who aren’t citizens or citizens not currently living in the country.

Interest Rates

Interest rates on Avanse and InCred education loans will determine how much you’ll repay. These interest rates are not fixed and are subject to change depending on various factors such as loan amount and tenure. The education loan interest rates are negotiable between the lender and borrower, and you can use UniCreds’ specialists to help you get the best deal.

NBFCInterest Rates
Avanse12% – 13.25%
InCred11.65% – 13.5%

You can quickly determine your interest rates on Avanse vs InCred education loans by using an EMI calculator for education loans.

Processing Fee

To finalise your education loan application, there are several stages that the loan needs to go through, from submission to disbursement. Applicants must pay a processing fee to help facilitate this process and get their loan as soon as possible. Processing fees are usually a percentage of the loan amount.

NBFCProcessing Fees
Avanse1% – 1.5% of the loan amount + GST
InCred0.5% – 1% of the loan amount + GST

Avanse education loans have higher processing fees compared to InCred options.

Maximum Loan Amount

When determining which NBFC is better, Avanse or InCred, you should consider the maximum loan amount given. This will let you know if the option works depending on your needs and the equivalent amount to cover them. However, both have a minimum loan amount of INR 20 lakhs.

NBFCMaximum Loan Amount
AvanseUp to 75 Lakhs
InCredUp to 80 Lakhs

Moratorium Period

A grace period is given to students before they start repaying their Avanse vs InCred abroad education loans. The period of moratorium allows the student to finish their studies at ease and look for a source of income before the financial institution starts requesting the first instalment.

NBFCMoratorium Period
AvanseCourse period + 1 year

Despite having a moratorium period, you can start making payments earlier if you’re in a position to.

Margin Money Charged

Margin money is an amount you give as a downpayment to certify that you have begun sourcing funds and need a boost to finalise the payment. It also shows your resourceful capability and encourages the lender to give you an education loan. However, margin money is only required for financial institutions, usually public banks, since they don’t 100% fund your studies abroad.

NBFCMargin Money Charged

Repayment Terms

After loan disbursement, the lender must repay education loans within a particular timeline. This timeframe is agreed upon during the negotiations, and you must complete the payments within the period. There’s no harm in meeting the payments before, but in some cases, that affects the dynamics of your interest rates, and penalties can be given.

NBFCRepayment Terms
Avanse12 – 15 years

Types Of Collateral

NBFCs majorly offer secured loans. Collateral is mandatory for such loans. When choosing Avanse or InCred, which is better, it is essential to consider your collaterals and whether the lender will accept them. Collateral is your security in case you fail to pay the loan. In default cases, the lender can sell your collateral to recover the balance.

NBFCTypes Of Collateral
Avanse-Fixed Deposit
-Life insurance
-Residential property
-Agricultural land
InCred-Residential properties that aren’t subject to a permanent loan (apartment, house, or flat)

Your collateral should have a value equal to or more than the requested loan amount to be considered.

Countries Each Bank Caters To

It’s essential to consider the countries in which Avanse and InCred have legal jurisdictions when applying for education loans to study abroad. First, check if the country you study in is listed on the official website.

NBFCCountries Each Bank Caters To
Avansethe USA, the UK, Canada, Germany, Australia, Ireland, France, Switzerland, etc
InCredthe UK, the USA, Canada, Australia, Germany, France, New Zealand, etc.

Which Of The Two Is UniCreds’ Partner?

UniCreds can help you get your education loan from either of the NBFCs.


Which Bank Is Better, Avanse Or InCred?

Avanse is known to be superior to InCred because of its reach and reputation, but they offer almost similar terms, with InCred winning on various aspects.

Which Bank Offers Better Interest Rates For Education Loans, Avanse Or InCred?

InCred offers better interest rates.

Can You Compare The Processing Fees For Education Loans At Avanse And InCred?

InCred has lower processing fees than Avanse.

What Is The Maximum Loan Amount Offered By Avanse And InCreds For Education Purposes?

Avanse offers up to 75 Lakhs and InCred up to 80 Lakhs

Are There Any Specific Eligibility Criteria That Differ Between Avanse And InCred Education Loans?

Eligibility criteria are the same for both NBFCs.

How Do The Repayment Terms Vary Between Avanse And InCred Education Loans?

They have identical repayment terms of 12 – 15 years.

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avanse vs incred

Avanse Vs InCred: Which Lender Should You Choose?

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