When considering financing options for education, Avanse and Leap Finance stand out as prominent choices for students seeking assistance in funding their academic pursuits. Both institutions offer customised education loans designed to meet the diverse needs of students, whether for undergraduate, postgraduate, or professional courses. Each lender may have unique features and eligibility criteria, making it crucial for students to carefully compare and evaluate their options before making a decision. In this comparison, we’ll explore the key offerings of Avanse Vs. Leap Finance education loan to assist students in making an informed choice that aligns with their financial needs and educational aspirations.
Difference Between Avanse Vs. Leap Finance Education Loan
Avanse is a non-banking financial corporation (NBFC), that specialises in education finance. Offering a range of loans customised to diverse educational needs, Avanse simplifies the application process, ensuring students can access funds with ease. Applicants can initiate the Avanse education loan process before enrollment, though disbursal occurs upon confirmation of admission.
On the other hand, Leap Finance Education Loan has earned the confidence of numerous young Indian students, primarily those studying in the United States and Canada, owing to its provision of top-notch college financing. Its appeal lies in its minimal paperwork prerequisites, fair interest rates, and proficient counselling services.. In the table given below, we will compare the education loan interest rates, loan limits, processing fees, etc. of Avanse Vs. Leap Finance education loan:
| Avanse Vs. Leap Finance Education Loan Overview | ||
| Key Features | Avanse | Leap Finance |
| Loan Upper Limit | Rs. 1.5 Cr. | Rs. 1 Cr. |
| Interest Rates | 10.75-13% | 8.5% to 10.95% |
| Processing Fees | 1% to 2% of the loan amount | 1.5% to 2% of the loan amount |
| Moratorium Period | Course duration+6 months | Course duration + 6 months |
| Repayment Tenure | 10 years | 7 to 10 years depending on the profile |
| Co-Applicant | Parents, guardians, or siblings | Parent, legal guardian, sibling |
Avanse Vs. Leap Finance Abroad Education Loan Eligibility Criteria
When comparing the eligibility criteria for Avanse and Leap Finance education loans, several commonalities and differences emerge. Both lenders typically require applicants to be Indian citizens pursuing higher education either domestically or abroad. Additionally, applicants must demonstrate admission or intent to enrol in a recognised educational institution. However, specific requirements may vary, which are as follows:
| Eligibility Criteria | Avanse Education Loan | Leap Finance Education Loan |
| Age Requirement | Applicants must be at least 18 years old. | Students must be above the age of 18. |
| Citizenship | Indian citizenship is mandatory. | Applicants must be Indian citizens. |
| Admission Confirmation | Final loan disbursement requires confirmed admission. | Students must have secured or applied for admission abroad. |
| Co-Borrower Requirement | A co-borrower is necessary, typically a parent, guardian, relative, or sibling. | Not explicitly mentioned, but may be required. |
| Co-Borrower’s Bank Account | Co-borrower must have an Indian bank account with cheque writing facilities. | Should be an Indian bank account holder with cheque writing facilities. |
| Credit Score | A good credit score may be necessary for larger loan amounts. | Strong academic record preferred. |
| Collateral Requirement | Collateral may be required for larger loan amounts for lower interest rates. | No collateral is required. |
| Preferred Courses | Graduate or post-graduate courses or other job-oriented professional or technical courses. | Preference for STEM courses. |
Documents Required For Avanse & Leap Finance Education Loan
Avanse and Leap Finance require a set of essential documents to process education loan applications efficiently. These documents are crucial for verifying the identity, financial status, and academic credentials of the applicant. As Leap Finance provides education loans without collateral and Avanse gives education loans based on different types of collateral, understanding the difference between the paperwork is a must. Glance through the table below for a detailed overview:
| Document Type | Description |
| Personal Identification | Valid passport, Aadhaar card, driving licence, or PAN card |
| Academic Records | Mark sheets and certificates of qualifying exams |
| Admission Letter | Proof of admission to the educational institution |
| Proof of Residence | Utility bills, rental agreement, or address verification |
| Income Proof | Salary slips, income tax returns, or bank statements |
| Co-borrower Documents | If applicable, documents of the co-borrower/guarantor |
| Collateral Documents | Property documents or other collateral details (if required) |
The Application Process For Avanse Vs. Leap Finance Education Loan Through UniCreds
Choosing between Avanse and Leap Finance can be tough. Also, there are a lot of other NBFCs and financial institutions out there that can add to your confusion. Hence UniCreds can help you select and apply for an education loan from the top NBFCs in India. Given below is a process of applying for education loans through UniCreds:
- Step 1: Visit UniCreds, and help us get your basic requirements by filling up the form available on our website.
- Step 2: Our loan counsellor will get in touch with you to understand your loan requirements.
- Step 3: You’ll be soon given numerous education loan options that match your requirements and budget.
- Step 4: We give you a customised set of documents that you can submit.
- Step 5: Wait for your loan to get sanctioned in a jiffy!
Avanse & Leap Finance Education Loan Repayment Process
Upon the disbursement of the loan, borrowers are provided with an education loan repayment schedule outlining the instalment amounts, due dates, and preferred modes of payment. Typically, repayment begins after the completion of the course or a specified grace period thereafter. Borrowers can choose from various repayment options, including online transfers, standing instructions, or post-dated cheques, depending on their convenience. Given below are the repayment terms for Avanse and Leap Finance education loans:
Avanse Education Loan:
- Moratorium Period: The moratorium period in education loan for Avanse education loans is the course duration plus an additional 6 months. During this period, you don’t have to make any repayments.
- Repayment Tenure: The maximum repayment tenure for Avanse education loans is 10 years. This means that after the moratorium period ends, you have up to 10 years to fully repay the loan amount along with interest.
Leap Finance Education Loan:
- Moratorium Period: Similar to Avanse, the moratorium period for Leap Finance education loans is the course duration plus an additional 6 months, during which no repayments are required.
- Repayment Tenure: The repayment tenure for Leap Finance education loans varies from 7 to 10 years, depending on the applicant’s profile. This means that after the moratorium period ends, you will have between 7 and 10 years to fully repay the loan amount along with interest, based on your specific profile and eligibility criteria.
It’s worth noting that both Avanse and Leap Finance allow co-applicants, such as parents, guardians, or siblings, to enhance their loan eligibility and repayment capacity..
Avanse Or Leap Finance Which Is Better?
Both have their advantages and disadvantages, and the choice between the two would depend on your specific requirements and eligibility criteria. Here’s a comparison of the key factors:
Loan Upper Limit:
Avanse offers a higher loan upper limit of Rs. 1.5 crores, while Leap Finance offers a maximum of Rs. 1 crore. If you require a higher loan amount, Avanse may be a better choice.
Interest Rates:
Leap Finance offers lower interest rates ranging from 8.5% to 10.95%, compared to Avanse’s rates of 10.75% to 13%. If you’re looking for a more affordable interest rate, Leap Finance may be a better option.
Processing Fees:
Both lenders have similar processing fees ranging from 1% to 2% of the loan amount. There’s no significant advantage in terms of processing fees.
Moratorium Period:
Both lenders offer a moratorium period of the course duration plus 6 months, which is a standard practice.
Repayment Tenure:
Avanse offers a fixed repayment tenure of 10 years, while Leap Finance offers a range of 7 to 10 years depending on the applicant’s profile. If you prefer a longer repayment tenure, Avanse may be better, but Leap Finance can be more flexible based on your profile.
Co-Applicant Eligibility:
Both lenders allow parents, guardians, or siblings as co-applicants, which can improve your eligibility and repayment capacity.
Ultimately, the choice between Avanse and Leap Finance will depend on your specific loan requirements, eligibility criteria, and personal preferences. It’s advisable to thoroughly research and compare the terms and conditions of both lenders and explore other options in the market before making a decision.
FAQs
Q1. Which bank is better: Avanse or Leap Finance?
Between Avanse and Leap Finance, Leap Finance may be considered better for borrowers prioritising lower interest rates, while Avanse could be preferable for those requiring higher loan amounts.
Q2. Which bank offers better interest rates for education loans, Leap Finance or Avanse?
Leap Finance offers better interest rates ranging from 8.5% to 10.95% compared to Avanse’s interest rates of 10.75% to 13% for education loans.
Q3. Can you compare the processing fees for education loans at Leap Finance and Avanse?
Both Leap Finance and Avanse charge similar processing fees for education loans, ranging from 1% to 2% of the loan amount. There is no significant difference in the processing fees charged by the two lenders.
Q4. What is the maximum loan amount offered by Leap Finance and Avanse for education purposes?
Avanse offers a higher maximum loan amount of Rs. 1.5 crores for education purposes, while Leap Finance has a lower maximum limit of Rs. 1 crore.
Q5. Are there any specific eligibility criteria that differ between Leap Finance and Avanse education loans?
Yes, there are some key differences in eligibility criteria. Avanse requires a co-borrower and may consider credit scores and collateral, while Leap Finance focuses more on academic records and does not require collateral.
Q6. How do the repayment terms vary between Leap Finance and Avanse education loans?
While both lenders offer a moratorium period of course duration plus 6 months, Avanse provides a fixed repayment tenure of 10 years, whereas Leap Finance’s repayment tenure ranges from 7 to 10 years, depending on the applicant’s profile.
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