Choosing how to finance your education is one of the most critical decisions. Avanse Finance and Prodigy Finance are the two best options if you’re a student in India or planning to study abroad. This blog breaks down the Avanse Vs. Prodigy Finance education loans. We’re here to help you understand these choices so you can make a smart decision about your education and future.
Key Takeaways:
- Avanse Finance provides education loans to Indian students to study abroad, whereas Prodigy Finance provides education loans to students from developing countries.
- The maximum loan amount for Avanse and Prodigy Finance is INR 75 lakhs and 100% of the cost of attendance, respectively.
- Avanse and Prodigy’s interest rates range from 10% to 16.5% and 11.8%, respectively.
- Avanse requires collateral and a co-borrower, whereas Prodigy doesn’t. Hence, Avanse needs co-borrower and co-applicant documents, and Prodigy doesn’t.
- Avanse has its prominence in 50+ nations and Prodigy 150 countries.
- Avanse and Prodigy provide separate perks to the students, and it’s essential to scrutinise each and choose the one that suits your requirements.
Avanse Vs. Prodigy Finance Education Loan – Key Features
Avanse Financial Services: Focused on empowering students to pursue academic goals. As a modern, tech-driven NBFC, it offers personalised education financing solutions to deserving Indian students, aiming to democratise education access. Its comprehensive range of solutions caters to diverse education needs.
Prodigy Finance: Stands as an international student loan provider, offering financial support to students from developing nations enrolled in prestigious overseas universities. In contrast to traditional lenders, which emphasise credit history and collateral, Prodigy Finance adopts a progressive approach, evaluating applicants based on anticipated future earnings and academic excellence.
The following table differentiates between Avanse Vs. Prodigy Finance education loan key features.
| Key Features | Avanse Education Loan | Prodigy Finance Education Loan |
| Loan Amount | INR 10 Lakhs to INR 75 Lakhs | 100% cost of attendance |
| Rate of Interest | 10%-16.5% | 11.8% |
| Repayment Tenure | 10 years | 7-20 years |
| Moratorium Period | 6 months post-course completion | 6 months post-course completion |
| Collateral Option | Immovable property, Fixed Deposits, Government Bonds, Life insurance, agricultural land | Not Required |
| Processing Fees | 1-2% of the total loan amount | NIL |
| Co-borrower Option | Required | Not Required |
| Tax Benefits | Section 80E | NA |
| Courses Covered | Higher education in abroad universities. | Higher Education in Top Tier Universities |
This shows that both Avanse Finance and Prodigy Finance differ in interest rates, collateral requirements, tax benefits, etc. Now, let’s hop on to their eligibility criteria.
Avanse Finance Vs. Prodigy Finance Education Loan – Eligibility Criteria
Avanse and Prodigy Finance have captured the attention of aspiring students due to their competitive interest rates, flexible repayment structures, and a range of features designed to address their needs. To assist in making an informed decision, the table below compares the eligibility criteria of Avanse Vs—Prodigy Finance education loans. Let’s delve in!
| Avanse Finance | Prodigy Finance |
| Indian citizens who are 18 or older can apply for student loans | You must be admitted to a school or university they support |
| Should produce a university admission letter before the final disbursal of the loan | You must be looking to study abroad |
| Should have a co-borrower who earns in India | You must reside in one of the countries they support. |
This was about the student-based eligibility criteria. The most important thing that you must know is that Avanse Finance has a few eligibility criteria for Co-borrowers as well-
- Co-borrowers must be Indian citizens.
- A co-borrower must have a check-writing account at any Indian bank.
As you can see when it comes to Avanse Finance Vs. Prodigy Finance Education Loan eligibility criteria both demand very few terms and conditions.
Now that we have explored both the banks’ eligibility criteria, let’s look at some of the advantages of Avanse Finance vs. Prodigy Finance Education Loan.
Avanse Vs. Prodigy Finance Education Loan – Benefits
Every financial institution has different benefits to offer to each of its customers. Likewise, Avanse and Prodigy Finance have their own set of benefits. Let’s have a look at each of them.
Why Choose Avanse Finance Education Loan?
Avanse Finance comes with a bundle of benefits as stated below-
1) If you plan to study abroad, Avanse Finance provides 100% financing for abroad studies. This includes tuition fees, books, travel, living, and other costs.
2) It has unsecured and secured loan options with unsecured loans up to Rs.75 lacs.
3) You get your loan sanctioned within 72 hours.
4) Avanse offers attractive interest rates and processing fees starting from 1 %.
5) You have flexible repayment options with loan tenure of up to 15 years.
Now, let’s look at the benefits of the Prodigy Finance Education Loan.
Why Choose Prodigy Finance Education Loan?
Prodigy Finance comes with a set of benefits given below-
1) Your future earning potential plays a role in the approval process, eliminating the need for a co-signer or collateral.
2) Prodigy Finance supports students from a wider range of countries, with a credit model covering 150 nations.
3) Their straightforward eligibility criteria cater to students studying at diverse institutions worldwide.
4) Upon graduation, a grace period precedes loan repayments, and early repayment incurs no additional charges.
5) Beyond financial assistance, they provide value-added services to enhance your international student experience.
Now that we have looked into the benefits of Avanse Finance Vs. Prodigy Finance education loan, let’s cover the documentation and application process of each.
Avanse Vs. Prodigy Finance Education Loan – Documentation and Application Process
The most crucial step in securing any type of loan is the documentation and application process. If your documents are right, the application process goes smoothly. So, in this section, we have listed documentation and application of Avanse and Prodigy Finance education loans separately for you. Here we go!
Avanse Finance Documentation And Education Loan Application Process
First, let’s get your documentation right. Given below is a list of documents you’ll need to apply for an Avanse Finance Education loan –
For study-abroad students
1. Identity Details:
This includes your PAN card, Aadhar card, Voter ID, Valid Passport, Driver’s license, and Birth Certificate. In short, the documents that mention your name, age, address and date of birth.
2. Academic Documents:
Gather all your grade 12 and graduation results, as well as the results of your admission tests – including GREs, GMATs, LSATs, and SATs. Organise all your scores, as the university will be reviewing them all. Carry the acceptance letter you received from the university.
3. Financial Documents:
Bank statements for the past 6 months are required. As a result, the education loan provider will be assured that you will be able to repay the loan.
Just as an applicant/student requires financial documents, a co-applicant also needs specific documents to apply for the loan as a supporter of the main applicant/student.
Let’s have a look at them-
- Co-applicant details are required as they share responsibility for the applicant. Co-applicants must provide KYC documents, proof of residency, a consent letter, and the last 6 months’ bank statements.
- Non-resident Indian (NRI) co-applicants must include visa and work permit copies and a power of attorney.
Documents for students applying for higher education in India through Avanse Finance –
- Student KYC And Educational Documents:
Gather all your ID proofs like PAN Card, Adhaar Card, Passport, Voter ID, Driving Licence, etc. Additionally, all your mark sheets starting from 12th grade onwards and a graduation certificate will be required.
2. Details Regarding The Course and Fees:
The admission letter/course brochure and fee breakup will be needed for the bank to quote your loan amount.
3. Co-Borrower KYC And Income Details
As mentioned above, the co-borrower also needs his KYC (ID proofs) and income details (bank statement, salary slips) to be eligible as a co-applicant.
4. Collateral Documents
If your loan amount exceeds 75 lacs, you must submit your collateral documents of immovable property, bond, life insurance, RDs, or whichever collateral you choose to keep with the bank.
Now, here’s the application process for you-
Avanse Finance Education Loan Application Process
Avanse’s loan application process is easy if you have all your documents. Let’s go through-
For Study Abroad Students –
Step 1: Create an account on their website and fill out the education loan for studying abroad application online
Step 2: Speak to their education loan study abroad consultants
Step 3: Send them your documents
Step 4: Your loan will be sanctioned in 72 hours
Well, that’s pretty much it! Now, let’s dive into the Prodigy Finance Education Loan Process.
Prodigy Finance Documentation & Education Loan Process
Below is a list of mandatory documents to apply for an education loan through Prodigy Finance.
- Your Identity proof
You’ll be required to upload your passport or any proof of ID that has your picture and other personal information.
- Proof of Adress
This document should mention your full name and residential address. This should match what you have mentioned in your application.
- Admission Letter
To obtain a loan, the bank will need a letter, I-20, or email from your school with your name, school, course, and an indication that you have been accepted. Your application must match the course information.
- Your Credit Report
Additionally, the bank requires a credit report outlining your credit history from a specific country’s credit reference agency. You can submit a “No hit” or “No data” report if you haven’t previously used credit.
As Prodigy Finance doesn’t require a co-borrower or collateral to apply for an education loan, no related documents are required.
Prodigy Finance Education Loan Application Process
Step 1: Register on their website and tell them more about your study plans.
Step 2: Apply for funding depending on your course. You can even get a customised quote from the bank.
Step 3: Accept the quote that’s right for you and upload a few documents.
Step 4: Get your loan approved and receive the amount within days.
Hope this section gave you a clear understanding of the documentation and loan application process of Avanse Vs—Prodigy Finance education loans.
Now, it’s time for the final verdict!
Avanse Vs. Prodigy Finance Education Loan – Which One You Should Choose?
We have seen that both Avanse and Prodigy Finance have their own set of benefits. However, Avanse helps Indian students study abroad and funds their higher education in India. Prodigy Finance funds the study abroad education of students from developing countries. However, both banks have their benefits, eligibility criteria, documentation process, and key features.
Choosing between Avanse Finance Vs. Prodigy Finance education loan depends upon your financial commitments and capacity, the country and the course you plan to study and other factors. It’s important to scrutinise and compare the two based on your needs thoroughly.
Hope this blog helped! If you have read through the end, take some time to go through UniCreds! We ease your study abroad education loan process while you sit back and relax.
FAQs
1) Can I transfer my education loan from another lender to Avanse?
Yes. Avanse offers affordable balance transfers so you can get us to refinance your education loan.
2) Are Avanse and Prodigy Finance legal?
Avanse and Prodigy Finance are approved by RBI and FCA, respectively.
3) How many countries do Avanse and Prodigy Finance support?
Avanse supports 50+ countries, and Prodigy Finance supports 150 countries.
4) Is Prodigy Finance in India?
There are more than 1051 institutes spread over 19 countries for which Prodigy can provide loans to students from India.
5) What is the CIBIL Score required for Avanse and Prodigy Education Loan?
For an education loan through Avanse, you’ll need a 650+ CIBIL score and for Prodigy, no credit score is required.
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