Among the various options available in India, Axis Bank and Auxilo Finserv stand out as two prominent providers of education financing solutions. Axis bank is a financial institution that provides all banking services, including education loans. Whereas, Auxilo is an NBFC (Non Banking Financial Company) which dedicatedly caters to only student loan services. This blog post aims to compare and contrast the education loan offerings from Axis Bank Vs. Auxilo examines factors such as eligibility criteria, interest rates, repayment terms, and additional benefits.
Key Difference Between Axis Bank And Auxilo Education Loan
Axis Bank and Auxilo, are both trusted and famous options if you are looking to finance your studies abroad. Axis bank provides education loan based facilities like GRE Based funding, education loan for higher studios, Prime Abroad education loans, and more.
On the other hand, Auxilo education loan provides flexible and single student loan facilities in eligible countries and universities. Both the banks provide 100% funding for education. However, both differ in terms of student loan margin money, interest rates,etc. The table given below compares these key features in detail:
| Key Features | Axis Bank | Auxilo |
| Loan Upper Limit | Rs 2.5 Cr. | Rs. 25-85 Lakhs |
| Interest Rates | 10-12.5% | 11-13.05% |
| Processing Fees | 0% | 1-2% of the total loan amount |
| Margin Money | 15% | 0% |
| Moratorium Period | Course Period + 6 months | Course Period + 1 year |
| Repayment Period | 15 years | 12 years |
| Collateral Requirement | Flat, non-agricultural land, gold, etc. | Real estate properties, life insurance policies, fixed deposits, NSC, KVP, NSS |
| Co-Applicants | Parents/Legal guardian | Parent/Legal guardian |
Eligibility Criteria For Axis Bank & Auxilo Education Loan
As Axis bank is a financial institution and Auxilo is NBFC, it’s really important that you know their eligibility criteria before applying. Understanding such loan terms and conditions keeps you prepared for a smoother and faster loan process, as you then just have to submit the necessary documents and apply for the loan! Go through the table below to understand the eligibility criteria:
| Axis Bank Eligibility Criteria | Auxilo Eligibility Criteria |
| Indian citizenship is required for the Axis Bank Abroad Education Loan. | Applicants should be an Indian citizen. |
| Prospective loan applicants need to have achieved at least 50% in Class 12 and during their graduation. | They should be at least 18 years old. |
| A co-applicant with a CIBIL score above 600 is necessary. | Admission confirmation from the institute is required before Auxilo disburses the loan. |
| Successful applicants must demonstrate a stable income for the co-applicant to ensure financial reliability for the education loan. | The application must be co-signed by a co-borrower earning in India. |
Documents Required For Axis Bank Vs. Auxilo Education Loan
Before applying for an education loan to study abroad, it’s essential to gather the necessary documents to streamline the application process. These documents serve as proof of eligibility and help the lending institution assess the applicant’s financial reliability and academic credentials. Below is a list of the documents typically required for an education loan for Axis Bank education loan and Auxilo for studying abroad.
| Document | Description |
| Admission Letter | Confirmation of admission from the institution |
| Proof of Identity | Passport, Aadhar card, or other government-issued ID |
| Proof of Address | Utility bills, rental agreement, or other valid documents |
| Academic Records | Transcripts, mark sheets, and certificates from previous education |
| Cost Estimate | Breakdown of expenses, including tuition, accommodation, and other feeshttps://unicreds.com/partners/axis-bankab |
| Income Proof | Salary slips, tax returns, or bank statements of co-applicant |
| Collateral Documents | Property documents, if applicable |
| Loan Application Form | Completed application form provided by the lender |
| Passport Size Photographs | Recent passport size photographs of the applicant and co-applicant |
| Bank Statements | Statements of the co-applicant’s bank account for the last few months |
| PAN Card | Permanent Account Number card of the applicant and co-applicant |
| Loan Agreement | Agreement outlining the terms and conditions of the loan |
| Guarantor Documents | If required, documents of the guarantor providing collateral or guarantee |
Application Process For Axis Bank Vs. Auxilo Education Loan Through UniCreds
When faced with the decision between Axis Bank and Auxilo Education Loan, along with numerous other NBFCs and financial institutions, it can be challenging to navigate the options. That’s where UniCreds steps in to simplify the process for you. Here’s a streamlined approach to applying for education loans through UniCreds:
Initiate the Process: Begin by visiting UniCreds‘ website and providing your basic requirements through a simple form.
Consultation with Loan Expert: A dedicated loan counsellor from UniCreds will reach out to you to comprehensively understand your specific loan needs, the type of collateral you can keep with the bank, and your expenses..
Customised Loan Options: Soon after, you’ll receive a selection of education loan options that align with your requirements and financial capabilities.
Document Assistance: UniCreds will furnish you with a customised checklist of documents necessary for your loan application.
Swift Approval: UniCreds facilitates a swift approval process, ensuring your loan gets sanctioned promptly.
With UniCreds’ assistance, choosing and applying for education loans from leading NBFCs like Axis Bank and Auxilo becomes a hassle-free experience, allowing you to focus on your academic pursuits with peace of mind.
Axis Bank Vs. Auxilo Abroad Education Loan Repayment Process
Axis Bank and Auxilo education loans have different moratorium and student loan repayment periods. Hance, their repayment terms differ. Let’s look at each option’s repayment criteria for better financial planning:
Axis Bank Education Loan Repayment Process
Given below are the repayment details of the Axis Bank education loan. Go through them thoroughly and plan your finances accordingly:
- Axis Bank’s repayment process for abroad education loans starts with students paying simple interest during the student loan moratorium period.
- After the moratorium period, monthly EMIs are introduced, calculated considering factors like interest rate, type of interest, repayment duration, and a breakdown of fees per semester.
- For precise EMI calculations, UniCreds offers a free and highly accurate education loan EMI calculator, aiding in strategic financial planning.
- While Axis Bank Education Loan provides a repayment duration of 15 years, including the moratorium period, many students look for ways to expedite loan settlement.
Auxilo Education Loan Repayment
Auxilo offers flexible repayment terms tailored to suit students’ needs. Let’s understand these terms for a planned repayment of a student loan:
- Repayment of the principal amount for Auxilo Education Loan commences six months after course completion or upon securing employment.
- During this period, students are required to pay a portion of the interest in the utilised amount.
- The terms and conditions of Auxilo Education Loan outline this repayment structure.
Auxilo Or Axis Bank Which Is Better?
Both Axis Bank and Auxilo offer education loans with distinct features, catering to different needs and preferences. The choice between the two depends on individual circumstances and priorities. Here’s a breakdown of their key features:
- Loan Upper Limit: Axis Bank offers a higher upper limit of Rs 2.5 crore compared to Auxilo’s range of Rs. 25-85 lakhs, making Axis Bank more suitable for those requiring larger loan amounts.
- Interest Rates: Axis Bank offers interest rates ranging from 10-12.5%, while Auxilo’s rates range from 11-13.05%. Depending on the specific rate offered and the applicant’s financial situation, one may be more competitive than the other.
- Processing Fees: Axis Bank charges no processing fees, whereas Auxilo charges 1-2% of the total loan amount. Applicants should consider this cost when comparing the overall affordability of the loan.
- Margin Money: Axis Bank requires a margin of 15%, whereas Auxilo does not require any margin money. This could be advantageous for those who may struggle with the initial financial outlay.
- Moratorium Period: Axis Bank offers a moratorium period of Course Period + 6 months, while Auxilo provides a moratorium period of Course Period + 1 year. Auxilo’s longer moratorium period may be beneficial for students needing more time to secure employment before starting repayments.
- Repayment Period: Axis Bank offers a repayment period of 15 years, whereas Auxilo offers 12 years. The longer repayment period provided by Axis Bank may result in lower monthly instalments but may also lead to higher overall interest payments.
Ultimately, the “better” option depends on individual priorities such as loan amount, interest rates, processing fees, and flexibility in repayment terms. Applicants should carefully consider their own financial situation and preferences before making a decision.
FAQs
1. Which bank is better: Axis bank or Auxilo?
Both Axis Bank and Auxilo offer education loans with distinct features. Axis Bank provides a higher loan upper limit, no processing fees, and a longer repayment period, while Auxilo offers a longer moratorium period and a wider range of collateral options.
2. Which bank offers better interest rates for education loans, Auxilo or Axis bank?
Auxilo typically offers education loans with lower interest rates ranging from 11% to 13.05%, while Axis Bank’s interest rates range from 10% to 12.5%.
3. Can you compare the processing fees for education loans at Auxilo and Axis bank?
Axis Bank does not charge processing fees for education loans, whereas Auxilo charges 1-2% of the total loan amount as processing fees.
4. What is the maximum loan amount offered by Auxilo and Axis bank for education purposes?
The maximum loan amount offered by Axis Bank for education purposes is Rs 2.5 crore, whereas Auxilo offers a maximum loan amount ranging from Rs 25 lakhs to Rs 85 lakhs.
5. Are there any specific eligibility criteria that differ between Auxilo and Axis bank education loans?
While both Auxilo and Axis Bank have similar eligibility criteria such as Indian citizenship and admission confirmation from the institute.
6. How do the repayment terms vary between Auxilo and Axis bank education loans?
Auxilo offers a longer moratorium period of Course Period + 1 year compared to Axis Bank’s Course Period + 6 months, and a repayment period of 12 years compared to Axis Bank’s 15 years.
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