List of NBFC providing Education Loan

Success in life can frequently be attained through a quality education. Studying in foreign universities increases one’s chances of landing a better job after graduation. In many fields, this is also considered to be an excellent learning opportunity. All those who have the desire to study abroad are greatly concerned about the high cost of living and education combined. That’s when a loan for education becomes useful. In India, education loans are offered by nearly all banks, as well as a large number of NBFCs and fintech lenders. We present to you a list of NBFC providing education loan for study abroad.

Major characteristics of Education Loans

Education loans in India offer financial support for students pursuing higher education abroad, covering a diverse array of subjects such as management, architecture, arts, fashion, and law. The loan amount ranges from Rs 4 lakhs to Rs 40 lakhs, with exceptions considered on a case-by-case basis. Individuals aged 18-35 can apply, requiring a co-applicant, often a parent, sibling, or close relative, whose credit score influences loan approval. A margin of 5-15% may be needed from the applicant. The loan encompasses various expenses, including tuition, books, accommodation, travel, and study-related costs. During the moratorium period, only simple interest is charged, allowing the borrower to pay only interest until the completion of studies. The loan tenure, inclusive of the moratorium, can extend up to 15 years, contingent on the lender’s policies. Additionally, the interest paid on EMI qualifies for income tax deduction under Section 80E, offering financial relief to borrowers.

List of Top NBFC providing Education Loan

In addition to traditional banks, numerous Non-Banking Financial Companies (NBFCs) provide education loans for higher studies abroad. Frequently, NBFCs offer more lenient eligibility criteria, making it easier for applicants to qualify. They are also known for being more flexible in financing courses outside the mainstream. The loan processing with NBFCs is often expedited, although they may require additional collateral based on the credit score and the chosen course of study. It’s noteworthy that NBFCs typically do not permit a moratorium on EMI payments for education loans, and they may carry a higher interest rate compared to banks.

1. Avanse education loans

Avanse is a modern education loan provider that was founded in 2013 with the goal of providing easy loans to Indian students wishing to pursue studies overseas. The following are specifics about Avanse’s student loans:

2. HDFC Credila

HDFC Credila stands as India’s pioneering dedicated education loan provider, established with the specific objective of empowering students to realize their dreams of pursuing higher education abroad. Notably, HDFC Credila distinguishes itself by offering loan approval even before the confirmation of admission, providing prospective students with a valuable financial solution at an early stage in their application process. This proactive approach sets HDFC Credila apart, demonstrating a commitment to supporting aspiring scholars in their academic endeavors by ensuring timely access to the necessary financial resources, thus facilitating a smoother transition into international education.

3. Auxilo

Auxilo, a recent entrant in the education loan sector, has swiftly gained recognition by successfully disbursing educational loans to numerous students. Despite being a newcomer, Auxilo has managed to establish itself as a trusted and reliable source of financial support for students pursuing higher education. This accomplishment reflects the company’s commitment to meeting the evolving needs of students and highlights its growing impact on the education financing landscape. Auxilo’s ability to provide educational loans effectively underscores its dedication to facilitating access to quality education for a diverse range of students, contributing to their academic pursuits and future aspirations.

4. InCred

InCred, as a Non-Banking Financial Company (NBFC), extends its services to cater to the educational financing needs of all aspiring students. This NBFC has positioned itself as a comprehensive solution for individuals seeking financial support to pursue their academic ambitions. InCred’s inclusive approach underscores its commitment to making education loans accessible to a broad spectrum of students, acknowledging the diverse educational paths and aspirations of the student community. By offering such comprehensive support, InCred aims to play a pivotal role in facilitating educational opportunities and empowering students to achieve their academic goals without financial constraints.

List of NBFC providing Education Loan

The following is a compilation of some notable Non-Banking Financial Companies (NBFCs) in India that provide education loans:

• Credila Financial Services (HDFC Bank subsidiary)
• Avanse Financial Services
• InCred
• Auxilo Finserve
• Prodigy Finance
• Eduvanz
• IIFL Finance
• Axis Bank Education Loan
• Edelweiss Education Loan
• Power Finance Corporation Education Loan
• Shiksha Financial Services India
• HDFC Education Loan
• Muthoot Finance Education Loan
• Aditya Birla Finance Education Loan
• Fincare Small Finance Bank Education Loan

It’s crucial to note that this list is not exhaustive, and there may be other NBFCs offering education loans in India. To make an informed decision, it is advisable to compare factors such as interest rates, loan terms, and associated charges among different NBFCs. This will help individuals select the most suitable option based on their specific needs and financial considerations.