Starting a journey towards higher education is an important milestone, but it’s frequently accompanied by the challenge of finding the money for living expenses, books, and other related costs. Non-Banking Financial Companies (NBFCs), which offer specialised financial solutions to prospective students, have become important participants in the education loan market in recent years. Many people’s dreams of attending school have been shaped by leading lenders in the NBFC sector.
Top four NBFC education loan providers
- HDFC Credila
HDFC Credila, a subsidiary of HDFC Ltd., has positioned itself as a premier NBFC education loan. Renowned for its flexible terms and hassle-free application process, HDFC Credila stands out in the crowd. It offers loans not only for tuition fees but also for various other aspects such as accommodation, exam fees, and even travel expenses.
| Feature | Description |
| Loan amount | Up to 80 Lakh |
| Interest rates | 11.5% – 12.5% |
| Repayment during course | Simple or Partaial interest |
| Minimum co-applicant income | Rs 30-35k / monthly |
What sets HDFC Credila apart is its personalized approach to loan structuring. The company considers the specific needs and aspirations of each student, offering repayment options that align with their future financial capabilities. Competitive interest rates and a commitment to quick disbursal make HDFC Credila a preferred choice for students and parents alike.
- Avanse Financial Services
Avanse Financial Services is another prominent player in the NBFC education loan landscape. Known for its customer-centric approach, Avanse aims to bridge the financial gap for students aspiring to pursue higher education both in India and abroad.
| Feature | Description |
| Loan amount | Up to 50 Lakh |
| Interest rates | 12.25% – 13% |
| Repayment during course | Partaial simple interest |
| Minimum co-applicant income | Rs 35-40k / monthly |
One of Avanse’s standout features is its focus on holistic development. Apart from tuition fees, the company provides funding for additional expenses like study materials, laptops, and other essential tools for academic success. The flexible repayment options and competitive interest rates make Avanse a reliable choice for those seeking a well-rounded financial solution for their educational pursuits.
- Auxilo Finserve
Auxilo Finserve is carving a niche for itself in the NBFC education loan sector by offering innovative financing solutions. With a commitment to fostering educational growth, Auxilo provides loans not only for traditional courses but also for niche and emerging fields, ensuring that no deserving student is left behind due to financial constraints.
| Feature | Description |
| Loan amount | Up to 65 Lakh |
| Interest rates | 12.5% – 13% |
| Repayment during course | Simple or Partaial interest |
| Minimum co-applicant income | Rs 30-40k / monthly |
Auxilo’s loan approval process is streamlined, leveraging technology to ensure quick and hassle-free disbursals. The company also understands the evolving nature of education and supports students pursuing online courses, skill development programs, and vocational training. Auxilo Finserve’s dedication to inclusive education financing makes it a commendable choice for students with diverse academic interests.
- InCred Education Loans
InCred, a dynamic NBFC, has made a significant impact in the NBFC education loan domain with its student-centric approach. Recognizing the diverse needs of students, InCred provides loans for various courses, including professional degrees, postgraduate programs, and vocational courses.
| Feature | Description |
| Loan amount | Up to 50 Lakh |
| Interest rates | 12.5% – 13.5% |
| Repayment during course | Simple or Partaial interest |
| Minimum co-applicant income | Rs 35-40k / monthly |
What distinguishes InCred is its commitment to financial literacy. The company believes in empowering students and parents with the knowledge to make informed decisions about their education loans. InCred’s user-friendly online platform simplifies the application process, making it accessible to a wide range of applicants. Competitive interest rates and a focus on transparency contribute to InCred’s growing popularity in the education financing landscape.
Benefits of NBFC education loan
NBFC education loan gained prominence due to their flexibility, customer-centric approach, and innovative features. Here are some key advantages of opting for an education loan from NBFCs:
1. Flexible loan structures:
NBFCs often offer flexible loan structures tailored to the specific needs of students. This includes coverage of tuition fees, accommodation, books, and other related expenses. The flexibility allows borrowers to customize their loans based on the unique requirements of their educational pursuits.
- Quick Processing and Disbursal:
NBFCs are known for their streamlined and efficient loan approval processes. Unlike traditional lenders, NBFCs leverage technology to expedite the application and approval processes. This ensures that students can access funds quickly, facilitating timely payment of fees and other educational expenses.
- Holistic financial coverage:
NBFCs often go beyond just tuition fees. They understand the comprehensive nature of educational expenses and may provide loans for various aspects such as exam fees, study materials, laptops, and even travel expenses for students pursuing education abroad. This holistic approach ensures that students have the financial support they need throughout their academic journey. - Technology-Driven Services:
NBFCs leverage technology to enhance customer experience. Online application processes, digital document submissions, and real-time tracking of loan status are common features offered by NBFCs. This not only simplifies the loan application process but also ensures transparency and ease of communication between the borrower and the lender.
- Financial Inclusion:
NBFCs play a crucial role in financial inclusion by catering to a diverse range of courses and institutions. They often extend loans to students pursuing unconventional or niche courses, as well as those enrolled in institutions that might not be covered by traditional lenders. This inclusive approach opens up opportunities for a broader spectrum of students.
- Customer-Centric Approach:
NBFCs typically adopt a customer-centric approach, understanding the unique challenges students face in financing their education. The personalized service and attention to individual needs contribute to a positive borrowing experience for students and their families.
In the dynamic landscape of education financing, NBFCs have become instrumental in providing tailored solutions to meet the diverse needs of students. The aforementioned lenders – HDFC Credila, Avanse Financial Services, Auxilo Finserve, InCred Education Loans, and IIFL Finance – stand out for their commitment to empowering aspiring minds through accessible and flexible financial support.
Aspiring students and their families should carefully evaluate the offerings of these NBFCs, considering factors such as interest rates, repayment terms, and additional benefits. Ultimately, choosing the right education loan provider is a crucial step toward realizing educational dreams without compromising on financial stability.