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Best NBFC for Education Loan
Best NBFC for Education Loan: Non-Banking Financial Companies (NBFCs) have emerged as an important source of education loans in India, especially for students who do not qualify for loans from traditional banks. These NBFCs provide education loans with flexible repayment options and lower interest rates. In this article, we will discuss the best NBFCs for education loans in India.
1. Credila Financial Services
Credila Financial Services is a subsidiary of HDFC Bank and is one of the best NBFCs for education loans in India. The company offers education loans for a variety of courses, including engineering, management, medicine, and others. The interest rate starts from 9.75%, and the repayment period can go up to 10 years. Credila also offers customized education loans for studying abroad.
2. Avanse Financial Services
Avanse Financial Services is another leading NBFC for education loans in India. The company offers education loans for a wide range of courses, including engineering, management, law, and others. The interest rate starts from 10.25%, and the repayment period can go up to 15 years. Avanse also offers loans for studying abroad, with flexible repayment options.
3. InCred
InCred is a new-age NBFC that offers education loans with flexible repayment options and competitive interest rates. The company offers education loans for a variety of courses, including engineering, management, medicine, and others. The interest rate starts from 9.5%, and the repayment period can go up to 10 years. InCred also offers loans for studying abroad, with customized repayment options.
4. Auxilo Finserve
Auxilo Finserve is another leading NBFC for education loans in India. The company offers education loans for a wide range of courses, including engineering, management, law, and others. The interest rate starts from 10.5%, and the repayment period can go up to 10 years. Auxilo also offers loans for studying abroad, with flexible repayment options.
5. Prodigy Finance
Prodigy Finance is a global NBFC that offers education loans for students studying abroad. The company offers loans for a variety of courses, including engineering, management, and others. The interest rate starts from 5.99%, and the repayment period can go up to 15 years. Prodigy Finance also offers loans without collateral or co-signers, making it an attractive option for students.
NBFC Education Loan Interest Rate
The interest rates for education loans offered by NBFCs in India can vary depending on various factors such as the loan amount, repayment period, type of course, and creditworthiness of the borrower. Generally, NBFCs offer education loan interest rates ranging from 9% to 15%.
However, some NBFCs may offer lower interest rates for certain courses or for borrowers with a good credit score or co-signers. It is also important to note that some NBFCs may charge processing fees or other charges, which can increase the overall cost of the loan.
Before selecting an NBFC for an education loan, it is important to compare the interest rates and other charges of different options available and choose the one that best suits your needs and budget. Additionally, it is recommended to read the loan terms and conditions carefully and clarify any doubts with the NBFC representative before applying for the loan.
Education Loan NBFC List
Here is a list of some of the NBFCs in India that offer 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 is important to note that this is not an exhaustive list and there may be other NBFCs that offer education loans in India. Additionally, it is recommended to compare the interest rates, loan terms, and other charges of different NBFCs and choose the one that best suits your needs and budget.
NBFC Education Loan Without Collateral
Many NBFCs in India offer education loans without requiring any collateral or security. These loans are commonly known as unsecured education loans. Here are some of the NBFCs in India that offer education loans without collateral:
- Credila Financial Services (HDFC Bank subsidiary)
- Avanse Financial Services
- InCred
- Eduvanz
- IIFL Finance
- Prodigy Finance
- Shiksha Financial Services India
- HDFC Education Loan
- Aditya Birla Finance Education Loan
- Fincare Small Finance Bank Education Loan
It is important to note that while these loans do not require collateral or security, they may have higher interest rates compared to secured education loans. The loan amount and eligibility criteria may also differ based on the borrower’s creditworthiness and other factors.
Is It Safe to Take Education Loan from NBFC?
Taking an education loan from an NBFC in India can be a safe and reliable option, provided you choose a reputable and trustworthy NBFC. Here are some factors to consider before taking an education loan from an NBFC:
- Reputation: It is important to choose an NBFC with a good reputation and track record of offering education loans. You can research online, check reviews and ratings, and also seek recommendations from family and friends who may have taken education loans from an NBFC.
- Transparency: Make sure to read and understand the loan terms and conditions carefully, including the interest rates, repayment period, and any other charges. Choose an NBFC that is transparent in their loan processing and offers clear and concise information to borrowers.
- Customer service: Choose an NBFC that has good customer service and is responsive to your queries and concerns. A reliable NBFC should have a customer service team that is easily accessible and provides timely assistance.
- Regulatory compliance: It is important to choose an NBFC that is registered with the Reserve Bank of India (RBI) and follows all the regulatory guidelines for offering education loans. You can verify the NBFC’s registration with the RBI on their website or by checking the RBI’s list of registered NBFCs.
- Loan features: Compare the loan features of different NBFCs before making a decision. This includes interest rates, loan amount, repayment period, and other charges. Choose an NBFC that offers flexible loan features that best suit your needs and budget.
FAQs
Which NBFC is best for education loan in Canada?
some popular options for education loans for studying in Canada in India include Avanse, Incred, and Auxilo.
Which bank is best for education loan abroad?
Several Indian banks offer education loans for studying abroad, but the best one for you depends on various factors. However, some popular options for education loans for studying abroad in India include State Bank of India, HDFC Credila, Axis Bank, and ICICI Bank. It is advisable to compare the interest rates, repayment options, and other terms and conditions offered by these banks before making a decision.
Which type of education loan is best?
The best type of education loan in India depends on your individual needs and financial situation. However, a government-subsidized education loan such as the Central Sector Interest Subsidy Scheme (CSIS) can be a good option as it provides interest subsidy during the moratorium period. Additionally, loans from reputed banks with low interest rates and flexible repayment options can also be considered.
Which bank is easiest to get an education loan?
It’s difficult to pinpoint a specific bank as the easiest to get an education loan in India, as it depends on various factors such as your credit score, income, and academic background. However, some popular options for education loans in India include State Bank of India, HDFC Bank, and ICICI Bank.
Final Words:
In conclusion, these are some of the best NBFCs for education loans in India. When selecting an NBFC for an education loan, it is important to consider factors such as interest rates, repayment options, and eligibility criteria. It is also important to compare the different options available and choose the one that best suits your needs.
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