Non-Banking Financial Companies (NBFCs) play a crucial role in providing education loans to students in India, especially for those who may not qualify for traditional bank loans. These NBFCs offer flexible repayment options and competitive interest rates, making education financing more accessible. Below, we present a list of some of the best NBFCs in India for education loans, along with key factors to consider when choosing an NBFC.
- Credila Financial Services (HDFC Bank Subsidiary):
Credila is among the top NBFCs for education loans, catering to various courses like engineering, management, medicine, and more. Their interest rates start at 9.75%, and the repayment period can extend up to 10 years. Credila also offers customized education loans for studying abroad. - Avanse Financial Services:
Another leading NBFC, Avanse, provides education loans for diverse fields such as engineering, management, law, and more. With an interest rate starting from 10.25%, they offer a repayment period of up to 15 years. Avanse also offers loans for overseas education with flexible repayment options. - InCred:
InCred is a new-age NBFC offering education loans with competitive interest rates and flexible repayment options. They support various courses, including engineering, management, medicine, and more. The interest rate begins at 9.5%, and the repayment period extends up to 10 years. InCred also provides tailored education loans for studying abroad. - Auxilo Finserve:
As one of the leading NBFCs for education loans, Auxilo supports diverse fields like engineering, management, law, and others. Their interest rates start from 10.5%, and the repayment period can go up to 10 years. Auxilo offers loans for studying abroad, providing flexibility in repayment. - Prodigy Finance:
Prodigy Finance is a global NBFC catering to students studying abroad. They offer loans for various courses, including engineering, management, and more. With an interest rate starting from 5.99%, the repayment period can extend up to 15 years. Prodigy Finance stands out by not requiring collateral or co-signers, making it an attractive option for students.
NBFC Education Loan Interest Rate:
Interest rates for education loans by NBFCs in India typically range from 9% to 15%, depending on factors such as the loan amount, repayment period, course type, and borrower’s creditworthiness. Some NBFCs may offer lower interest rates for specific courses or borrowers with good credit scores or co-signers. Ensure to compare the rates and terms before choosing an NBFC.
NBFC Education Loan Without Collateral:
Several NBFCs in India offer unsecured education loans without requiring collateral. While these loans do not demand security, they may come with higher interest rates. Some of the NBFCs providing unsecured education loans are listed below:
Is It Safe to Take an Education Loan from NBFC?
Taking an education loan from an NBFC in India can be a secure option, provided you select a reputable and trustworthy NBFC. Consider the following factors:
- Reputation: Research and choose an NBFC with a good track record in offering education loans. Check online reviews and seek recommendations from trusted sources.
- Transparency: Read and understand the loan terms, interest rates, and other charges. Opt for an NBFC that maintains transparency in its loan processing.
- Customer Service: Select an NBFC with responsive and helpful customer service.
- Regulatory Compliance: Ensure the NBFC is registered with the Reserve Bank of India (RBI) and adheres to regulatory guidelines.
- Loan Features: Compare loan features among different NBFCs to find the best fit for your needs and budget.
Conclusion:
Choosing the right NBFC for your education loan can make a significant difference in your academic journey. Assess your options carefully, considering interest rates, repayment periods, and other features. Always opt for an NBFC that is reliable, transparent, and aligned with your financial needs.