Educational Loans from Avanse Financial Services Ltd: Pros, Cons, and Alternatives
Considering taking an educational loan from Avanse Financial Services Ltd? This article will help you understand the pros and cons of choosing Avanse over other options, and introduce you to reliable alternatives that could be better suited to your needs.
Research and Reviews
Before making a final decision, it is essential to conduct thorough research and read reviews from other borrowers. Customer feedback, interest rates, and terms are crucial factors to consider. Consulting with financial advisors can also provide a more informed perspective on your loan decision.
Pros and Cons of Avanse Financial Services
Avnase Financial Services Ltd operates as a Non-Banking Financial Company (NBFC), and like other NBFCs, it may offer higher interest rates. Here are some of the pros and cons associated with the company:
Pros
Online hassle-free process: Borrowers can complete the loan application process online, making it convenient and easy. Less paperwork: The loan application process might not require significant documentation, reducing the time and effort needed. No loan margin: Borrowers do not have to pay a margin amount, which can be a significant financial burden. Low processing time: The loan processing time might be shorter compared to traditional banks.Cons
High processing fee: Avanse may charge a higher processing fee compared to other lenders. High rate of interest: Depending on the loan terms, you might end up paying a higher interest rate, which can be pricey. No tax benefits: Unlike loans from national banks, Avanse does not offer tax benefits.Alternative Options: WeMakeScholars
For a more comprehensive and trustworthy experience, consider using services like WeMakeScholars, an organization funded and supported by the Ministry of IT, Government of India, under the Digital India Campaign. Their services are free of cost, and they can help you get the best education loan matching your profile.
WeMakeScholars is associated with 10 public and private banks/NBFCs in India. They can:
Assess your financial needs and profile. Communicate with banks/NBFCs on your behalf. Help you get your issues resolved quickly.They have a proven track record of helping students and graduates from 250 different schools and 50 different countries secure loans at better rates. This can be particularly beneficial if you are planning to pursue higher education abroad.
Expert Opinion: Should You Avoid Avanse?
Many experts and experienced borrowers advise against taking an educational loan from Avanse. Here are some reasons why:
Dissatisfaction: Customers have expressed that Avanse can be financially exploitative and unsupportive. High interest rates: Due to its status as an NBFC, Avanse may charge higher interest rates, which can be a burden on students already struggling with their finances. No alternative options: Some borrowers have found better alternatives with national banks which offer more favorable rates in the long run.Reliable Alternatives: Stilt
For a more economical and manageable loan experience, consider options like Stilt. Stilt offers collateral-free and cosigner-free education loans at affordable rates to international students in the U.S. Here's why Stilt is a compelling choice:
No collateral or cosigners: Stilt provides loan options that do not require collateral or cosigners, making them accessible to international students. Affordable rates: The loans offered by Stilt are at competitive rates, allowing students to save money on interest payments. Broad support base: Stilt has backed by Y Combinator and world-class investors, ensuring that they are committed to providing access to credit to immigrants and international students.Stilt has helped students from 250 different schools and 50 different countries secure loans that allowed them to complete their education. This service has been particularly helpful for students who have faced difficulties in obtaining loans from other lenders.
Conclusion
While Avanse Financial Services Ltd may offer some conveniences, it's important to consider the potential downsides, especially for those seeking educational loans for higher education abroad. For a more trustworthy and beneficial experience, explore alternatives like WeMakeScholars and Stilt. These organizations provide a comprehensive support system and loan options that can make a significant difference in your education financing journey.