Education loans have become the backbone for students aspiring to study in India and abroad. Two of the most popular lenders in this field are Auxilo Finserve and Tata Capital. Both offer flexible repayment options, competitive interest rates, and quick approval.
However, when it comes to choosing the best education loan, students often get confused. This detailed comparison will help you understand Auxilo vs Tata Capital education loan differences, including features, eligibility, interest rates, collateral requirements, and example-based calculations.
Introduction to the Lenders
Auxilo Finserve
Auxilo is a non-banking financial company (NBFC) that focuses primarily on education loans. It funds both Indian and overseas education, covering tuition, living, travel, and other study-related expenses. Auxilo is known for its customized approach, allowing flexibility in co-applicant income, repayment, and collateral.
Tata Capital
Tata Capital is part of the Tata Group, one of India’s most trusted financial institutions. It offers education loans for domestic and international studies under its Tata Capital Education Loan scheme. Its strength lies in simple documentation, competitive rates, and wide acceptance by top universities globally.
Quick Comparison: Auxilo vs Tata Capital Education Loan
| Feature | Auxilo Finserve | Tata Capital |
| Type of Lender | NBFC | NBFC (Tata Group) |
| Loan Amount | Up to ₹65 lakhs (India) / ₹1 crore (abroad) | Up to ₹75 lakhs (India) / ₹1 crore (abroad) |
| Interest Rate (2025) | 10.25% – 13.50% p.a. | 10.99% – 14.00% p.a. |
| Loan Tenure | Up to 15 years | Up to 15 years |
| Processing Time | 5–7 working days | 7–10 working days |
| Collateral Requirement | Optional (based on profile) | Optional (based on loan amount) |
| Moratorium Period | Course duration + 6 months | Course duration + 12 months |
| Prepayment Charges | 0% (after 6 months) | 0% (after 6 months) |
| Co-applicant Requirement | Yes, mandatory | Yes, mandatory |
| Coverage | Tuition, living, travel, laptop, insurance | Tuition, living, travel, exam fees, insurance |
| Loan Disbursement | Directly to institution | Directly to institution |
Interest Rate and EMI Calculation
Let’s understand the cost difference between Auxilo and Tata Capital through an example.
Example 1: Loan for Abroad Studies
- Loan Amount: ₹30,00,000
- Repayment Tenure: 10 years
- Moratorium Period: 1 year (no payment during study + 6 months grace)
Auxilo
- Interest Rate: 10.50% p.a.
- EMI after moratorium: ₹40,620/month (approx)
- Total Interest Payable: ₹18,74,400
- Total Repayment: ₹48,74,400
Tata Capital
- Interest Rate: 11.25% p.a.
- EMI after moratorium: ₹42,350/month (approx)
- Total Interest Payable: ₹20,82,000
- Total Repayment: ₹50,82,000
🟢 Result: Auxilo offers a slightly lower interest cost (around ₹2.1 lakhs savings) for the same tenure and loan amount.
Example 2: Loan for Indian Education
- Loan Amount: ₹10,00,000
- Repayment Tenure: 7 years
- Interest Rate (Auxilo): 11.25%
- Interest Rate (Tata Capital): 12.00%
| Lender | EMI | Total Interest | Total Repayment |
| Auxilo | ₹17,200 | ₹4,44,000 | ₹14,44,000 |
| Tata Capital | ₹17,700 | ₹4,88,800 | ₹14,88,800 |
🟢 Result: For domestic education, both lenders perform closely, but Auxilo remains slightly more cost-effective.
Collateral and Security Options
| Type of Loan | Auxilo | Tata Capital |
| Secured (with collateral) | Property, FD, LIC, government bonds | Property, FD, mutual funds |
| Unsecured (without collateral) | Up to ₹40 lakhs | Up to ₹35–40 lakhs |
| Collateral Benefits | Lower interest rate and higher loan amount | Lower rate and faster approval for good profiles |
👉 Students with strong academic backgrounds and a financially stable co-applicant can easily get unsecured loans from both institutions.
Eligibility Criteria
Auxilo
- Indian citizen aged 18–35 years
- Confirmed admission in a recognized Indian or international institution
- Co-applicant (parent/guardian) with stable income
- Decent academic record (60% or above in last degree)
Tata Capital
- Indian citizen aged 16–35 years
- Admission letter from approved college/university
- Co-borrower with a regular income
- Good CIBIL score (700+) preferred
Courses and Institutions Covered
Both lenders cover a wide range of programs.
| Study Type | Auxilo | Tata Capital |
| Undergraduate | ✅ India & Abroad | ✅ India & Abroad |
| Postgraduate | ✅ All major fields | ✅ All major fields |
| Professional Courses | ✅ MBA, MS, MBBS, CA, Engineering | ✅ MBA, Engineering, MBBS, Law |
| Short-term/Skill Courses | ✅ (case-to-case basis) | ✅ (case-to-case basis) |
Auxilo is slightly more flexible in funding non-traditional or emerging programs such as digital marketing, AI, and data science.
Processing and Documentation
Auxilo Documents
- Admission letter
- KYC documents of student and co-applicant
- Academic records
- Income proof (ITR, salary slips, bank statements)
- Collateral documents (if applicable)
Tata Capital Documents
- Admission or offer letter
- Student & co-applicant KYC
- Mark sheets and certificates
- Income proof
- Property or security documents (if applicable)
🟢 Both lenders require similar paperwork, but Auxilo offers digital uploading, reducing approval time.
Moratorium and Repayment Flexibility
- Auxilo: Offers a moratorium for course duration + 6 months. Students can choose partial interest payments during the study period to reduce EMI burden later.
- Tata Capital: Offers a longer grace period (course duration + 12 months) but expects full EMI payment after that.
Example:
If you borrow ₹20 lakh at 10.75% for a 2-year course abroad, paying ₹5,000/month as simple interest during the study period can save you up to ₹1.2 lakh overall.
Unique Features and Benefits
Auxilo Finserve
✅ Personalized interest rates based on student’s potential
✅ Option to add multiple co-borrowers
✅ Up to 100% finance including living costs
✅ No hidden charges or prepayment penalties
✅ Easy top-up if expenses increase abroad
Tata Capital
✅ Backed by trusted Tata brand
✅ Flexible repayment options
✅ Quick sanction for top global universities
✅ Online tracking and customer portal
✅ Special offers for Tata Group employees
Disbursement and Currency Conversion Example
Let’s say you’ve taken a $30,000 (₹25,00,000) education loan from Auxilo to study in the USA.
- Exchange Rate: ₹83 = $1
- Loan Sanctioned: ₹25,00,000
- University Fees (in USD): $30,000
- Auxilo directly pays $30,000 to the university via SWIFT transfer.
- Any balance amount (for living) is transferred to your account in INR.
Tata Capital follows a similar process, but they may charge an additional foreign transaction fee (0.5%–1%), depending on the channel.
Customer Support and Digital Experience
Both lenders have made strong improvements in online loan processing.
| Parameter | Auxilo | Tata Capital |
| Online Application | ✅ Yes | ✅ Yes |
| Pre-approval Time | 24–48 hours | 48–72 hours |
| Loan Tracker App | ✅ Available | ✅ Available |
| Customer Service | 24×7 helpline & email | 9 AM – 8 PM weekdays |
🟢 Auxilo wins slightly for faster pre-approval and better digital interface.
Pros and Cons
Auxilo Finserve
Pros:
- Lower interest for strong profiles
- Covers new-age courses
- Quick digital approval
Cons:
- Smaller physical presence
- Slightly higher processing fee (~1.5%)
Tata Capital
Pros:
- Trusted brand name
- Longer moratorium (12 months)
- Simple and reliable service
Cons:
- Slightly higher interest rate
- Limited flexibility for emerging programs
Which Is Better? – Final Verdict
| Category | Best Lender |
| Interest Rate | Auxilo |
| Moratorium Period | Tata Capital |
| Digital Process | Auxilo |
| Brand Trust | Tata Capital |
| Unsecured Loan Limit | Auxilo |
| Overall Ease | Auxilo (for 2025) |
Verdict Summary
If you’re a student with a strong academic background, Auxilo is an excellent choice due to its personalized interest rates and quick disbursement.
However, if you prefer brand reliability and a longer grace period, Tata Capital is a solid option.
Conclusion
Both Auxilo and Tata Capital have made education financing easier for Indian students.
- Auxilo stands out for flexibility, tech-friendly application, and support for modern courses.
- Tata Capital, on the other hand, offers reliability, simple repayment, and trust built over decades.
Ultimately, your choice should depend on your loan amount, study destination, financial co-applicant’s profile, and repayment comfort.
Always compare total interest cost, moratorium benefits, and eligibility before finalizing.