Education loans are one of the most helpful financial tools for students who wish to study in India or abroad. In India, two well-known private lenders—Avanse Financial Services and Poonawalla Fincorp—offer flexible and quick education loan options.
If you’re confused between Avanse vs Poonawalla Fincorp Education Loan, this detailed blog will help you compare both based on loan amount, interest rate, eligibility, repayment, processing fees, and special features with simple examples and calculations.
Why Compare Avanse and Poonawalla?
Avanse and Poonawalla Fincorp are both trusted NBFCs (Non-Banking Financial Companies) that provide education loans to students.
- Avanse is known for customized study-abroad loan solutions, especially for higher education in the USA, UK, Canada, and Australia.
- Poonawalla Fincorp is known for offering zero-collateral loans, quick processing, and lower documentation for both Indian and international students.
Both lenders have unique advantages. Choosing the right one depends on your course, country, and financial background. Let’s understand both in detail.
Overview: Avanse vs Poonawalla Fincorp Education Loan
| Features | Avanse Financial Services | Poonawalla Fincorp |
| Loan Type | Study in India & Abroad | Study in India & Abroad |
| Loan Amount (Unsecured) | Up to ₹75 Lakhs | Up to ₹1 Crore |
| Loan Amount (Secured) | Up to ₹1.5 Crore | Up to ₹3 Crore |
| Interest Rate | 10.50% – 13.75% p.a. | 11.25% – 14% p.a. |
| Processing Fees | 1% – 1.5% + GST | Up to 2% + GST |
| Moratorium Period | Course period + 1 year | Course period + 1 year |
| Tenure | Up to 15 years | Up to 15 years |
| Collateral Required | Optional | Optional |
| Insurance | Mandatory loan-cover insurance | Optional |
| Co-applicant Income | ₹20,000–₹35,000/month | ₹15,000–₹25,000/month |
Interest Rate Comparison
Interest rate plays the most important role in deciding your total loan cost.
- Avanse offers floating rates from 10.50% to 13.75%.
- Poonawalla Fincorp offers rates from 11.25% onwards.
Let’s take a small example:
Example: Interest Calculation
Suppose you take a loan of ₹20,00,000 for 10 years.
Case 1: Avanse at 11% p.a.
Monthly EMI = ₹27,549 (approx.)
Total Interest = ₹13,05,880
Total Payment = ₹33,05,880
Case 2: Poonawalla Fincorp at 12% p.a.
Monthly EMI = ₹28,670 (approx.)
Total Interest = ₹14,40,400
Total Payment = ₹34,40,400
✅ Result: Avanse helps save around ₹1.35 lakh in total payment if the rate is lower by 1%.
Thus, even a small difference in rate matters a lot.
Loan Amount and Collateral Requirement
Both companies offer secured (with collateral) and unsecured (without collateral) loans.
- Avanse:
- Up to ₹75 Lakhs (unsecured)
- Up to ₹1.5 Crore (secured)
- Poonawalla Fincorp:
- Up to ₹1 Crore (unsecured)
- Up to ₹3 Crore (secured)
If you are planning to study in a top global university (like Harvard, Oxford, or Melbourne), Poonawalla Fincorp can offer a higher loan amount if you pledge collateral.
But if you don’t want to mortgage property, Avanse is slightly easier to get approved for unsecured loans, especially for study abroad.
Processing Fees and Other Charges
| Fee Type | Avanse | Poonawalla Fincorp |
| Processing Fee | 1%–1.5% + GST | Up to 2% + GST |
| Prepayment Charges | 0–4% depending on time | 0–4% depending on time |
| Late Payment Penalty | As per terms | As per terms |
Let’s calculate the processing fee example:
If your loan is ₹20,00,000 –
- Avanse may charge 1.25% = ₹25,000 + GST (₹29,500 approx).
- Poonawalla may charge 2% = ₹40,000 + GST (₹47,200 approx).
✅ Result: Avanse has a lower initial cost.
Eligibility and Co-applicant Requirements
Both lenders require a co-applicant (like a parent or guardian) with a stable income source.
Avanse
- Co-applicant income: ₹20,000–₹35,000/month.
- Accepts applicants with academic backlogs.
- Course and institution should be recognized globally.
Poonawalla Fincorp
- Co-applicant income: ₹15,000 (Tier-2 city), ₹25,000 (Metro).
- Prefers a clean academic record.
- Institution must be approved by recognized bodies.
✅ Tip: If you have minor backlogs or lower grades, Avanse may be a better choice.
If you have a strong academic record and collateral, Poonawalla Fincorp may offer better terms.
Repayment and Moratorium Period
Both Avanse and Poonawalla Fincorp offer a moratorium period = Course Duration + 1 Year.
That means you don’t need to start paying full EMIs during your course. You can pay only simple interest or partial interest during this time.
Example
If your course duration is 2 years, you can start full EMI payments after 3 years (2 years course + 1 year moratorium).
Repayment Tenure and EMI Flexibility
- Avanse: Up to 15 years tenure.
- Poonawalla Fincorp: Up to 15 years tenure.
Both provide flexible repayment options like step-up EMI, where payments start small and gradually increase as your income grows after employment.
Unique Features
| Feature | Avanse | Poonawalla Fincorp |
| Insurance | Compulsory loan-cover insurance | Optional |
| Pre-visa Disbursement | Available | Available |
| Quick Approval | 2–5 working days | 2–5 working days |
| Online Application | Yes | Yes |
| No Hidden Charges | Transparent pricing | Transparent pricing |
Additional Benefits
Avanse
- Covers living expenses, travel, laptop, exam fees, visa fees, etc.
- Offers customized financing based on your course and country.
- Ties up with 3000+ universities worldwide.
Poonawalla Fincorp
- Offers zero collateral loan options for top institutes.
- 100% digital process.
- No prepayment penalty after 6 months.
- Provides special discounts for meritorious students.
Example: Real-Life Comparison Case
Case Study:
Riya wants to study for an MBA in the UK with a total cost of ₹40 Lakhs. She can pledge property worth ₹50 Lakhs.
| Criteria | Avanse | Poonawalla Fincorp |
| Secured Loan Offered | ₹40 Lakhs | ₹40 Lakhs |
| Interest Rate | 11% | 11.25% |
| Tenure | 10 years | 10 years |
| EMI | ₹55,194 | ₹56,049 |
| Total Interest | ₹26,23,280 | ₹26,82,880 |
| Processing Fee | ₹50,000 | ₹80,000 |
✅ Result:
Both provide similar benefits, but Avanse offers slightly lower EMI and processing cost.
However, Poonawalla Fincorp may provide faster processing and simpler repayment terms.
Pros and Cons
Avanse Pros
- Lower processing fees.
- Accepts academic backlogs.
- Strong global presence (50+ countries).
- Customizable loan packages.
Avanse Cons
- Mandatory insurance increases total cost.
- Slightly higher rates for unsecured loans.
Poonawalla Fincorp Pros
- No collateral loans up to ₹1 Crore.
- Digital process with minimal paperwork.
- No prepayment charges (after 6 months).
- Long tenure flexibility (up to 15 years).
Poonawalla Fincorp Cons
- Higher processing fees.
- May not approve students with backlogs.
- Limited to recognized institutions.
When to Choose Which?
| Your Situation | Best Option |
| You need a loan quickly with flexible eligibility | Avanse |
| You have strong academics & good co-applicant income | Poonawalla Fincorp |
| You want a large secured loan | Poonawalla Fincorp |
| You want a smaller unsecured loan for abroad | Avanse |
| You want lower processing cost | Avanse |
| You prefer full online process | Poonawalla Fincorp |
Tips for Students
- Compare APR (Annual Percentage Rate), not just interest.
- Negotiate interest rates if you have strong co-applicant income.
- Apply at least 2 months before visa to avoid delays.
- Check hidden costs like insurance or forex charges.
- Use EMI calculators on official lender websites.
Final Verdict: Avanse vs Poonawalla Fincorp
Both Avanse and Poonawalla Fincorp are excellent choices for education loans.
- Choose Avanse if you want flexibility, lower upfront cost, and quick approval even with average academics.
- Choose Poonawalla Fincorp if you have strong financial and academic profile, want higher loan amount, and prefer digital convenience.
Conclusion
Education is an investment that shapes your future, and choosing the right lender makes that investment easier.
Both Avanse and Poonawalla Fincorp provide modern, student-friendly education loans that reduce the financial burden of studying in India or abroad.
Before applying, always compare loan amount, rate, tenure, and hidden costs using examples like those above. The best loan is the one that fits your goals, your profile, and your repayment capacity.