Education is one of the biggest investments in a student’s life. Many Indian students dream of studying abroad or in top Indian universities but face financial hurdles. Education loans make this dream possible.
Among the popular loan providers, Avanse Financial Services and Tata Capital are two trusted names offering education loans for higher studies.
In this blog, we’ll compare Avanse vs Tata Capital Education Loan in detail — covering their loan limits, interest rates, eligibility, repayment, processing fees, and real-life examples to help you choose wisely.
🎓 Overview of Avanse and Tata Capital
About Avanse Financial Services
Avanse is a Non-Banking Financial Company (NBFC) that focuses on education financing. It provides loans for higher studies in India and abroad. Avanse offers flexible repayment options and covers 100% of the education cost in many cases.
Highlights of Avanse:
- Covers up to 100% of expenses (zero margin)
- Offers both secured and unsecured loans
- Faster loan processing
- Available for a wide range of courses and countries
About Tata Capital Education Loan
Tata Capital is part of the Tata Group, one of India’s most trusted business houses. It provides education loans for studies in India and abroad with transparent terms and a long repayment period.
Highlights of Tata Capital:
- Offers up to ₹2 crore loan with collateral
- Competitive interest rates
- Flexible repayment up to 13 years
- Backed by a reputed financial group
💰 Loan Amount Comparison: Avanse vs Tata Capital Education Loan
| Feature | Avanse | Tata Capital |
| Maximum Loan (With Collateral) | Up to ₹3 crore | Up to ₹2 crore |
| Maximum Loan (Without Collateral) | Up to ₹1.25 crore | Up to ₹85 lakhs |
| Minimum Loan | ₹1 lakh | ₹75,000 |
| Loan Coverage | Tuition fees, living expenses, travel, laptop, etc. | Tuition fees, hostel, books, travel, etc. |
Example:
If your total education cost for studying in the USA is ₹60 lakhs, both lenders can cover it.
- Avanse: Can finance the entire ₹60 lakhs with no margin.
- Tata Capital: May ask you to pay 15% (₹9 lakhs) as margin and provide ₹51 lakhs as a loan.
👉 Verdict: Avanse is better for 100% funding (zero margin) cases, especially for abroad education.
💸 Interest Rate Comparison
| Feature | Avanse | Tata Capital |
| Interest Rate (Approx.) | Starts from 10.50% p.a. | Starts from 11% p.a. |
| Type | Floating | Floating |
| Based On | Student profile, university ranking, co-applicant income | Credit score, collateral, university/course |
Example Calculation:
Let’s say you take a loan of ₹20 lakhs for 10 years.
- Avanse (10.5%)
- EMI ≈ ₹27,149/month
- Total repayment ≈ ₹32.57 lakhs
- EMI ≈ ₹27,149/month
- Tata Capital (11%)
- EMI ≈ ₹27,615/month
- Total repayment ≈ ₹33.14 lakhs
- EMI ≈ ₹27,615/month
💡 You save around ₹57,000 with Avanse due to a slightly lower interest rate.
👉 Verdict: Avanse offers a marginally lower starting rate, but the final rate depends on your financial profile.
🧾 Loan Margin Comparison
- Avanse: Usually 0% margin, meaning they can finance 100% of your expenses.
- Tata Capital: Has a margin requirement —
- 5% for Indian studies
- 15% for overseas studies
- 5% for Indian studies
Example:
If your total course cost is ₹40 lakhs for abroad study:
- Avanse: Finances ₹40 lakhs (no margin).
- Tata Capital: Finances ₹34 lakhs (you must arrange ₹6 lakhs).
👉 Verdict: Avanse wins with zero margin for most study-abroad applicants.
🕒 Repayment Period
| Feature | Avanse | Tata Capital |
| Moratorium (Grace Period) | Course duration + 1 year | Course duration + 1 year |
| Repayment Tenure | Up to 17 years | Up to 13 years |
| Prepayment Charges | Nil or minimal | Nil or minimal |
A longer tenure reduces EMI but increases total interest.
For example, for a ₹20 lakh loan at 10.5%:
- 10 years: EMI ₹27,149
- 15 years: EMI ₹22,109 (but higher total cost)
👉 Verdict: Avanse offers a longer repayment option, which is helpful for students starting their careers.
🧍♂️ Eligibility Criteria
| Criteria | Avanse | Tata Capital |
| Nationality | Indian | Indian |
| Age Limit | 18–35 years | 18–35 years |
| Co-applicant | Mandatory (parent/guardian) | Mandatory |
| Credit Score (CIBIL) | 650+ preferred | 700+ preferred |
| University/Course | Recognized by foreign/Indian authorities | Approved by RBI/AICTE/UGC |
👉 Both have similar eligibility, but Avanse is slightly more flexible for mid-ranked universities abroad.
📂 Documents Required
Common documents:
- KYC documents (Aadhar, PAN, etc.)
- Admission letter
- Fee structure and course details
- Academic records
- Income proof of co-applicant
- Collateral documents (if any)
Both lenders provide a dedicated relationship manager to assist during the documentation process.
🏦 Processing Fees and Other Charges
| Feature | Avanse | Tata Capital |
| Processing Fee | Around 1% + GST | 1% + GST |
| Prepayment Charges | Usually Nil | Nil |
| Late Payment Charges | 2% per month approx. | 2% per month approx. |
| Insurance (optional) | Offered | Offered |
📉 Collateral Requirement
| Type | Avanse | Tata Capital |
| Unsecured Loan | Up to ₹1.25 crore | Up to ₹85 lakhs |
| Secured Loan | Up to ₹3 crore | Up to ₹2 crore |
| Collateral Type | Property, FD, shares, etc. | Property, gold, FD, etc. |
| Collateral Value | ~1.1x to 1.25x of loan | ~1.25x of loan |
👉 Avanse offers slightly higher loan limits without collateral.
💼 Loan Coverage Details
Both Avanse and Tata Capital cover:
- Tuition fees
- Hostel/living expenses
- Books and stationery
- Laptop and equipment
- Travel and visa costs
- Exam and library fees
However, Avanse also covers pre-visa disbursement for specific countries, which is helpful for students applying abroad.
📊 Comparison Summary Table
| Category | Avanse | Tata Capital |
| Loan Amount | Up to ₹3 crore | Up to ₹2 crore |
| Interest Rate | From 10.5% | From 11% |
| Loan Margin | 0% (full funding) | 5%–15% |
| Repayment Tenure | Up to 17 years | Up to 13 years |
| Moratorium | Course + 1 year | Course + 1 year |
| Collateral-Free Limit | ₹1.25 crore | ₹85 lakhs |
| Processing Fee | ~1% | ~1% |
| Coverage | Tuition + living + travel | Tuition + living + travel |
| Approval Speed | Fast (NBFC) | Moderate |
| Flexibility | High | Moderate |
💡 Which Is Better for You?
Choose Avanse if:
- You need 100% funding (no margin money).
- You are studying abroad and need a large unsecured loan.
- You want longer repayment flexibility (up to 17 years).
- You prefer quick digital processing.
Choose Tata Capital if:
- You have collateral or good co-applicant support.
- You want a stable loan from a reputed financial brand.
- You’re studying in India or at a top-ranked university abroad.
🧮 Example: Cost Comparison
Let’s assume two students, Riya and Arjun, both take education loans for ₹30 lakhs for a 2-year course abroad.
| Detail | Riya (Avanse) | Arjun (Tata Capital) |
| Loan Amount | ₹30,00,000 | ₹30,00,000 |
| Interest Rate | 10.5% | 11% |
| Tenure | 10 years | 10 years |
| EMI | ₹40,724 | ₹41,423 |
| Total Repayment | ₹48.86 lakh | ₹49.70 lakh |
| Savings | — | ₹84,000 less with Avanse |
👉 Riya (Avanse) saves ₹84,000 over the loan term.
📈 Additional Benefits
Avanse
- 100% financing including travel and living.
- No prepayment penalty.
- Tie-ups with many universities for direct fee disbursal.
- Quick approval (within 3–5 working days).
Tata Capital
- Trusted Tata brand and wide reach.
- Transparent EMI structure.
- Easy top-up and refinancing options.
- Support for Indian and international institutions.
⚖️ Final Verdict: Avanse vs Tata Capital Education Loan
Both Avanse and Tata Capital are strong contenders in the education loan market. The right choice depends on your financial background, university, and collateral availability.
| If you want… | Choose |
| Full 100% funding without collateral | Avanse |
| Lower interest and longer tenure | Avanse |
| Reputed financial institution and stability | Tata Capital |
| Studying in India | Tata Capital |
| Studying abroad with flexible options | Avanse |
✨ Conclusion
Education loans have become the key to fulfilling dreams of global learning. Both Avanse and Tata Capital provide reliable support for students, but their offerings differ slightly.
If you need higher funding and flexibility, Avanse is a great choice.
If you prefer stability and a trusted brand, Tata Capital is dependable.
Before applying, always:
- Compare interest rates and total cost of borrowing.
- Check eligibility and repayment terms.
- Negotiate the processing fee if possible.
A small difference in rate or tenure can help you save thousands of rupees.
So, research carefully — and make your education loan work smartly for your future success.