Avanse vs Prodigy Finance: Which is the Best Education Loan for Studyi

Choosing the Best Education Loan: Avanse vs. Prodigy Finance

Studying abroad is an exciting and life-changing experience, but finding the right education loan is just as important. With rising tuition costs, securing the right financial support can make all the difference in managing expenses without unnecessary stress. Two major education loan providers—Avanse Financial Services and Prodigy Finance—offer competitive loan options. But which one is the better choice for international students?

If you’re looking for a loan that requires no collateral, no co-signer, and offers global repayment flexibility, this guide will help you compare Avanse and Prodigy Finance. We’ll break down their differences in loan amounts, interest rates, repayment terms, and more to help you make an informed decision.

Avanse vs. Prodigy Finance: A Quick Comparison

Avanse provides loans ranging from INR 10 lakhs to INR 75 lakhs, whereas Prodigy Finance covers up to 100% of tuition and living expenses. Interest rates with Avanse vary from 10% to 16.5%, while Prodigy Finance offers lower rates between 8.74% and 12%. One key difference is that Avanse loans are in INR, which means students may face currency exchange losses. In contrast, Prodigy Finance disburses loans in USD, GBP, or EUR, avoiding exchange rate risks.

Avanse requires collateral and a co-signer for larger loans, making the process more complex. Prodigy Finance eliminates this requirement, making it more accessible for students without financial backing. Repayment terms also differ, with Avanse offering a maximum tenure of 10 years, whereas Prodigy Finance provides more flexibility with repayment periods ranging from 7 to 20 years. Additionally, Prodigy Finance allows early repayments without penalties, while Avanse may charge prepayment fees.

Loan processing speed is another crucial factor. Avanse typically takes 2 to 6 weeks for approval, whereas Prodigy Finance processes applications in just 2 to 7 days. Indian students taking loans from Avanse can benefit from tax deductions under Section 80E, while Prodigy Finance loans also qualify for similar deductions.

Why Prodigy Finance is the Better Choice

 No Collateral or Co-Signer Needed – Unlike Avanse, Prodigy Finance doesn’t require collateral or a co-signer, making it more accessible for students without financial backing.
 Lower Interest Rates & No Hidden Fees – With interest rates starting at 8.74%, Prodigy Finance is significantly cheaper than Avanse, which goes up to 16.5%. Plus, there are no processing or prepayment charges.
 Loan in USD, GBP, or EUR – Avanse provides loans in INR, leading to exchange rate losses. Prodigy Finance disburses loans in global currencies, making it easier for tuition payments.
 Flexible Repayment Plans – With repayment tenures of up to 20 years, Prodigy Finance allows students to manage finances more effectively post-graduation.
 Faster Loan Disbursal (2-7 Days) – While Avanse takes weeks to process loans, Prodigy Finance disburses funds in as little as 2-7 days.
 Builds Global Credit – Since Prodigy Finance reports to international credit bureaus, students can establish a strong global credit history.

Why Avanse Falls Short for International Students

 Requires Collateral and Co-Signer – Unlike Prodigy Finance, Avanse requires both, making it harder for students without financial support.
 Loans in INR Only (Exchange Rate Losses) – Since Avanse provides loans in INR, students must convert the funds to USD/EUR, incurring losses.
 Higher Interest Rates – Avanse’s rates can go up to 16.5%, making it an expensive option.
 Longer Processing Time – Avanse takes weeks to process loans, unlike Prodigy Finance’s quick 2-7 day approval.
 Shorter Repayment Term – Avanse loans have a maximum tenure of 10 years, leading to higher EMIs.
 Prepayment Charges & Hidden Fees – Processing fees and potential prepayment penalties make Avanse loans costlier.

Final Verdict: Prodigy Finance is the Smarter Choice

For international students, Prodigy Finance stands out as the better option because it offers:
 Lower Interest Rates
No Collateral or Co-Signer Required
 Flexible Repayment (Up to 20 Years)
 Zero Processing Fees

Choosing the right education loan is a crucial step in your study abroad journey. With Prodigy Finance, you get a more transparent, flexible, and affordable solution. Do your research, compare your options, and make an informed decision that supports your education and financial future. Start your Prodigy Finance application today and secure a hassle-free education loan!

FAQs: Your Questions Answered

1. Which lender offers lower interest rates?
Prodigy Finance provides lower interest rates (8.74%-12%) compared to Avanse, which can go as high as 16.5%.

2. Does Avanse require a co-signer or collateral?
Yes, Avanse requires both for higher loan amounts, while Prodigy Finance does not.

3. Can Prodigy Finance cover all my study abroad expenses?
Yes, Prodigy Finance can cover 100% of tuition and living costs.

4. How long does loan approval take?
Prodigy Finance approves loans within 2-7 days, while Avanse takes 2-6 weeks.

5. Which lender offers better repayment flexibility?
Prodigy Finance allows up to 20 years for repayment, while Avanse only offers up to 10 years.