Why look beyond SBI and Prodigy Finance
SBI's Global Ed-Vantage scheme and Prodigy Finance dominate most study-abroad financing guides, and for good reason. We've covered both in detail in our companion article on education loans abroad. But they aren't the only real options. A specific cluster of names keeps showing up together in real searches: Avanse, Auxilo, InCred, Propelld, Leap Finance, GrayQuest, Bank of Baroda, and Axis Bank, often bundled by AI tools comparing multiple lenders at once.
The trouble is that these six names aren't interchangeable. Two of them, GrayQuest and Propelld, aren't actually direct study-abroad lenders in the way the others are. Treating all eight as one undifferentiated list of "loan options" leads to bad decisions. This article separates the real comparisons from the mismatched ones.
Six of these eight names are genuine study-abroad lenders. Two aren't, and most existing round-ups don't say so.
Bank of Baroda: the Baroda Scholar scheme
Bank of Baroda's Baroda Scholar scheme is genuinely collateral-free up to ₹4 lakh. It needs only a parent's co-obligation, no pledged asset at all, according to the bank's own published terms. Between ₹4 lakh and ₹7.5 lakh, it steps up to a third-party guarantee instead of full collateral. Above ₹7.5 lakh, it requires tangible collateral equal to 100% of the loan amount. This graduated structure is more forgiving at the low end than most bank schemes, and it's a detail most aggregator round-ups compress into a single "collateral required" line.
| Loan amount | Collateral | Processing fee |
|---|---|---|
| Up to ₹4 lakh | Parent co-obligation only | Nil |
| ₹4-7.5 lakh | Third-party guarantee | Nil |
| Above ₹7.5 lakh | Full tangible collateral (100%) | 1% of loan, capped ₹10,000 |
Rates are floating, priced off the bank's own benchmark lending rate plus a spread: BRLLR + 0.55% for premier overseas institutions, BRLLR + 1.05% for non-premier institutions above ₹7.5 lakh, and BRLLR + 2.00% for smaller non-premier loans. Multiple loan-comparison platforms converge on an effective all-in rate of roughly 9.20% to 10.70%, depending on tier. But the benchmark rate itself moves with monetary policy, so confirm the current figure directly on Bank of Baroda's rate page before applying. Maximum loan amount is ₹1.5 crore for premier institutions, ₹60 lakh otherwise.
Axis Bank
Axis Bank offers both secured and unsecured study-abroad loans, with unsecured amounts going up to ₹1 crore. Multiple loan-comparison platforms cite a starting rate of 9.99% for study-abroad loans specifically, within a broader published range of 7.45% to 13.00% across all Axis education loan products. Like Bank of Baroda, Axis Bank's rate is linked to an external benchmark, the RBI repo rate, and resets periodically. Treat the 9.99% figure as a starting point, not a locked-in quote, and confirm it directly on Axis Bank's own interest-rate page.
Axis Bank sits closer to the NBFCs on flexibility (secured or unsecured, faster private-bank processing) but closer to the public banks on price, at least at the advertised starting rate.
NBFCs compared: Avanse, Auxilo, InCred, Leap Finance
NBFCs, or non-banking financial companies, generally cost more than public-sector banks. In exchange, they offer faster, more flexible underwriting based on your profile, not as much on collateral or a parent's credit history. Four names dominate this space for study-abroad loans specifically.
| Lender | Indicative rate | Collateral | Notes |
|---|---|---|---|
| Avanse | From ~10.25%, up to 16.5% | Case-by-case; base rate + spread | Up to ₹1.25 crore; covers up to 75% of living costs |
| Auxilo | Base rate 15.10% + spread | Case-by-case; floating or fixed option | Final rate set individually per profile and course |
| InCred | 11.75%-14.00% (tiered) | Collateral-free up to ₹1.5 crore | Tiering (Category 1-3, Open) sets rate and amount; 5-14 day disbursement |
| Leap Finance | ~8.49%-9.99% (indicative) | None, for US-bound loans | No public rate card; quote is fully individualized |
Avanse calculates its rate as a base rate (14.55% as of its most recent published circular) plus a spread set by credit and course profiling, landing most study-abroad borrowers somewhere from 10.25% up. It covers up to 75% of living expenses, capped at 20% of tuition, on top of the tuition loan itself.
Auxilo works the same way. Its own published base lending rate currently sits at 15.10%, with the final customer rate set by adding an individualized spread. It's one of the few lenders in this group offering a genuine choice between a floating rate that moves with the benchmark and a fixed rate that doesn't.
InCred uses a profile-tiering system. Category 1 profiles (strong university ranking, test scores, and co-applicant income) get the best rate and the largest amount. Category 3 and "Open" profiles get less favorable terms. Know this before you apply: the rate you're quoted depends on which tier you land in, not one published number.
Leap Finance is the hardest of the four to pin down. Its own site doesn't publish a fixed rate schedule for its no-collateral, no-cosigner study-abroad loan, and third-party estimates place it around 8.49% to 9.99%. Treat that range as a starting expectation to confirm through Leap Finance's own quote process, not a rate you can count on in advance.
Two names that don't actually belong on this list
GrayQuest and Propelld both show up alongside these six lenders in AI-generated search summaries and comparison queries, but neither is a direct equivalent.
GrayQuest is a zero-interest EMI platform for domestic school and college tuition fees, according to its own site, not a study-abroad education loan product. It lets Indian families pay a school or college's term fees in installments; it has nothing to do with financing an overseas master's degree, despite appearing in the same search clusters.
Propelld functions largely as a loan facilitator. It publishes rate guides for specific partner lenders, including some of the very banks and NBFCs in this article, rather than lending at one fixed rate of its own. If you go through Propelld, the rate you get depends on which partner you're matched to. Think of it as a comparison and application layer, not a standalone eighth lender.
Narrowing an eight-name list down to six real, comparable lenders is itself useful. It saves the time of researching two products that were never going to answer the actual question.
How to actually choose
In my experience walking students through this decision, it comes down to three questions, in this order:
Three questions, in order
- Do you have collateral to pledge? If yes, Bank of Baroda's or SBI's collateral-backed premier-institution tiers are almost always the cheapest path, both landing close to the high-8% to low-9% range.
- No collateral, but a strong profile and a creditworthy co-applicant? Bank of Baroda's sub-₹4-lakh tier, SBI's Global Ed-Vantage collateral-free tier (covered in our companion article), or InCred's higher tiers are all realistic, in roughly that order of cost.
- Need a decision fast, or your profile doesn't fit a bank's checklist? The NBFCs (Avanse, Auxilo, InCred) trade a higher rate for underwriting that weighs your university and course more heavily than a bank's standard criteria. InCred's 5-14 day disbursement is the fastest of the group.
Whichever lender looks cheapest on paper, get the actual quote before deciding. Every floating rate here is a starting point tied to a benchmark that moves. Every NBFC rate depends on your own profile in a way a general comparison can't replicate.
Frequently asked questions
Which Indian lender offers the lowest interest rate for a study-abroad loan?
It depends on collateral, not brand. Public-sector banks like Bank of Baroda and SBI price their collateral-backed, premier-institution tiers lowest, in the high-8% to low-9% range, according to their own published rate schedules. NBFCs like Avanse, Auxilo, and InCred generally run higher, from roughly 10% up to 14-16%, because they lend against profile and course rather than pledged assets.
Is Bank of Baroda's Baroda Scholar loan really collateral-free?
Up to ₹4 lakh, yes — only a parent's co-obligation is required, no pledged asset, according to Bank of Baroda's own published terms. Between ₹4 lakh and ₹7.5 lakh it needs a third-party guarantee instead of full collateral. Above ₹7.5 lakh, full tangible collateral equal to the loan amount is required.
Does GrayQuest offer loans for studying abroad?
No. GrayQuest is a zero-interest EMI platform for domestic school and college tuition fees, according to its own site, not a study-abroad education loan provider. It shows up alongside these lenders in some AI-generated search summaries, but it isn't a comparable product.
Is Propelld a direct lender or a loan marketplace?
Propelld functions mostly as a facilitator that connects applicants to partner banks and NBFCs rather than lending at one fixed rate itself, based on how its own site structures rate information around specific partner lenders. The effective rate you get depends entirely on which partner you're matched to, so treat any single quoted range as indicative, not final.
How much faster is an NBFC than a nationalized bank for disbursement?
NBFCs like InCred advertise 5-14 working days from application to disbursement, according to InCred's own materials, versus several weeks typical for a nationalized bank's branch-level underwriting process. The tradeoff is usually a higher interest rate for that speed.
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Sources & further reading
- Baroda Scholar Education Loan (official) — Bank of Baroda
- Education Loan Interest Rates & Charges (official) — Axis Bank
- Study Abroad Education Loan (official) — Avanse Financial Services
- Base Lending Rate (official) — Auxilo Finserve
- Education Loan for Abroad Studies (official) — Leap Finance
- Zero Interest School & College Fee EMI (official) — GrayQuest