Auxilo Education Loan Interest Rate 2026

Auxilo education loan interest rates can start as low as 10% for applicants with a strong profile. The interest rates for a secured loan typically range from 10% to 11%. Whereas for unsecured loans, interest rates are decided based on destination and course. For the USA, rates start at 10.25% (going up to 11.50%), and for non-USA countries, interest starts at 11% and goes up from there. Students opting for STEM or Management programs get better benefits, with loans starting from as low as 10.25% for top-ranked USA universities and 11% for other courses in the USA. For studying STEM and Management outside the USA, rates start from 10.9% at top universities and 11% for other courses apart from STEM or Management. NBFCs usually do not provide education loans for undergraduate or MBBS programs.

Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the bank’s discretion.

Benchmark Rate + Spread Rate

1. Benchmark Rate - The benchmark rate is the minimum interest rate used by banks to calculate your education loan. This is also known as the base rate; it can be set by the RBI or the banks themselves. There are two main types of benchmark rates that NBFCs follow. They are known as EBR / EBLR and proprietary rates. 

• • EBR / EBLR - This is directly linked to the RBI repo rate and reflects monetary policy changes. 
  • Proprietary Rates - These rates are determined by the NBFCs and private lenders. They are usually higher than the benchmark rate of public banks because NBFCs fund riskier or non-collateralized loans. 

2. Spread Rate - It is the additional percentage a bank adds on top of the benchmark rate to ensure profits for the bank. The spread rate covers the operational expenses, capital adjustment costs, and profits for the bank. It is usually 2-3% that is added to the benchmark percentage. While the benchmark rate is usually fixed, the spread rate varies from bank to bank and borrower to borrower. 

Auxilo has its own benchmark known as the Auxilo Benchmark Lending Rate (ABLR). Auxilo Board / ALCO (Asset-Liability Committee) determines ABLR. Even after having its own benchmark, NBFCs have to follow RBI guidelines and lay out internal principles for determining interest rates and disclose their methodology publicly.

Floating Rate and Interest Calculation: What It Means for You

Auxilo's interest rate is floating; it means it fluctuates depending on the internal benchmark rate that is decided by ABLR. If ABLR revises its internal base rate, then your final interest rate also changes accordingly.

Apart from the benchmark rate and spread rate, banks and NBFCs can also levy penal charges; these are penalty charges added to your loan amount. These charges are only applied when there is non-compliance with the loan terms, and prior information is communicated to the borrower before applying them. 

What Your EMI Looks Like

Let's assume you take a loan of ₹40 lakh for a 2-year master's program, with a 2-year moratorium and 10 years of repayment time. In this period, let’s assume you pay 50% of the accrued interest every month; the unpaid half gets added to your principal. Now let's understand the difference you will have to go through if you approach Auxilo directly vs via WeMakeScholars. 

  If you go directly through Auxilo - 11.00%

• Monthly interest at the start: ~₹36,667, of which you pay ~₹18,333

• Over 24 months, roughly ₹4.40 lakh is paid out of pocket; another ₹4.40 lakh is capitalized into the loan

• Principal at the start of repayment: ~₹44.40 lakh

• Calculated EMI: ~₹61,100/month

• Total interest over the repayment period: ~₹28.9 lakh

If you go via WeMakeScholars - Starting from 10.25%

• Monthly interest at the start: ~₹34,167, of which you pay ~₹17,083

• Over 24 months, roughly ₹4.10 lakh is paid out of pocket; another ₹4.10 lakh is capitalized into the loan

• Principal at the start of repayment: ~₹44.10 lakh

• Calculated EMI: ~₹59,000/month

• Total interest over the repayment period: ~₹26.7 lakh

The difference: ~₹2,100/month on the EMI, and roughly ₹2.2 lakh less interest over the full tenure just from a 0.75 percentage point difference in rate.

Disclaimer: Figures shown are an illustrative best-case scenario based on the lowest sanctioned rates observed. All interest rates are floating and subject to revision.

Return on investment is one of the primary concerns for banks and NBFCs when providing education loans. Two of the most influential factors that determine this are the country you choose to study in and the course you choose to pursue.

It is a general assumption that countries with better economic opportunities and courses with higher employment demand are more likely to be preferred when taking an education loan. The USA is one of the most popular study-abroad destinations, due to its booming economy, strong infrastructure, and wide range of career prospects.

Apart from the country of choice, the next most important factor is the course you opt to study. STEM and Management programs are often associated with some of the highest-paying jobs, making these courses a relatively attractive choice for banks and NBFCs when evaluating education loan applications.

You can find the interest rates for different countries and courses provided by Auxilo below.

Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the bank’s discretion.

Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the bank’s discretion. 

For a secured loan, you are required to pledge an asset acceptable to the bank. For this, the value is determined, and the maximum loan amount is decided. As collateral-based loans are backed by an asset, the risk of the lender is reduced. Due to this, secured loans have lower interest rates. An unsecured loan is given only based on the co-applicant’s income and the student’s profile; the associated risk is higher. Hence, the interest rates for unsecured loans are higher compared to secured loans.

Auxilo interest rates are determined by the benchmark rate and spread rate. The spread rate is determined by various factors, and one of them is the student’s profile. Here are some of the factors that determine the interest rate at Auxilo

1. University and Program - Prestigious and highly ranked universities are associated with better career prospects post-graduation. Popular courses like STEM and Management have been proven to provide better return on investment due to their high demand and higher pay. This makes these two factors a strong consideration for deciding your interest rate.  

2. Country - Countries with better economic opportunities, job security, and higher employment rates tend to get higher preference over developing countries. Hence, countries like the USA, the UK, and Canada become a preferred choice for studying abroad and for getting lower interest rates. 

3. Loan Type - Collateral-based loans have a lower rate of interest as the risk associated with the loan is reduced significantly because of the collateral. Hence, most banks and NBFCs offer secured loans at a much lower rate of interest, with secured loans at Auxilo starting from 10%.

4. Co-applicant - A strong co-applicant profile is very important for an education loan process. A good income and a great credit score act as trustworthy factors for banks when providing a loan. A good co-applicant can influence your interest rates greatly.

The interest rate that you receive from the NBFC is calculated by considering multiple metrics and variables. Once you get the final interest rate in the sanction letter, it is difficult to get it changed, but there are steps you can take during your application process to ensure that you get a lower rate. The following steps can help you optimise your profile and increase the probability of a lower interest rate:

1. Apply under ‘Beat the Deal’ - If you already have a sanction letter from another bank or NBFC with an interest rate of more than 10%, then Auxilo can beat the deal by offering an education loan starting at 10% for strong profiles. 

2. Apply through WeMakeScholars - Auxilo is a partnered NBFC of WeMakeScholars, so the interest rates offered by WeMakeScholars for Auxilo are comparatively lower. This is compared to the interest rates offered to students who approach Auxilo directly. Apart from the lower interest rates, students also get many other benefits when they apply through WeMakeScholars, such as discounted processing fees, post-sanction support, and guidance throughout the loan process. 

3. Special scheme - Auxilo provides a special benefit for children of Indian Defence Forces by offering them zero processing fees on their education loan. This benefit is intended to encourage more applicants to aspire to study abroad for their higher education.

Auxilo education loan interest rates differ based on collateral, university ranking, and course of choice. Countries such as the USA and courses like STEM and Management tend to receive more favourable interest rates. This is mainly because of their higher demand and better career scope.  

The Auxilo interest rate is floating and is determined by ABLR (Auxilo Benchmark Lending Rate), which is decided by the Auxilo Board. On this benchmark rate, a spread is added, which can be personalized based on the student's profile. This determines your final rate of interest from Auxilo. This article summarises every aspect of Auxilo education loan interest rate for you. So pick the right option for you or get in touch with WeMakeScholars for a hassle-free loan sanction.