For many international students aspiring to study abroad, securing an education loan becomes an essential step in their academic journey. Auxilo is a leading education loan provider in India that offers customised financial solutions for students. However, understanding the Auxilo education loan repayment process and its benefits is important for a smooth and stress-free experience. In this blog, we’ll understand the Auxilo education loan repayment process, modes of payment, and the benefits of timely repayment for Auxilo education loans.
Table of contents
Understanding Auxilo Education Loan Repayment
Auxilo education loans are designed to provide flexibility and convenience. Repayment typically begins after the moratorium period, which includes the course duration plus a buffer of 6-12 months (depending on your loan terms). Here’s a step-by-step guide to help you understand the repayment process:
Loan Approval and Disbursement
The loan approval process with Auxilo involves submitting necessary documents such as admission letters, cost estimates, and proof of identity. Once the loan is sanctioned, the education loan disbursement is done directly to the educational institution as per the fee schedule. Auxilo ensures a seamless process, allowing students to focus on their academic goals without financial stress.
Moratorium Period
The moratorium period in an Auxilo education loan is a grace period that includes the course duration plus an additional 6-12 months after completion, during which borrowers are usually required to pay only the interest. This flexible window allows students to focus on their studies and secure a stable income before starting full EMI payments, making loan repayment more manageable.
Also Read: Planning to open a bank account abroad? Check here all about the HSBC International Student Account
Repayment Tenure
Auxilo offers flexible repayment tenures ranging from 10 to 15 years, allowing borrowers to choose a plan that suits their financial situation. Longer tenures reduce monthly EMI amounts, making repayment easier to manage, especially during the initial stages of one’s career. This flexibility ensures students can balance their loan obligations with other financial priorities.
Modes of Auxilo Education Loan Repayment
Auxilo provides multiple repayment options for borrowers’ convenience, including Electronic Clearing Service (ECS) for automated EMI deductions, online transfers via their portal, and UPI payments for instant transactions. Borrowers can also use post-dated cheques or set up standing instructions with their bank to ensure hassle-free and timely repayments. These flexible modes cater to diverse financial preferences, simplifying the repayment process.
Electronic Clearing Service (ECS)
Electronic Clearing Service (ECS) is a convenient repayment method where your Equated Monthly Installments (EMIs) are automatically deducted from your designated bank account on a scheduled date. This ensures timely payments without manual intervention, helping you avoid late fees or missed instalments. ECS is a hassle-free option that offers reliability and peace of mind throughout the repayment tenure.
Also Read: Check here all the details and tips about SBI Education Loan Repayment
Post-Dated Cheques
Post-dated cheques (PDCs) are a traditional repayment option where borrowers provide cheques dated for future EMI due dates. These cheques are presented for clearance as per the schedule, ensuring timely payments. While this method offers control over repayments, borrowers must maintain sufficient funds in their accounts to avoid cheque bounces and related penalties.
Online Transfers
Online transfers provide a seamless and quick way to repay your Auxilo education loan. Borrowers can make direct payments through Auxilo’s secure online portal or via internet banking. This method allows real-time transaction updates, ensuring timely payments and reducing the risk of delays. It’s a flexible and efficient option for those preferring digital convenience.
Standing Instructions
Standing instructions allow borrowers to set up automatic monthly deductions for their loan repayments from their bank account. Once set up, the bank will deduct the EMI amount on the specified date each month without requiring any further action from the borrower. This ensures timely payments, eliminates the risk of forgetting deadlines, and provides a hassle-free way to manage loan repayments.
Benefits of On-Time Repayment of Auxilo Education Loans
On-time repayment of your Auxilo education loan offers several advantages, including an improved credit score, which can help secure future loans at better terms. It also prevents late fees, reduces the overall interest burden, and builds financial discipline. Consistently making timely payments enhances your credibility, making you eligible for additional financial support if needed, while ensuring a stress-free loan experience. Check more details below:
- Consistently paying your EMIs on time boosts your credit score, which can be advantageous for future financial needs like home loans or personal loans.
- Some lenders, including Auxilo, offer interest rate discounts for borrowers who maintain a record of on-time payments.
- Paying your loan on time eliminates the worry of penalties or additional charges, allowing you to focus on your studies or career.
- Timely repayment enhances your credibility, making you eligible for additional loans in the future.
Auxilo education loans provide international students with the financial support they need to achieve their dream of studying abroad. By understanding the repayment process and leveraging flexible payment options, borrowers can ensure a smooth repayment journey. Check some common FAQs below:
FAQs
The moratorium period is the grace period during which borrowers are typically required to pay only the interest on the loan. It includes the course duration plus 6-12 months after completion to help students settle into their careers before full EMI payments begin.
To apply, you need to visit Auxilo’s website or contact their customer support. You’ll need to submit documents like admission letters, fee structure, identity proof, and academic records for evaluation.
Eligibility includes being an Indian citizen, having an admission offer from a recognized institution, and meeting the required academic qualifications. Age, course type, and financial need are also considered during loan approval.
The repayment tenure for Auxilo loans typically ranges from 10 to 15 years, depending on the loan amount and agreement. A longer tenure means smaller EMIs, providing more flexibility.
Auxilo offers several repayment modes including Electronic Clearing Service (ECS), post-dated cheques, online transfers, UPI payments, and standing instructions for automatic bank deductions.
Yes, you can start paying off the interest during the moratorium period if you choose to reduce your overall loan burden. However, full EMI payments begin once the moratorium ends.
Once your loan is approved, the amount is disbursed directly to the educational institution as per the fee schedule, making the process seamless for the borrower.
Missing a payment may result in penalties and impact your credit score. It’s important to set up reminders or automated payments to avoid this issue.
Yes, you can make early repayments or prepay your loan without any penalty, which can reduce your outstanding balance and interest burden.
On-time repayment improves your credit score, helps avoid additional charges, and may make you eligible for future loans with better terms. It also reduces financial stress and ensures a smooth borrowing experience.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
Follow Us on Social Media
