Avanse Disbursement Process

Updated on: 30 Sep 2023

The disbursement process at Avanse is as simple as its loan application process. The entire loan process takes around 5 - 7 days after document submission. Once you have submitted the required documents, the bank will approve your loan request and issue a sanction letter. Avanse will issue an in-principle approval through a loan offer letter. It will include the loan amount you qualify for, any case-based documents required, and other details of the loan. This loan offer letter or the Avanse education loan sanction letter can also be used as a source of funds during your admission process

Avanse offers additional features on education loans such as pre-visa disbursement, pre-admission, bridge, and fast-track loans, and offers benefits based on the applicant's credit score. Avanse Financial Services aims to ensure that students do not face any financial difficulties while pursuing their education abroad, which can help them advance their careers.

Here is your comprehensive guide on education loan sanction letter and process 

Overview of the Avanse abroad education loan 

Avanse education loan disbursement process

The Avanse education loan disbursement process is pretty straightforward. After you receive your Avanse sanction letter, the loan amount is disbursed in INR. The loan amount can be provided by a DD (demand draft), cheque, or transferred electronically. The easiest and most preferred method of disbursement is getting the loan amount transferred electronically to a co-applicant account. Your tuition fee is disbursed directly to the university. The remaining funds are disbursed in your or your co-applicants account.
 

1. Tuition fees: The tuition fees and accommodation costs are directly transferred to the respective university, in installments, as per the requirement.
    
2. Accommodation: If the student is living off-campus the loan amount for the off-campus accommodation will be transferred to the co-applicant account.
    
3. Other expense: The loan amount related to other expenses such as the purchase of equipment, books, etc. will be transferred to the co-applicant’s account. It will be disbursed in installments throughout the study period.
    
4. As per the loan agreement, students can also request for the loan amount to be transferred to a third-party FOREX card. 

Once the loan is disbursed, the borrower will be required to start repaying the loan as per the repayment schedule. The repayment can be done through post-dated cheques or electronic clearing services (ECS).

Once you are through with the education loan disbursement process your next step is to ensure the timely repayment of the Installments. Use Gyandhan's education loan EMI calculator to plan your repayment schedule. It's quick, easy, and will give you a clear understanding of your monthly repayments. 

Documents required for the Avanse disbursement process

During the disbursement process, Avanse requires a set of documents. A general list of documents is as follows -

1. Fee structure and proof of admission
2. KYC documents of the applicant and the co-applicant - includes PAN card, Aadhar card, and Passport
3. Signature verification from the bank
4. Loan application form with a signed photograph
5. Signature verification from the bank
6. In the case of pre-visa disbursement, an undertaking has to be submitted
7. The co-applicant will have to submit 9-12 post-dated cheques as security, in case the co-applicant cannot make an interest payment in a particular month
8. NACH form - It will be attached to the loan agreement booklet applicants receive. Applicants can complete this step online.
9. Repayment account documents - at most 4 cheques have to be submitted. The cheques should be from the bank from where the EMI payment will be made

Note: There might be some subjective conditions that would require additional case-based documents.

Perks of Avanse education loan

Avanse is a preferred choice for education loans, especially for those with average academic records or low CIBIL or GRE scores. GyanDhan's partnership with Avanse offers several benefits for students seeking education loans. The loan processing time is faster, with approval in just 5-7 days, and it's free of cost. Additionally, the chances of approval are higher due to GyanDhan's intervention in case of hurdles.

Read also:

• How to plan your education loan repayment?
• What are the expenses covered under education loan?
• How to get an education loan with low CIBIL score
• How is the GRE score calculated

Frequently asked questions

• Education loan 
• Student loan 
• Avanse 
• Study abroad 
• University of Western Australia 
• Loan Disbursement 

First published date: 16 Sep 2020