Education Loan

Avanse Disbursement Process

Avanse Disbursement Process

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Read GyanDhan’s guide on Avanse disbursement process, documents required for disbursement, and perks of the Avanse education loan.

GyanDhan
Ananya Ghai
Updated on:  19 Feb 2024  | Reviewed By: 
Aman 
| 16.2K | 5  min read


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 

  1. Avanse education - overview
  2. Avanse - Disbursement process
  3. Documents required for Avanse abroad education
  4. Perks of education loan from Avanse
  5. Frequently asked questions
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Overview of the Avanse abroad education loan 

Feature Description

Loan amount

Up to INR 75 Lakh

Rate of Interest

12.5 - 13.5%

Processing Fees

0.5 - 1%

Processing time

5 - 7 days

Margin money

nil

Moratorium period

Course duration + 1-year

Repayment tenure

15 years

 

Check Your Education Loan Eligibility

 

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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. 


Read more about: Repaying Avanse Education Loans: A Comprehensive Guide

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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

 

 

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

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Perks of Avanse education loan

Advantage Description

Expenses covered

Cover 100% of expenses incurred

Pre-visa disbursement

Pre-visa disbursement for selected universities and courses

Pre-admission loan

Provides a certificate of availability of funds to students that can be presented at the time of admission. 

 

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:

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

    Can Avanse cancel my sanctioned loan?

    Avanse cannot cancel a sanctioned loan without a valid reason, such as the borrower providing false information or defaulting on the loan agreement. However, if there are any changes in the borrower's circumstances or creditworthiness, Avanse may reassess the loan and adjust the terms or cancel it altogether.

    Can I apply for an education loan if I have already started my course?

    Yes, you can apply for an education loan from Avanse even if you have already started your course. However, the loan approval and disbursement process may take longer than usual, and you may need to provide additional documents.

    Is there a penalty for pre-paying the education loan?

    No, there is no penalty for pre-paying the education loan. In fact, Avanse encourages early repayment as it can help reduce the overall interest burden.

    Can I change my repayment plan during the loan tenure?

    Yes, you can change your repayment plan during the loan tenure. However, you will need to inform Avanse about the changes and provide the necessary documents to support the changes.

    Can students apply for an education loan from Avanse even before securing admission to a university?

    Yes, students can apply for an education loan from Avanse even before securing admission to a university. Avanse offers a certificate of availability of funds to students that can be presented at the time of admission.

    Check Your Education Loan Eligibility


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