How to Get an Avanse Education Loan Quickly

In your quest for higher education, an education loan plays a very important role. With the cost of higher education rising, many deserving students find it difficult to meet the educational expenses that are associated with higher education, both in India and abroad. It is at this crucial juncture that higher education loans come as a savior. Both banks and NBFCs give out education loans. In this blog, we will discuss the education loan from Avanse. So, without further ado, let’s get going.

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What is the Avanse education loan?

A non-banking financial corporation (NBFC), Avanse has been leading the way for NBFCs when it comes to offering education loans. With the aim of making education accessible for all, they started Avanse education loan for studying in India and abroad. In fact, they claim to hold the leadership position in education loans among popular NBFCs offering education loans and were awarded “The Best education loan provider: in 2019 by BFSI. Avanse education loan for abroad study covers more than 6,000 courses at 1,626 universities and 1,262 colleges across 44 countries.  

What are the different kinds of education loans offered by Avanse?

Avanse offers tailor-made education loans to its applicants. The NBFC offers study loans for studying in India as well as abroad. Based on a student’s profile, Avanse offers both secured as well as unsecured loans. Avanse education loan covers all expenses related to studying and includes not just the tuition fee but also the living expenses. More details: 

1. Education Loan for Studying in India The minimum loan amount for studying in India is INR 1 lakh and the maximum loan amount is INR 40 lakh. However, the NBFC does give out higher loan amounts, depending on the fees of the program and the candidate’s profile.  The study in India education loan covers 100% of the tuition fee and 75% of the living expenses too. It should be noted here that the living cost (which also includes books, computers, and other study materials) should not exceed 20% of the tuition fee.  The loan also covers Caution deposit, building funds and refundable deposits if proper receipts are provided. This should not be more than 10% of the tuition fee.  Students can get an Avanse Education Loan Without Collateral as well as education loans with collateral, based on their profile, for studying in India. The security required for the loan is determined by the credit-worthiness of the borrower as well as the amount of loan that has been requested. 
2. The minimum loan amount for studying in India is INR 1 lakh and the maximum loan amount is INR 40 lakh. However, the NBFC does give out higher loan amounts, depending on the fees of the program and the candidate’s profile. 
3. The study in India education loan covers 100% of the tuition fee and 75% of the living expenses too. It should be noted here that the living cost (which also includes books, computers, and other study materials) should not exceed 20% of the tuition fee.  The loan also covers Caution deposit, building funds and refundable deposits if proper receipts are provided. This should not be more than 10% of the tuition fee. 
4. Students can get an Avanse Education Loan Without Collateral as well as education loans with collateral, based on their profile, for studying in India. The security required for the loan is determined by the credit-worthiness of the borrower as well as the amount of loan that has been requested. 
5. Education Loan for Studying Abroad The minimum loan amount for studying abroad is INR 1 lakh and the maximum loan amount is INR 40 lakh. However, the NBFC does give out higher loan amounts too, depending on the fees of the program and the candidate’s profile.  Study abroad education loan covers 100% of the tuition fee and 100% of the living expenses too. It also includes travel expenses of up to INR 75000.  Students can get an education Loan without collateral as well as an education loan with collateral, based on their profile. 
6. The minimum loan amount for studying abroad is INR 1 lakh and the maximum loan amount is INR 40 lakh. However, the NBFC does give out higher loan amounts too, depending on the fees of the program and the candidate’s profile. 
7. Study abroad education loan covers 100% of the tuition fee and 100% of the living expenses too. It also includes travel expenses of up to INR 75000. 
8. Students can get an education Loan without collateral as well as an education loan with collateral, based on their profile. 

What is the margin money for an education loan from Avanse?

Avanse does not mandate any margin money for its education loans. 

What are the Avanse education loan requirements? 

The Avanse education loan eligibility criteria is as follows -

• Personal Details - Students applying for an education loan at Avanse should be an Indian citizen and must be above 18 years. They should also have got confirmed admission to a recognized institute before the final loan amount is disbursed. Similar to other lenders, Avanse also makes it mandatory that the education loan must be signed by a co-borrower. 
• Co-borrowers Personal Details - The co-borrower who signs the education loan should be an Indian citizen. Parents, siblings, relatives or guardians of the student can become the co-borrower of the student. The co-borrower should be an earning individual in India. 
• The Target Program -- The education loan is offered for students pursuing most traditional and non-traditional courses. This includes medicine, engineering, law, hospitality, management, culinary, arts, aviation, media studies and many others. The target university or institute should also be approved by relevant bodies and Avanse Financial Services Limited. 

What is the Avanse education loan interest rate?

Avanse offers educational loans at competitive rates of interest. The ROI is calculated as “Interest Rate = Avanse Base Rate + Spread". The current base rate, as of November 2018, is 12.65%. The “Spread” for education loans from Avanse depends on course profiling and an analysis of overall credit quality. The Avanse education loan rate of interest is typically between 11.75% - 16%. Avanse also gives score-based benefits. This means that students with exceptional scores get special privileges like a preferential rate of interest.

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What are the documents required for Avanse education loan?

Students applying for an education loan need to submit 2 color photos, a photo identity proof, residence proof, date of birth proof, signature verification, academic documents, proof of admission and the fee structure. The co-applicant with the student needs to submit 2 color photos, a photo identity proof, residence proof, date of birth proof, signature verification, bank statement of the last 8 months, proof of income, collateral documents and relationship prof. If there is an additional co-applicant, they need to submit all the documents that the primary co-applicant needs to submit. If the loan also has a guarantor, the guarantor has to submit 2 color photos, a photo identity proof, residence proof, date of birth proof, signature verification, income proof and collateral documents. 

The above list is a general list of documents that are required by Avanse and may change on different factors. GyanDhan gives a customized list of documents to students who apply for an Avanse education loan through us. 

What is the repayment period for an Avanse education loans without collateral?

The minimum repayment tenure for an Avanse Education loan is 12 months while the maximum tenure is 120 months. The maximum repayment tenure also includes the course duration. The NBFC gives a grace period of 6 months once the course gets completed or three months from starting a job. 

Also, check - How To Get Abroad Education Loan From ..

• State Bank of India 
• Bank of Baroda 
• HDFC Credila
• Prodigy Finance
• Axis Bank
• ICICI Bank
• InCred
• Auxilo

What are the additional loan charges when taking an education loan from Avanse?

• Prepayment - Avanse does not allow pre-payment of the loan for the first 6 months of loan disbursement. Thereafter, students can pre-pay their loan without any penalty.
• Processing Fee - Avanse education loan processing fee between 1-2% of the loan amount. This amount varies from case to case. 
• Late Payment Charges - Avanse charges 2% per month for late payment of PMII or EMI. For cheque or ESS swap, it charges INR 500+ GST. If the cheque or ECS bounces, it charges a penalty of 400+GST. Avanse also charges INR 1500 + GST for document handling charges at the time of foreclosure. 

What are some other features of Avanse education loan? 

• The Avanse education loan process is fast, transparent and hassle-free. Students who need to show “proof of finances” at a University abroad to secure admission can apply for an Avanse pre-admission loan. It should be remembered here that the final loan amount will only be disbursed on receipt of the confirmation letter from the University. 
• Students who have already received a confirmed letter of admission or their I-20(USA), can apply for pre-visa disbursement loan. This may help them present a stronger financial front during their visa process. 
• The normal loan processing time for an Avanse Education loan is between 5-7 days.
• Depending on the student’s profile and the target course, the NBFC demands payment of simple interest or partial simple interest during the study period. 

How can Gyandhan help you get an Avanse abroad education loan quickly?

Now that our readers know the A to Z of Avanse education loan, the next obvious question would be “how to apply for the loan”? Avanse is one of our partners and we have a fast, efficient, fully online process mapped out, which ensures a greater chance of loan approval, in addition to a quick turn around. GyanDhan’s does not charge any processing fee from its students and thus students get our loan application service absolutely free! What’s more, you don’t need to go anywhere physically - just apply and upload your documents on our website and we take care of the rest. We even provide step-wise updates through notifications so that you know exactly where your loan application process is. So, what are you waiting for? Apply here and make your dream of higher study a reality now.