Education Loan

Repaying Avanse Education Loans: A Comprehensive Guide

Repaying Avanse Education Loans: A Comprehensive Guide

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Read GyanDhan’s comprehensive guide on how to repay avanse loan. URL Slug: how-to-repay-avanse-loan-gyandhan

GyanDhan
Ananya Ghai
Updated on:  29 May 2024  | Reviewed By: 
Aman 
| 489 | 5  min read

Education loans provide the financial support required to pursue higher education, making them a significant financial investment. But after your education is over, the emphasis turns to paying it back. This thorough guide seeks to help borrowers successfully manage their loans by navigating the complexities of how to repay an Avanse loan.
 

It's crucial to manage your finances by understanding how to repay an Avanse loan. Repayment plans that are simple to adhere to and maintain your financial stability have been developed by Avanse Financial Services. We'll examine various loan repayment strategies in this guide, including interest-bearing while you're still in school, making monthly payments (EMIs), and using online payment options. Let's first simply understand the characteristics of the Avanse overseas education loan before delving into the specifics of how to repay it. 

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Features of 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

7-10 days

Margin money*

nil

Moratorium period*

Course duration + 1-year

Repayment tenure

15 years

*Moratorium period is the time duration during which you are not required to make payments toward your education loan.

*Margin money refers to the amount of money a borrower is required to contribute towards the loan, while the lender pays the remaining amount. 

Check Your Education Loan Eligibility

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How to Repay Avanse loan?

Borrowers can choose from multiple options for managing their Avanse education loan repayment, providing flexibility and convenience. The following are the main tactics and available payback options:

Equated Monthly Installments (EMIs): By making set monthly payments, EMIs provide a methodical way to pay off your loan. By paying off both the principal and interest on your loan, this method helps you gradually lower your loan balance.

Interest payments during the course: Students can choose to pay simple or partial interest during the course's moratorium period in order to reduce their post-graduation financial burden. Although students are not required to pay EMIs during this grace period, interest continues to accrue and impacts the overall loan repayment amount. During this period, interest payments can drastically lower the total cost. 

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What are the modes of Repayment of Avanse Education loan? 

Borrowers can choose from multiple options for managing their Avanse Education Loan repayment, providing them with flexibility and convenience. Among such methods are:

  • list items Equated Monthly Installments (EMIs): A planned method of paying back the loan in fixed monthly installments that include both the principal and interest. This makes it a methodical way to reduce debt.
  • list items Serving simple or partial interest during the course: This option allows you to pay simple or partial interest during the moratorium period of the course, which can help you save money overall because accruing interest is still owed during this time.
  • list items National Automated Clearing House (NACH): A system by the National Payments Corporation of India (NPCI) for automating monthly EMI payments directly from the borrower’s bank account, requiring a NACH mandate for authorization.
  • list items Electronic Clearance Services (ECS): Similar to NACH, ECS is used for automatic EMI deductions from the borrower’s account, with the main difference being the processing time for transaction settlement.
  • list items Cheques: Repayment can also be made by submitting cheques directly at Avanse Financial Services.  
  • list items Post-Dated Cheques (PDCs): Borrowers can provide pre-signed cheques with future dates for the clearing of EMI payments on specified dates.
  • For added convenience, Avanse Financial Services also provides online and digital repayment options. These digital methods accommodate the preferences and conveniences of contemporary borrowers by making repayment simple and hassle-free.

  • list items UPI apps
  • list items Digital wallets
  • list items Easy Pay
  • list items Internet Banking
  • list items Debit Cards  

  • Read more about: InCred vs. Avanse: Which is Better for Abroad Education Loans?

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    When to Start Avanse Education Loan Repayment?

    It is advisable to begin simple or partial interest payments towards loan repayment as soon as possible, even if the loan is in a moratorium. Even though complete repayments are not necessary during this time, there are several advantages of making simple or partial interest payments. Wondering about the best ways to plan your repayment, click here and look no further.

     

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    What are the Benefits of Early Repayment of Education Loans?

    Repayment of the Avanse Education Loan during the moratorium is a smart financial move. It assists in lowering the overall cost of the loan as well as fostering sensible financial behaviour. With this strategy, students will be in a better position to handle their debts wisely and become financially stable sooner. Some advantages of early repayment of your education loan are listed below.

  • list items Reduces the total interest accumulated  
  • During the moratorium period, interest on student loans is still resulting even if no repayments are made. It is possible to significantly lower the total interest that accrues over the loan term by opting to pay off the interest entirely or in part during this period. This strategy lessens the borrower's overall financial burden.

  • list items Decreases the loan tenure

  • An early payment may also result in a shorter loan term overall. Depending on their financial circumstances, borrowers can opt to either lower the monthly payment amount or shorten the loan period with a smaller principal amount to be repaid after the moratorium period.

  • list items Encourages financial discipline

  • An early start to the repayment process promotes discipline and financial responsibility. Effectively managing loan repayments from the start can assist borrowers in building a solid credit history, which is advantageous for any upcoming financial undertakings, like requesting a mortgage or another loan.

  • list items Eases the repayment burden

  • Students can reduce the financial pressure that usually results from beginning loan repayments after the moratorium period by starting early. This proactive strategy relieves the immediate burden of sizable loan repayments, enabling a more seamless transition into the workforce.

  • list items Prepares for future financial obligations

  • An intelligent move, early repayment helps students get ready for their future financial responsibilities. Students can better manage their finances when they enter the workforce by progressively incorporating loan repayments into their budget, lowering their risk of financial hardship.

    If you're a student looking for personalized guidance or more help navigating your options for an education loan, let GyanDhan be your tour guide for your study abroad experience. By forming alliances with top lenders like State Bank of India, Bank of Baroda, ICICI Bank, Axis Bank, Avanse, and HDFC-Credila, we hope to offer prospective students the greatest loan choice. We provide end-to-end services that streamline the process of obtaining an education loan, acting as a comprehensive ally for students starting their academic journeys overseas. Starting with selecting the best loan provider that fits the student's specific financial needs and academic objectives to actual disbursements we are here at your rescue. To begin your journey towards an education loan, check your eligibility now!

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    Frequently Asked Questions

    How to repay Avanse loan?

    Repayment at Avanse begins 6 months after employment or 12 months after course completion, whichever comes first. After the grace period is over, the borrower must begin making EMIs payments on his loan.

    What is the repayment period for the Avanse education loan?

    Avanse provides a repayment period of more than 10 years. They also offer a grace period that lasts for 3 months after you find employment or 6 months after the day you complete your course.

    What happens if we fail to pay the education loan?

    The lender may report you to credit bureaus and classify you as a defaulter if you don't make payments within the allotted time. Defaulter status can have a negative impact on your credit score and prevent you from obtaining new credit. Pay your loan EMIs on time to avoid this.

    Check Your Education Loan Eligibility


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