Avanse Education Loan: All You Need to Know

Avanse Financial Services offers education loans to Indian students for both domestic and international studies. It covers expenses like tuition fees, cost of living, and travel costs up to INR 75,000 for the applicant. If an eligible student submits their documents on time, they can get the loan disbursed in just 3 days.

The moment a student decides to pursue higher studies the first thing that comes to mind, is how to finance my dream of higher education. The options are limited. While scholarships are a viable option for some, most students rely on savings or education loans. There are multiple education loan providers in India including banks and NBFC. A popular education loan provider is Avanse Financial Services, providing loans for both domestic and international studies.

It covers expenses like tuition fees, travelling costs, accommodation expenses, cost of living, and other education-related costs. If a student meets the eligibility criteria, submits their documents on time and fulfils the company’s requirements, they can get the education loan sanctioned in just 3 days*. In this article, we will cover information about Avanse Education Loans to study in India and abroad. Also, we’ll let you know about key features, eligibility, repayment options and how to apply for Avanse Student Loan. 

Avanse Education Loan

Avanse Financial Services is a new-age, education-focused NBFC. It offers study loans to make education financing seamless and affordable for every deserving Indian student.. Avanse Financial Services has offered education loans for 1,580+ educational institutions located in 49 countries across the world.

Student loans offered by Avanse are one of the best education loans in India as they cover the holistic cost of education, including tuition fees, travelling expenses, living costs, learning devices, and other education-related expenses. Also, students can customise their loans according to their needs. From pre-visa education loans to score-based benefits, Avanse Financial Services offers financing solutions that consider a wide spectrum of students’ needs.

Also Read:

Vidyalakshmi Education Loan	Indian Banks Offering Education Loans for Studying Abroad
Education Loan Calculator	Public v/s Private Education Loan Providers

Key Features of Avanse Education Loan

Here are some key features of the Avanse education loan:

• Quick Disbursal Process: If you meet their eligibility criteria and submit documents on time, then you can get quick disbursal in just 3 days*. (Please remember that your student profile will be thoroughly examined to determine your employability potential)
• Floating Interest Rates: Avanse Education loan is available at only floating ROI. It means it can change based on different conditions.
• Flexible Repayment Options: You can choose desired repayment options, as tenure is up to 17 years. 
• With Collateral or Without Collateral: Students can choose between secured (with collateral) and unsecured (without collateral) education loans based on their financial requirements and preferences.
• No Limit on Maximum: Students can borrow any amount they need. The minimum education loan amount is Rs. 1 Lakh.

Expenses Covered Under Avanse Education Loan

The overseas education loan covers expenses like tuition fees, living expenses, travel expenses, the price of books, devices and other equipment for learning, and refundable deposits. Now, let’s understand the expenses better.

• Tuition Fee: Up to 100% of the university tuition fee.
• Living Expenses: 75% of the cost of living, including the purchase of books, computers and other equipment, as long as it does not exceed 20% of the tuition fee.
• Travel Expenses: Upto INR 75,000 to cover the travel expense of student only.
• Other Expenses: Up to 100% of the building fund or caution deposit or refundable deposit as long as it does not exceed 10% of the tuition fee and comes with valid bills or receipts from the educational institution.

Eligibility Criteria of Avanse Education Loan

To borrow the education loan offered by Avanse Financial Services, students need to meet basic eligibility requirements. No student will get approval for an education loan without fulfilling the eligibility criteria. Here we have mentioned point-wise Avanse Student Loan eligibility: 

For students

• Nationality: Applicant must be an Indian citizen
• Age: The applicant should be 18 or older
• Admission: Should have a confirmed admission before the final disbursal
• Co-borrower: Should have a co-borrower who earns in India

For Co-borrowers

• Who can be a co-applicant: The co-borrower should be an Indian citizen and must be a parent, legal guardian, sibling or other blood relative.
• Bank account: Should have a bank account in India that allows them to sign cheques
• Responsibility: Must be the primary debtor

Related Read:

• Things to Know Before Applying for a Foreign Education Loan
• Education Loan Eligibility

Documents Required for Avanse Education Loan

After eligibility, now let’s understand which are the required documents you should have to apply for Avanse Education Loan. Below, we have mentioned a list of documents required for an education loan:

Documents Required For Avanse Student Loan
From Students	2 colour passport-sized photos Photo ID Residence proof Date of birth proof Signature verification Academic documents (marksheets, certificates, etc.) Proof of admission Fee structure
From Co-Applicant	2 colour passport-sized photos Photo ID Residence proof Date of birth proof Signature verification Income proof Collateral documents 8-month bank statement Relationship proof

Collateral Documents

If you choose a secured education loan, the collateral Avanse accepts as security includes:

• Resident property (house or apartment)
• Fixed deposit
• Non-agricultural land

How to Apply for Avanse Education Loan?

The process of applying for an Avanse Student Loan is not complex at all. There are just 4 steps to complete the education loan process. We have mentioned the step-by-step process below:

• Visit the official website of Avanse Financial Services to apply online, or visit their nearest branch office.
• An Avanse representative will connect with you for counselling.
• Submit all the documents required.
• If you tick all the boxes, your education loan will be approved.

Tips to Apply for Avanse Student Loan

To get the education loan approved quickly, you need to help the counselling team. Here are some tips for it:

• Prepare all the documents before you apply.
• If possible keep scanned copies of documents.
• Share accurate information about yourself and your academics
• Keep in contact with loan representative and be available on calls/emails

Avanse Education Loan Interest Rates

Avanse Financial Services offers education loans at a floating rate of interest. The formula to calculate the Avanse education loan interest rate is Avanse Base Rate + Spread.

Here, the current base rate is 14.55% (w.e.f. 1^st December 2024). Meanwhile, the Spread percentage changes periodically based on your overall credit and course profiling. The interest rate may vary due to various macroeconomic factors and the company policies.

Loan Processing Fee

The processing fee of student loans offered by Avanse Financial Services varies between 1% to 2% of the education loan amount. The final amount of the loan processing fee depends on your application and may vary on a case-to-case basis. However, you will get to know about the exact percentage when you speak to an Avanse representative.

How to Repay Avanse Student Loan? 

Repayment of education loans is crucial to understand. It helps you to understand how much amount you are actually going to repay the lender against your student loan. You can choose to start the repayment after the college time or during the college time. Here are some information that you should know about repaying Avanse education loan:

• Loan Tenure: Varies between 12 months and 17 years
• Moratorium Period: 6 months post-course completion or 3 months after finding a job, whichever is earlier.
• Flexible Repayment options:
  • You can pay simple interest (SI)/partial interest (PI) during the course
  • EMI payment during the course
  • EMI payment after the course and more flexible options

Related Read: How to Repay Student Loans Faster?

This is all about the Avanse Education Loan offered by Avanse Financial Services. We have covered every possible query of a student who wants to apply for a student loan. If you have any queries or want to ask anything related to this, feel free to connect with us. Also, you can mention your query in the comment box below.

You can Apply for education loan through Shiksha Study Abroad.