Whether you are planning to study in your home country or abroad, education loans and scholarships can help you seek the best financial aid for your academic aspirations. While most of us often speculate about whether education loans are the best choice or not, there are several popular education loans in India that you can choose from. One such education loan is offered by Avanse which provides education loans for those planning to study in India or abroad. To make it hassle-free for students and their parents, Avanse has simplified the education loans and their cumbersome application process and offers phone or house call services as well. Read this blog to know all about Avanse Education Loan, its various types, interest rates, the application process, repayment, and more!
Why Is An Education Loan A Smart Option?
Higher education is costly, particularly if you intend to study abroad. To afford expenditures, parents may be forced to deplete their resources or liquidate their possessions. In this situation, education loans provide a simple solution to keep track of these costs. It offers a complete financial solution to ensure that a lack of cash never stands in the way of your academic goals. With Avanse, you receive a financial companion that helps you achieve your goals quickly and independently. More significantly, you save your money and invest your assets. There’s more: you’ll improve your credit score in the process, which will come in handy if you ever need a house loan or a marriage loan in the future. This is the ideal win-win situation.
Benefits of Taking Avanse Education Loan for Abroad Studies
- There is no margin money in 100% financing
- Repayment choices are varied
- For urgent situations, 1-day loan approval is available
- Personalized education loan options
- For students travelling overseas, the education loan also covers living fees, caution deposit/building fund/refundable deposit, and travel expenses
- The loan amount has no set limit
- After an education loan is disbursed, you may maintain your account online
Avanse Education Loan in India
This education loan is for those planning to pursue higher education in India but seeking some financial assistance to land their dream university. Let’s take a look at the features of the Avanse Education Loan for studying in India:
The courses you can get a loan for under the scheme of Avanse education loan in India are given below:
- Graduation, post-graduation, and professional degree, diploma courses conducted by colleges or universities approved by UGC, AICTE, IMC, Government, etc.
- Technical or professional courses like engineering, medicine, law, management, aviation, etc.
- Degree or diploma courses offered by autonomous institutions like IIT, IIM, etc., and approved by Avanse Financial Services Ltd.
- Courses offered in India by any of the reputed foreign universities will also do.
- Vocational training, executive programs, and other courses that have been approved by Avanse Financial Services Ltd work too.
Avanse Education Loan Repayment
Avanse offers you the flexibility of repaying your education loan while still in school as well as on completion of your course. Here are the major methods to repay your Avanse Education Loan:
- Interest servicing during the course
- Partial interest servicing during the course
- EMI repayment during the course
- EMI repayment post-holiday or moratorium period
- Step up repayment facility is also available
Check Out: Education Loan without Collateral
Avanse Loan for Studying Abroad
The benefits of studying abroad are almost endless including access to better jobs, and building a bright future for yourself among others. Studying abroad also helps you grow as a person as you meet new people and experience new cultures therefore more than 750,000 Indian students choose to study abroad every year. Thus, to help students fulfil their aspirations to study abroad, Avanse Education Loan is offered in the following types:
- Bridge loan
- Score based Benefits
- Pre- Admission loan
- Fast track loan
- Certificate of availability of funds
- Universities in India and overseas offer graduation, post-graduation, job-oriented professional/technical courses, and professional degree/diploma courses.
- Engineering, management, and aviation are examples of professional courses.
- Degree/diploma programmes are available through autonomous universities such as IIT.
- Foreign institutions offering courses in India.
- Vocational training, executive programmes, and other studies are available.
Repayment Facility for Studying Abroad Loans
The repayment facilities for the Avanse education loan for studying abroad are:
- The minimum repayment tenure is 12 Months.
- The maximum repayment tenure is 120 Months which includes the course duration
- The grace period is of 6 months after the course is complete or 3 months after getting the job.
How to Apply?
You can apply for an Avanse Education Loan process before you are enrolled in your course. However, the disbursement of the loan will only be done after you have secured a confirmed admission at the institute or university to which you have applied to.
Here is how you can apply for Avanse Education Loan:
- Click Here to apply online or you could simply write to them at firstname.lastname@example.org
- While applying for your education loan:
- Ascertain how much finance you need from the Avanse loan
- Finalize the course you plan to pursue and the university you would be studying at
- Identify the co-applicant or guarantor for the loan
- Check all the documents that are required to be submitted for the loan
- Submit the application form duly filled in and complete
- Apply for the education loan well in advance to ensure that the disbursement is on time.
Avanse has its education loan calculator for students and co-borrowers where you can check your eligibility. Here are the basic eligibility requirements for Avanse Education Loans:
Eligibility for Students
- You must be an Indian citizen to qualify for an education loan.
- You must be at least 18 years old.
- You must have an institution admissions confirmation. When you obtain a university seat, educational institutions will send you a Confirmation of Acceptance for Studies (CAS) letter.
- Most education loan providers will demand a co-applicant before granting you a student loan. A parent, sibling, legal guardian, or cousin can be a co-applicant.
Eligibility for the Co-Borrowers
- The co-borrower can be a parent, sibling, legal guardian, or relative but this person should be a citizen of India.
- The co-borrower must have a bank account in any of the banks in India with cheque-writing facilities.
- The co-borrower would necessarily be the primary debtor in this loan.
The minimum amount for Avanse Education Loan is 1 Lakh INR but they do not put limits on your dreams even in India so they structure your domestic loan to meet your necessary needs and the cost of education that works for both parties. Their education loans are designed to provide 100% coverage of the cost of education making it easy for the student and the co-borrower. The loan covers the following aspects of your education:
- 100% tuition fee as determined by the institute or university to which you have taken admitted.
- Living expenses include the purchase of books, computers, and other expenses essential to completing the course. Up to 75% of total living costs though not exceeding 20% of the total tuition fee will be covered.
- Caution deposit, building fund, and refundable deposit, supported by institution bills/receipts are also covered provided that these don’t exceed 10% of the total tuition fee
- Travel expenses/passage money up to Rs. 75000/- for students travelling abroad.
Here is how the interest rate is calculated for Avanse Education Loan:
Interest Rate = Avanse Base Rate + Spread
The current Base Rate is 12.65%. Avanse’s processing fee is between 1-2% of the loan amount and is calculated on a case-to-case basis so the final amount is arrived at in the course of processing the loan application.
The education loan amount is provided to you through:
DD –Demand draft/cheque or it can be electronically transferred to the designated bank account whichever works for you and meets your needs.
Must Read: Best Education Loan in India
We have provided a list of all the documents you will need to provide for the loan below:
- 2 colour photos
- Photo ID
- Student KYC including Residential Proof
- Date of the birth proof
- Signature for verification
Here are some more specific documents you need for the application:
- Academic documents, proof of admission, and fee structure for the student;
- 8-month bank account, income proof, and collateral documents along with the relationship proof with the student for the co-borrower;
- Income proof and collateral documents for the guarantor
Check out more Loans to Study Abroad!
Avanse Loan- Maximum Loan Amount
|Ireland||15- 18 L|
|Australia||10- 12 L|
Avanse Education Loan Interest Rate in 2023
|Avanse Interest Rate in 2023 Bracket||14% depending on the student’s profile|
Avanse Education Loan Processing Fee
|Avanse Education Loan Processing Fee||1-2% of the loan amount.|
Avanse Education Loan Margin
|Loan Margin for Avanse Education Loan||0%|
Before processing the student loan, education loan lenders will assess the student’s ability. Having an excellent academic record and a high entrance exam score will therefore improve your odds of receiving a student loan. Every financier will use different factors to assess your employability potential. Here are some common factors to consider when applying for an education loan.
- Student’s past academic performance
- Entrance test scores
- Pedigree of university/institute and courses
- Continuity in studies
- Educational institutions
- Chosen study abroad destination (for overseas students) and more
An unsecured education loan from Avanse has no loan margin. NBFCs like Avanse claim to have this edge. If you accept a loan from a private or state bank, you will be expected to pay roughly 10-15% of the money you require with each disbursement.
Avanse Financial Services Ltd is a Company registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC).
The student taking the education loan must be 18 years and above.
The student must be an Indian citizen.
There must be confirmed admission of the student to a recognized university.
The education loan has to be co-signed by a co-applicant earning in India.
Thus, we hope you are all set to apply for Avanse Education Loan with the information provided above. Still, confused about the best education loan for pursuing higher studies overseas? Our Leverage Edu experts are here to help you find the best scholarship or education loan as per your interests and preferences! Sign up for a free session with us to get all your queries answered!