Avanse is an associate company of Dewan Housing Financing Limited (DHFL) & they particularly provide education loans to Indian students. The company offers financial support to students who wish to pursue higher education in India & abroad. Being a Non-Banking Finance Company (NBFC) regulated by RBI, Avanse has an alliance with more than 400 educational institutions across the world. It is a private financial institution specializing in the niche space of education. Their mother company, DHFL, is one of India’s leading housing finance companies in the private sector, having helped thousands of Indians to fulfill their dreams of owning a home. The Company provides funds to students traveling to all internationally known & advanced education destinations including the UK, US, Australia, etc.
With the cost of education nowadays shooting up, a number of students pursuing higher education abroad are considering education loans as a crucial option to fund their studies. Although there are many banks which offer education loan to students, there are also financial service companies like Avanse, which provide customized education loans to students through an easier & faster process.
Being a new age education finance institution, Avanse not only funds regular, conventional courses that Indian students have traditionally pursued but it also extends education finance to new and upcoming courses, including fine arts, music, sports management, photography, film making as well as certification courses and diplomas. Avanse has launched finance programs for K-12 education and loan options to fund prep-courses for entrance exams, etc. The company also funds the students traveling to all key international advanced education destinations in the US, UK, Australia, etc. Moreover, Avanse provides assistance to executive education & financial support to working professionals who want to pursue a higher order education. Avanse funds graduation or Post-graduation for job oriented professional/technical courses offered by reputed universities outside India as well as courses and universities approved by Avanse for education financing.
What Is an Education Loan?
An Education loan is the advance or funds acquired by a student to pursue higher studies in India or abroad. The repayment of the loan commences for the candidate after completing the education and a period of 6 months or 1 year which is given as grace period for students to get a job.
The repayment amount to be paid depends upon you. That is if you want to start paying during the time of the moratorium period itself or after the moratorium period.
The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
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Features & Benefits
|Objective||To grant term loan to Indian students for pursuing higher education in India and foreign colleges & universities.|
|Quantum of Advance||Minimum of Rs. 1 Lakh and no cap on the upper limit.|
|Margin||No margin needed.|
|Repayment Period||The tenure will be up to 10 years after completion of the course with 6 months of moratorium period or after 3 months of starting the job.|
|Security||It is determined by the quantum of the advance & creditworthiness of the borrower.|
|Processing Fees||The processing fees range from 1% to 2% of the loan amount.|
- Graduation, post-graduation and professional degree/diploma courses conducted by colleges/universities approved by UGC/AICTE/IMC/Govt. etc.
- Technical/professional courses like engineering, medicine, law, management, aviation etc.
- Degree/diploma courses offered by sovereign institutions like IIMs, IITs etc and approved by Avanse Financial Services.
- Courses offered in India by reputed foreign universities.
- Vocational training, executive programs and other courses that have been approved by Avanse Financial Services Ltd.
- Graduation/ Post-graduation for job oriented technical/professional courses offered by reputed universities outside India as well as courses and universities approved by Avanse for education financing.
- 100% tuition fee as determined by the institute or university.
- Living expenses together with the purchase of books, laptops & other expenses essential to complete the course (up to 75 percent of the total living cost, although not exceeding 20% of the total tuition fee).
- Caution deposit/building fund/refundable deposit, supported by Institution bills/receipts but should not exceed 10% of the total tuition fee.
- Travel expenses/passage money up to Rs. 75000 for students traveling abroad.
Benefits of Avanse education loan
Following are some of the advantages of applying for an educational loan with Avanse:-
- Low rate of interest.
- Less paperwork.
- Customized education loans & flexible repayment plans
- Quick approval process & Faster Disbursal
- Hassle-free loans & 100% education finance
- The principal amount can be paid after the completion of the course.
- Doorstep services are offered.
- Avail finance based on your score.
- No margin money required.
- Flexible co-applicant & collateral requirements
- Multi-city servicing through a single window
- Finance is offered during the pre-admission and pre-visa period.
At Avanse, to be eligible for a loan, the following criteria must be met:
Who Can Apply?
- Must be an Indian Resident
- Applicant should have secured admission with the educational institution
- Should be 18 years old and above
- The loan must be co-signed by an earning co-borrower
ELIGIBILITY FOR STUDENTS
- The student taking the study abroad loan should be an Indian citizen and 18 years old or above
- There must be confirmed admission to the institution before the final disbursement of the education loan
- The study abroad loan must be co-signed by an earning co-borrower in India.
ELIGIBILITY FOR CO-BORROWERS
- The co-borrower of abroad studies loan must be an Indian citizen and could be a parent, sibling, legal guardian, or any other relative.
- They must have an account in any bank with cheque writing facilities
- The co-borrower would essentially be a joint debtor.
Student loan eligibility in India varies from person to person based on monthly obligations and monthly income. If you are wondering about the amount you will get an education loan, there is an education loan EMI calculator for you. This calculator is designed keeping in mind the Student loan eligibility in India, so that you know the maximum amount you can get, before applying for the loan.
- Letter of admission
- Filled in Loan Application Form
- 2 passport size photographs
- Statement of cost of study
- PAN Card of the student and Parent/ Guardian
- AADHAR Card of the student and Parent/ Guardian
- Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
- Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
- Student/Co-borrower/ guarantor's bank statement for last 6 months
- IT return/ IT assessment order of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
- Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
- Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower
Avanse education loan interest rates as in July 2018
|Loan Amount||Courses in India||Courses Abroad|
|Max Loan Amount||Rs. 50 Lakh||Rs. 50 Lakh|
|Loans upto Rs. 4 lakh||11.50 % Base Rate +Spread||11.50 % BaseRate + Spread|
|Loans Rs. 4.0 - 7.5 lakh||11.50 % Base Rate + Spread||0.00 % Base Rate + Spread|
|Loans > Rs. 7.5 lakh||11.50 % Base Rate + Spread||11.50 % Base Rate + Spread|
Max Tenure Post Moratorium
|Loans up to Rs. 7.5 lakh||10 years||10 years|
|Loans above Rs. 7.5 lakh||10 years||10 years|
|Co-Applicant required (Y/N)||Yes||Yes|
Third Party Guarantee
|Loans up to Rs. 4 lakh||Not required||Not required|
|Loans Rs. 4.0 - 7.5 lakh||Required||Required|
|Loans > Rs. 7.5 lakh||Not required||Not required|
Collateral Security (Fixed deposit/ Property, LIC)
|Loans up to Rs. 4 lakh||Required||Required|
|Loans Rs. 4.0 - 7.5 lakh||Required||Required|
|Loans > Rs. 7.5 lakh||Required||Required|
|Prepayment Charges (Y/N)||2||2|
Moratorium Period (lower of the two)
|After the course period||6 months||6 months|
|After getting a job||3 months||3 months|
Special Note: Rates are subject to periodic changes & may vary from bank to bank or any other financial institution or NBFC. The main components which are the deciding factors when it comes to the rate of interest for education loans in India are whether the loan provided is secured or unsecured. Unsecured loans have a higher interest rate as; however, secured loans have a lower rate of interest.
Query-Who can apply for an Education Loan from Avanse?
Reply-The applicant can apply for an Avanse Education Loan if he/she is:
- An Indian Citizen
- The student above Secondary School Certificate
- Applicant must have confirmed admission at the institution before the final disbursement of the loan.
- Other factors considered in the assessment are a good academic record, recognition granted to the institution (rating) the student has opted for to pursue his higher education in and regular source of income of the parents.
Query-When can the applicant apply for an education loan from Avanse?
Reply-The applicant can apply anytime for an Avanse Education loan; the disbursement of the loan, however, is done once Avanse receives the admission confirmation from the Institute for the course he/she wishes to pursue. Avanse also offers Pre-Admission Loans in case the student has applied or is awaiting confirmation of admission from the university.
Query-What do you mean by the Avanse pre-approved education loan? What is the benefit of taking one?
Reply-Avanse offers a Pre-approved Education Loan, based on the creditworthiness of the applicant/s (parents/ guardian/co-borrower/borrower). A student can use this to present as proof of funds while applying for admissions to different universities/institutes. In fact, with an Avanse Pre-approved Education Loan, an applicant can strengthen his/her case for admission, including the choice of course. It, therefore, makes sense to get a Pre-approval NOW, for a need that may occur later.
Query-How soon must the applicant apply for a loan to ensure that he or she gets the fees paid on time during his/her admission?
Reply-An Applicant should ideally start early. They should start the loan application process as soon as they know what college/institute/university they plan to attend the cost of the course/course fees for the current academic year and, if possible, provide proof of enrolment/admission confirmation. The applicant should allow himself 6 to 8 weeks from the time of the initial application until their school receives the funds.
Query-Can the applicant transfers his/her existing student loan to Avanse?
Reply-Yes, Avanse offers balance transfer facilities at competitive pricing.
Query-If the loan request has been rejected by Avanse once, can the applicant apply again?
Reply-Yes, the applicant can apply for an Avanse education loan once again. However, it is important that he/she fulfills all the documentation and compliance requirements before re-applying.
Query-If the applicant does not have a consistent record of the first class in academics but has secured admission with a reputed institute, will Avanse give him/her an education loan?
Reply-Yes, a good academic record is preferred as it shows the student’s level of commitment to his/her curriculum and career, thus giving us the confidence to finance his/her career aspirations. However, this is not the only parameter used to evaluate loan eligibility.
Query-Does Avanse fund for admission acquired through payment seats?
Reply-Yes, Avanse finances courses for admissions secured through payment seats/ management quotas.
Query-Does Avanse Education loan fund part-time, correspondence or online program?
Reply-Avanse focuses on enabling your future and hence they do fund aspirants pursuing higher education through part-time, correspondence or online programs. However, Avanse must recognize the course as per norms prescribed and regulated by the management at Avanse Education Loans.
Query-What are the costs covered by an Avanse Education Loan?
Reply-An Avanse education loan provides the maximum loan amount i.e. 100% of the cost of education. It covers the following expenses that arise in your higher education commitments:
- 100 % Tuition Fees as determined by the institute/university.
- Living expenses including books, computer, and project expenses, up to 75% of the total living cost. (Not exceeding 20% of the total tuition fees payable for the complete course).
- Traveling expenses up to Rs 75,000 for students traveling abroad.
- Insurance premium (In cases where the student takes insurance from Avanse preferred insurance provider).
- Caution deposit, building fund supported by Institution bills/receipts (not exceeding 10% of total tuition fees).
Query-What does margin amount mean and how much is it at Avanse?
Reply-Margin amount is the amount that the applicant pays through his own source as a down payment or his own contribution towards education. However, Avanse does not ask for margin money as their loans are designed to provide 100% funding of the cost of education.
Query-What is a holiday/moratorium period?
Reply-Holiday period or moratorium is the tenure, which commences from the disbursal of the loan to the time the borrower makes his/her first Equated Monthly Installment (EMI) payment. The repayment does not start during this period. A holiday period is a maximum time a student gets before he/she can start paying back the principal loan in the form of EMIs