Education Loan

Avanse Education Loan: Types, Features and Other Details

15 Nov 2019 12 min read
Education Loan: Avanse Education Loan: Types, Features and Other Details

Education is the key to success, but many people are not able to fulfil their dreams and get the education that they desire. This becomes even graver when it comes to studying abroad as it becomes even more challenging to fetch funds and make necessary arrangements. However, with the surge of education loans, the task has become even accessible. Many lenders provide education loan at attractive interest rates. Avanse education loan is one such option that you must try for while you are looking for an education loan.

Types of Avanse Education Loan

Avanse has helped students aspiring to study abroad and fulfill their dreams. The company provides education loan to students who wish to pursue their education in across 45+ nations of the world, some of the prominent names include UK, USA, Australia, Germany, etc.

Apart from providing education loan to the students, it also funds education institutions so that they can render superior and excellent educational support to their students. It financed around 300 institutes which have eventually helped 7 lakh students get a world-class hands-on education.

Types of Avanse Education Loan

Avanse Education Loans

Study in India Education Loan

Study Abroad Education Loan

Executive Education Loan

Student Loan Refinancing

How can One Use Avanse Education Loan?

If you want to study abroad or are looking for financing your education, then Avanse gives you the right platform. Here you can get a loan for various educational needs.

  • One can use the loan amount to purchase books, uniforms, laptops
  • Travel expenses for studying abroad
  • Examination fees, administration fees

Avanse Education Loan Features

Avanse education loan comes with various features like:

  • There is no limit on the education loan
  • 100% coverage
  • Customized solutions

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Eligibility Criteria for Avanse Education Loan

For Students (Borrower)

  • The applicant should be 18 years old and above
  • The applicant must have confirmed admission in the institute before loan disbursement
  • There must be a co-borrower in India who will co-sign the loan

For Co-borrowers

  • The co-borrower must be an Indian resident
  • They must have a bank account in an Indian bank
  • The co-borrower would be the primary debtor

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What are the different courses for which you can get education loan from Avanse?

Avanse gives education loan to the students who are planning to pursue an education in the following domain:

  • Graduation, post-graduation, diploma, professional degree from colleges and universities approved by UGC/IMC/AICTE/, etc.
  • A technical and professional course such as medicine, management, aviation, law, engineering, etc.
  • Degree and diploma courses offered by institutes like IIT, IIM, and other professional institutions
  • Vocational training, executive MBAs or other executive programs, that are approved by Avanse Financial Services Ltd.

Documents Required for Avanse Education Loan

An applicant has to furnish the following documents for the education loan-

  • KYC of the student
  • Education documents
  • Co-borrowers KYC and income proof
  • Collateral documents
  • Course and fee details

What are the different types of education loan provided by Avanse?

Study Abroad Education Loan

If you are looking forward to studying abroad, then you can opt for study abroad education loan. This loan helps you manage all the expense for foreign education. There are various sub-categories of this loan:

1. Pre-Visa Disbursement Loan - If you have confirmed admission or you are I-20 (USA) then with the help of this loan you can secure your visa. The amount gets disbursed in your account, and you can use this amount as proof of funds during the visa interview.

2. Bridge Loan - Avanse provides a loan to cover all education expenses related to GRE/GMAT/SAT fees, cost of application, living expenses abroad, miscellaneous charges, etc.

3. Score-based Loan - Avanse offers special loan to a meritorious student who wishes to pursue an education in science stream in the USA. Students who have a GRE score of more than 300 are eligible for this loan.

4. Pre-admission Loan- This loan by Avanse helps students get the loan amount to secure their admission.

5. Fast-track Loan - As the name indicates, this loan has faster processing and approval and works best for students seeking admission abroad.

6. Certificate of Availability of Funds - This certificate showcases that you have adequate funds to pursue courses elsewhere.

Eligibility Criteria

  • The applicant must be 18 years and above
  • He/she must have confirmed admission in the institute of their choice
  • The student must have an earning co-borrower in India

Eligibility for Co-borrower

  • The co-borrower must be an Indian resident
  • He/she must have an Indian bank account
  • The co-borrower must be the primary debtor

Avanse Education Loan Interest Rate

Avanse education loan interest rate is calculated based on the following formula:

Avanse Base Rate (12.65%) + Spread (decided by analysis of overall credit and course profiling)

The effective rate of interest lies between 10% and 16.50%. However, it may vary from one case to another. The primary concern while deciding the Avanse education loan interest rate is whether the loan application is secured or unsecured. Unsecured loans are approved at a relatively higher rate of interest whereas the secured loan comes at a relatively lower rate of interest.

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What are the various courses for which you can take Avanse education loan?

Avanse offers you education loan to the students who wish to pursue:

  • Graduation, post-graduation from a university approved by AICTE, IMC, UGC, and Government
  • Degree and diploma courses
  • Professional courses
  • Vocational training programs and executive programs
  • Courses offered in India by reputed foreign universities

Documents Required:

  • KYC of the applicant
  • Educational certificates
  • Course and fee details
  • Co-borrower KYC like address proof, ID proof, utility bills, Form 16, Income proof, bank statement
  • Collateral documents

What is the loan amount that Avanse offers?

One can get a minimum loan of Rs. 1 lakh. Avanse offers education loan which covers 100% cost of education thereby making education easy and hassle-free.

What all does Avanse education loan covers?

Avanse aims at providing a loan that can make studying aboard a hassle-free affair. The loan amount covers almost all the charges right from the living expense to tuition fees. You can use this amount to buy books, laptops and other educational aids. Additionally, it also guarantees the traveling expense of Rs. 75,000/- for students.

Collateral/Security

Avanse demands for collateral which includes the following:

  • Residential property
  • FD with DHFL
  • Life insurance with surrender value which is equal to the required security coverage
  • Existing house mortgaged with DHFL can also be used as security
  • Non-agricultural land

Avanse Education Loan Disbursement

After a successful assessment of loan application, the loan is approved, and the amount is disbursed in Indian Rupees in the account.

Tuition fees and hostel fees are directly sent to the respective institutes in installments. The applicant has to submit the course and fees detail so that Avanse can disburse the amount accordingly.

Processing Fees - The processing fees range between 1-2% of the loan amount.

Services & Charges

Type of Charges

Charges and Fees

Pre-Payment charges

No pre-payment during the first six months of the loan disbursement

late payment of PMII / EMI

2% per month

Cheque/ECS Swap charges:

Rs 500/+GST

Cheque/ECS Bounce charges:

Rs 400/+ GST

Document handling charges (At the time of foreclosure)

Rs 1500/- + plus applicable GST

Avanse Education Loan Repayment

Minimum tenure: 12 months

Maximum tenure: 120 months (including course duration) 

There is a grace period of 6 months after the completion of the course and 3 months after getting the job.

Executive Education Loan

If you wish to pole-vault in your career, it becomes imperative that you must choose a vocation or other executive courses that could give your job the much-needed boost. These courses come at a higher price, and Avanse offers you the loan to manage the fees of these courses.

Eligibility Criteria-

  • The prospective applicant must be 18 years and above
  • There must be a co-borrower who needs to have an Indian bank account and must an Indian resident
  • The student must have confirmed admission
  • The co-borrower must be the primary debtor

What are the various courses for which you can take Avanse education loan?

You can get this loan if you wish to pursue executive programs from reputed institutes or professional courses offered by reputed foreign institutes.

The institute and the course applied for should be in the approved list of international course and institute by Avanse as well for the loan application to be accepted.

Documents Required:

  • KYC of the applicant and educational documents
  • Course and fee details
  • Co-borrower KYC
  • Collateral documents

What is the loan amount that Avanse offers?

The minimum loan amount is Rs. 1 lakh and this loan cover the 100% cost of your education which includes living expenses, tuition fees and covers the cost of education accessories like books, laptops, etc.

What all things are covered in the loan?

Following aspects are covered in the Avanse Executive Education Loan programme:

  • 100% tuition fee as proposed by the University or the institution
  • Living expenses of up to 75% of the total living cost which should not be more than 20% of the full tuition fee
  • Additional fee charged by the institution such as caution deposit, building & development fund, refundable security deposit, etc. not exceeding a total of 10% of the total tuition fee.
  • Travel expenses of up to Rs. 75,000 for traveling abroad for studies

Interest Rate-

Avanse offers interest rate- Avanse Base Rate (12.65%) + Spread (decided by analysis of overall credit and course profiling)

Security

Avanse asks you for collateral which includes the following:

  1. Residential property
  2. FD with DHFL
  3. Life insurance with surrender value which is equal to the required security coverage
  4. Existing house mortgage with DHFL can also be used as security/
  5. Non-agricultural land.

Loan Disbursement-

Avanse sends across the loan amount directly to borrower’s account in Indian rupees. If required, Avanse also sends the installments to the Forex account. The hostel fees get directly transferred to the Institute on the due date; for this, the applicant is required to submit the details of the course.

Processing Fees- The processing fees range between 1-2% of the loan amount.

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Services & Charges

Type of Charges

Charges and Fees

Pre-Payment charges

No pre-payment during the first six months of the loan disbursement

late payment of PMII / EMI

2% per month

Cheque/ECS Swap charges:

Rs 500/+GST

Cheque/ECS Bounce charges:

Rs 400/+ GST

Repayment

Minimum tenure: 12 months

Maximum tenure: 120 months (including course duration) 

There is a grace period of 6 months after the completion of the course and 3 months after getting the job.

Student Loan Refinancing- This is a good option for those students who are continuing their studies in India and abroad. Also, those who have completed their studies abroad can use the student refinance loan. The working professionals servicing an existing student loan can make use of this loan.

Co-Borrower:

The co-borrower should be an Indian national, NRI working in India with OCI card and Indian passport holders

Courses: Student loan refinancing works well for all those students who are continuing their education in India and abroad. They are continuing accredited and approved courses. The accreditation should be from UGC, AICTE, IMC or government body.

Loan Amount:

Minimum Loan Amount - Rs 2,00,000

Maximum Loan Amount - Rs 1,00,00,000

Collateral- House, flat, non-agricultural land, fixed deposit

School Fees Financing- Gone are the days when you could easily pay off the school fees. With the rising standards of education and the need to enroll children in a good school comes with the cost. Avanse helps you manage this cost with its school fees financing. This easy to apply loan gives you instant access to a loan amount of up to Rs. 3, 00,000 which you can easily pay back in EMIs. The loan application is relatively simple, and you can get instant approval on the same.

All you need to do is log in to the website, apply for school fees financing loan and submit the necessary details. Avanse will assess the application and approve the loan.

Advantages of school fees financing:

  1. Easy loan approval for an amount up to Rs. 3,00,000
  2. No paperwork
  3. Payback is easy EMIs of 3-6 months
  4. 0% interest in Avanse tied-up school
  5. Minimal processing fees of Rs. 999 only
  6. No-prepayment charges
  7. Instant approval

Loan Application Process-

Avanse offers hassle-free loan application and approval. You can apply for a loan even before you enroll for the course. The company first assesses your application and based on it; it approves the loan. An important point to note about the education loan from Avanse is that you must pursue a course from an accredited and certified institute.

How to apply for Avanse Education Loan?

You can apply for an education loan:

  1. Online
  2. One can write to them at response#avanse.com

Key points to note while applying for education loan:

  1. Assess how much loan you need
  2. Cross-check all the documents
  3. Identify the co-applicant
  4. Finalize the course for which you want to apply
  5. Admission confirmation letter, course, and fee details
  6. Passport size photographs
  7. KYC documents like address proof, for co-borrowers, the KYC documents include address proof, identity proof, income proof, Form 16.

After the submission of all the documents, Avanse assesses the form, and when the loan is approved, the applicant is intimated via Loan Offer Letter which mentions all the details about the amount of loan and additional documents, if required. You can use this letter as proof of funds during the visa interview.

Avanse disburses the education loan amount via:

  • DD or Demand Draft
  • Cheque
  • Directly transfer to the designated bank account

Avanse Education Loan FAQs

1.    What is the age limit for Avanse education loan?

The applicant must be 18 years of age and above.

2.    Who can be a co-applicant?

The co-applicant must be an Indian citizen, and he/she must have an Indian bank account.

3.    When can one apply for education loan from Avanse?

Any student who is willing to study abroad can apply for a loan from Avanse. However, the loan only gets approved when Avanse receives the confirmation letter.

4.    What is pre-approved loan or PAL?

Avanse offers this feature to the students who wish to study abroad. The loan amount can be used by the student as proof of funds to assist them in easy visa approval and enrolment.

5.    How much loan amount is offered by Avanse?

Students who are willing to study in India or abroad can apply for education loan from Avanse.

  • The minimum loan for studying in India is Rs. 50,000/
  • The minimum loan amount for a student planning to study abroad is Rs. 1,00,000/

6.    If the loan application gets rejected, can a student reapply for the loan?

Yes, the applicant can reapply for the loan, but he must have all the documents ready and follow the eligibility parameters specified by Avanse.

7.    Does Avanse fund part-time education?

Avanse renders financial assistance to all the students who wish to pursue their education. Yes, the company approves the loan for part-time education, but the course must be offered by recognized, accredited and reputed institute.

8.    Does the loan amount cover the travel expenses?

Avanse offers 100% coverage under its education loan scheme. This covers tuition fees, hostel fees, and living expenses. As far as travel expenses are concerned, then Avanse covers the traveling expense of Rs. 75,000.

9.    What are various documents required for loan approval?

For hassle-free loan application and approval, the student must submit the following documents:

  • KYC documents- address proof, identity proof
  • Course details
  • Fees details
  • KYC of co-applicant – Address proof, Identity proof, Form 16, Income Proof and bank statement
  • Admission confirmation letter

10.    What is the repayment period?

Avanse offers easy repayment option. The tenure of repayment is as follows:

  • Minimum tenure- 12 months
  • Maximum tenure- 120 months

Avanse is a renowned name in the world of education loans. The company has been rendering loans to assist students aspiring to study abroad. Being a part of the WGC group, a financial service conglomerate, it has held in lending, insurance, and asset management domain. Avanse is an associate company of DHFL.  The company is based out of Mumbai. IFC or International Finance Corporation also holds a 20% equity stake in Avanse. IFC is a wing of World Bank.

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Snippets on Education Loan news – March 2019

17-03-2019: Tamil Nadu is witnessing poll promises to waive education loans

As political parties are fighting it out to get an upper hand in wooing voters, both AIADMK and DMK has promised to waive educations loans, should they (or their allies) come to power. This is not a surprise if we consider that Tamil Nadu has the maximum concentration of education loan users in the country. Tamil Nadu also has a high percentage of bad loans or non-performing assets (NPAs) in the education sector.

12-03-2019: Avail a hassle-free education loan through the Government’s Vidyalakshmi website

Through www.vidyalakshmi.com, the Government-run portal, Indian students can now search, apply and track their education loan applications to lenders anytime, anywhere. It also provides useful links to the Govt. Scholarship Portal. This web-platform has been designed and maintained by the e-Governance Infrastructure of the National Securities Depository (NSDL).

10-03-2019: The percentage of NPAs (Non-Performing Assets) of Public Sector Banks in the education loan segment has been on the rise.

According to recent reports from the Indian Banks’ Association (IBA), NPAs of the Public Sector Banks in the education loan segment has gone up to 8.9% on 31st March 2018 from 7.2% as on 31st March 2016. This was stated by Mr. Shiv Pratap Shukla, the Minister of State for finance in response to a query in Lok Sabha last month.  The minister said that the figure stood at 5.7% as on 31t March 2015.

05-03-2019: PNB unveils new education loan schemes

The Punjab National Loan, one of the most popular education loan providers in India has come up with new education loan offers for students looking to pursue their higher studies abroad at highly competitive interest rates ranging from 8.95 % to 11.10 %. Loans from Rs 4 lakh to Rs 7 lakh are offered at the rate of 10.50 % and those above Rs 7 lakhs are offered at the rate of 11.10 % per annum.

02-03-2019: SBI has categorized loans worth 380 crores in default: 90 % of these are education loans.

The State Bank of India (SBI), the premier loan financier of India has recently put loans worth Rs 380 Crore in default. 90 % of these account for education loans. The defaulters will soon be hearing from recovery agents and these may even be sold at a discount to bidders who will be provided authority to recover the money from defaulters. SBI has already invited bids from asset reconstruction companies and other lenders who specialize in recovering bad loans.