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Avanse Education Loan

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Best Rate

11.5%

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Avanse Education Loans

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.

The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of 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.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

This way your loan amount at the time of graduation is drastically reduced.

There are 4 types of education loans in India

1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.

2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.

3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.

4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.

About Avanse

Avanse is an associate company of Dewan Housing Financing Limited (DHFL) specialised in providing education loans to Indian students. The company provides financial assistance to students who wish to purse higher education in India and abroad. Being a Non-Banking Finance Company (NBFC) regulated by RBI, Avanse have a collaboration with 400 educational institutions across the world.

An Introduction to Avanse Education Loans

Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Avanse understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with Avanse education loans.

Advantages of Avanse Education Loan

Following are some of the advantages of applying for an educational loan with Avanse.

  • Low interest rate
  • Less paperwork
  • Customized loans and flexible repayment plans
  • Faster Disbursal
  • Hassle-free and 100% education finance

Key Highlights

Eligibility CriteriaStudents 18 years old and above
Loan TenureUp to 10 years
Loan AmountNo cap
Interest RateBase Lending Rate 11.5%
Processing Fees1%-2% of the loan amount

Features of Avanse Education Loan for Studies in India

Objective: To provide term loan to Indian students for pursuing higher education in India

Quantum of Loan: Minimum of INR 1 Lakh and no cap on upper limit

Margin: No margin Required

Repayment Period: The tenure is up to 10 years after completing the course with 6 months of moratorium period or after 3 months of starting the job.

Security: It is determined by quantum of the loan and creditworthiness of the borrower.

Processing Fees: The processing fees ranges between 1% to 2% of the loan amount.

Courses Covered

  • 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 autonomous institutions like IIT, IIM etc and approved by Avanse Financial Services Ltd.
  • Courses offered in India by reputed foreign universities.
  • Vocational training, executive programs and other courses that have been approved by Avanse Financial Services Ltd.

Expenses Covered

  • 100% tuition fee as determined by the institute or university.
  • Living expenses including purchase of books, computers and other expenses essential to complete the course (up to 75% of total living cost, though not exceeding 20% of the total tuition fee).
  • Caution deposit/building fund/refundable deposit, supported by institution bills/receipts but not exceeding 10% of the total tuition fee.

Eligibility Criteria: 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

Interest Rate of Avanse Education Loan for Studies in India:

The interest rate is calculated as: Interest Rate= Avanse Base Rate + Spread

The base lending rate is 11.5% and the rate of interest is floating in nature.

Features of Avanse Education Loan for Studies Abroad

Objective: To provide term loan to Indian students for pursuing higher education in foreign universities and colleges

Quantum of Loan: Minimum of INR 1 Lakh and no cap on upper limit

Margin: No margin Required

Repayment Period: The tenure is up to 10 years after completing the course with 6 months of moratorium period or after 3 months of starting the job.

Security: It is determined by quantum of the loan and creditworthiness of the borrower.

Processing Fees: The processing fees ranges between 1% to 2% of the loan amount.

Courses Covered

Graduation/ 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.

Expenses Covered

  • 100% Tuition Fee as determined by the Institute or University
  • Living Expenses including purchase of Books, Computers and other expenses essential to complete the course (up to 75% of total living cost though not exceeding 20% of the total tuition fee)
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts but not exceeding 10% of the total tuition fee.
  • Travel expenses / passage money up to Rs. 75000/- for students travelling abroad.

Eligibility Criteria: 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

Interest Rate of Avanse Education Loan for Studies in Foreign Countries:

The interest rate is calculated as: Interest Rate= Avanse Base Rate + Spread

The base lending rate is 11.5% and the rate of interest is floating in nature.

Features of Avanse Executive Education Loan

Objective: To provide education loan to Indian students for pursuing professional courses in India and abroad

Quantum of Loan: Minimum of INR 1 Lakh and no cap on upper limit

Margin: No margin Required

Repayment Period: The tenure is up to 10 years after completing the course with 6 months of moratorium period or after 3 months of starting the job.

Security: It is determined by quantum of the loan and creditworthiness of the borrower.

Processing Fees: The processing fees ranges between 1% to 2% of the loan amount.

Courses Covered

Graduation/ 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.

Expenses Covered

  • 100% Tuition Fee as determined by the Institute or University
  • Living Expenses including purchase of Books, Computers and other expenses essential to complete the course (up to 75% of total living cost though not exceeding 20% of the total tuition fee)
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts but not exceeding 10% of the total tuition fee.
  • Travel expenses / passage money up to Rs. 75000/- for students travelling abroad.

Eligibility Criteria: 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

Interest Rate of Avanse Education Loan for Studies in Foreign Countries:

The interest rate is calculated as: Interest Rate= Avanse Base Rate + Spread

The base lending rate is 11.5% and the rate of interest is floating in nature.

Documents Required

  • 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 account 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

EMI Payment Methods

Avanse education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Avanse, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Avanse account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Avanse account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Avanse account at your nearest Avanse Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Avanse Education Loan?

You can either apply online or visit a nearby Avanse branch for the application. You can also download the education loan application form from the Avanse official website, complete the form and submit it the bank representative.

You can also check your eligibility for an education loan through CreditMantri and apply for it.

Avanse Education loan FAQ

1. What is the interest charged during moratorium period?

Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.

2. Can I take an education loan without a co-borrower?

No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.

3. I am planning to study abroad. Am I eligible to apply for an Education Loan?

Yes, Avanse offers up to INR 1.5 Crore for courses pursued abroad which also includes travel expenses and study tours.

4. Is there a processing fee for an education loan with Avanse?

Yes, the processing fee ranges between 1% to 2% of the loan amount.

5. Is there a way I can reduce the interest paid?

There is special subsidy provided according to Central Government subsidy for education loans. Avanse also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.

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