Avanse Education Loan

The rate of interest on Avanse Education Loan is charged as a spread over their Base Rate. Currently, the interest rate is-

Loan Amount	Rate of Interest
Above ₹ 1 Lakh	12.65% + Spread

Please note that the rate of interest on education loan is floating in nature which means the interest rates are subject to change as per market conditions. Simple Interest calculation is done with monthly rest.

The table given below shows the fees and charges related to Avanse Education Loan-

Nature of Charges	Amount
Loan Processing Fee	Up to 2% of the loan
Cheque/ECS Bounce Charges	400 per bounce
Interest on Late Payment of EMI	2% per month on the overdue EMI
PDC/NACH/ECS/DD Swap Charges	500 per Swap
Collection Pickup Charges	500 per Visit
Document Retrieval or Handling Charges at the time of Foreclosure	1,500
Copy of Property/Security Papers	500
Additional Repayment Schedule	Nil
Full Pre-Payment/Foreclosure charges	Nil (No pre-payment allowed in the first 6 months)
Part Pre-Payment charges	Nil (No pre-payment allowed in the first 6 months)

Note: GST and other statutory levies will be applicable on the above charges.

By offering easy accessibility to education loans, Avanse helps students in making their dreams come true without depleting their parent’s savings. Whether you wish to study in India or in a foreign country, they have got you covered. Given below are a few features and benefits of Avanse Education Loan to help you understand why it is a better choice for the students as well as parents.

1. Total Coverage- Avanse covers up to 100% of the cost of your education which means the margin money can be zero. The cost includes course fee plus the living expenses during the study period.
2. Competitive Interest Rates- Avanse offers competitive interest rate to the borrowers so that they can pursue their dreams without having to pay too much.
3. Finance for Non-Traditional Courses- Not just engineering, medical and management degrees, Avanse also provides financial help in case a student wishes to seek a non-traditional course such as photography or film-making.
4. Credible Source- Avanse is a registered NBFC regulated by RBI. A part of the renowned home finance company DHFL, Avanse brings a great lineage with it. Parents can be assured that the funding is coming from a secured source. International Finance Corporation (IFC) which is an arm of the World Bank holds 20% stake in the company, thus adding to its credibility.
5. Easily Accessible- The application process of Avanse is user-friendly and convenient. Once you fill out the form online, a representative will give you a call back and pay a visit at your home. He will guide you through the entire application process with complete details and transparency.
6. Customized Solutions- Every student does not have the same aspiration. Keeping this in mind, Avanse has created tailor-made financial solutions to cater different types of customer needs. Flexibility in loan structuring is one of the best advantages of Avanse.
7. Student Support- Avanse believes that no student should have to give up on their dreams of pursuing a particular course because of lack of funds. Their aim is to provide complete student support.
8. Credit Awareness- In addition to offering the fund for education, Avanse also instills a sense of financial responsibility in the students. The counselors/representatives of Avanse explain the concept of credit score to the students and help them understand why they need to maintain a good credit score.

Focusing at the needs of different types of customers, Avanse offers the following types of education loans:

1. Study in India Loans

This type of loan is offered for funding an education in India. Avanse covers most of the traditional and non-traditional courses in India including engineering, medical, hotel management, culinary, aviation, media studies, arts, etc. The company serves 183 locations in India and has an aim of being accessible to every aspiring student. Avanse offers up to 100% education finance to the students with no margin money and no cap on the maximum loan amount. Important aspects of this loan are:

Minimum Age of the Applicant	18 years
Minimum Loan Amount	₹ 1 Lakh
Margin	Nil
Loan Coverage	100% of tuition fee and up to 75% of the living cost but not exceeding 20% of tuition fee.
Interest Rate	12.65% + Spread
Disbursal	Directly to the institute in Indian Rupee.
Minimum Repayment Tenure	12 months
Maximum Repayment Tenure	120 months (including course duration)
Moratorium Period	6 months after course completion or 3 months after getting a job
Processing Fee	1-2% of the loan amount

*Other applicable fees and charges plus taxes will also be levied.

2. Study Abroad Education Loan

Avanse provides financial assistance to students who wish to pursue higher studies in a foreign country. The application process is hassle-free and ensures constructive and positive abroad studies. With Avanse, you can opt for the following-

• Pre-Visa Disbursement Loan- If you have already secured admission in a foreign university or recognized college, this loan can be taken to secure your visa. The amount is disbursed into the applicant’s bank account which works as the proof of fund availability for studies abroad.
• Bridge Loan- This loan does not only cover the actual course fee but also provides financial assistance for Exam Prep Classes, entrance exam fee of GRE/MAT/SAT, application cost, cost of books and other expenses.
• Score-based Benefits- This benefit is especially provided to meritorious students and it may come in the form of preferential interest rates and/or easier terms and conditions.
• Pre-admission Loan- This loan helps you secure a confirmation of admission to a foreign university. It works as proof of funds.
• Fast-Track Loan- This is an Express Loan and helps you speed up the process of your admission in a foreign college or university.
• Certificate of Availability of Funds- This applies to studies in the USA and demonstrates that the student has adequate funds to cover the cost of education and the cost of living in a foreign country.

Given below are some important aspects of this loan:

Minimum Age of the Applicant	18 years
Minimum Loan Amount	₹ 1 Lakh
Maximum Loan Amount	No Limit
Margin	Nil
Loan Coverage	100% of tuition fee 75% of the living cost but not exceeding 20% of tuition fee Travel Expenses up to ₹ 75,000 Caution Deposit not exceeding 20% of the total tuition fee
Interest Rate	12.65% + Spread*
Disbursal	Tuition and hostel fee is directly disbursed to the institute in Indian Rupee; loan amount related to other expenses is directly disbursed into the co-borrower’s account.
Minimum Repayment Tenure	12 months
Maximum Repayment Tenure	120 months (including course duration)
Moratorium Period	6 months after course completion or 3 months after getting a job
Processing Fee	1-2% of the loan amount*

*Interest Rate and Processing Fee may vary on case-to-case basis.

3. Executive Education Loan

This type of education loan is especially made to finance career development studies such as post-graduate programs, management courses, specialist courses, vocational and professional upgrade. Avanse believes that there is no age for pursuing an education and hence it offers Executive Education Loan with the following features:

Minimum Age of the Applicant	18 years
Minimum Loan Amount	₹ 1 Lakh
Maximum Loan Amount	No Limit
Margin	Nil
Loan Coverage	100% of tuition fee 75% of the living cost but not exceeding 20% of tuition fee Travel Expenses up to ₹ 75,000 (studying abroad) Caution Deposit not exceeding 20% of the total tuition fee
Interest Rate	12.65% + Spread*
Disbursal	Tuition and hostel fee is directly disbursed to the institute in Indian Rupee; loan amount related to other expenses is directly disbursed into the co-borrower’s account.
Minimum Repayment Tenure	12 months
Maximum Repayment Tenure	120 months (including course duration)
Moratorium/Grace Period	6 months after course completion or 3 months after getting a job
Processing Fee	1-2% of the loan amount*

*Interest Rate and Processing Fee may vary on case-to-case basis.

4. School Fee Financing

You can now take an education loan to finance a better schooling for your kids and pay back in easy EMIs. This facility is offered by Avanse in partnership with EarlySalary. The best part of this credit facility is that it is interest-free if you take loan for studies in an Avanse Partner School. Below mentioned are a few benefits of this education loan:

• School Fee Loans up to ₹ 3 Lakh can be availed.
• Loan can be repaid in 3 month and 6 month EMIs.
• No paper work is required; it is a fully-online procedure.
• Processing fee of ₹ 999 will be charged.
• There are no pre-payment charges on this loan.

Applicants can download the EarlySalary Mobile App, login and share some basic details to get instant loan approvals.

5. Student Loan Refinancing

Avanse also provides the option to transfer your outstanding education loan balance and save on interest and enjoy better terms and conditions. With Avanse Education Loan Refinancing, you can enjoy the following features:

• Lower EMI outgo per month.
• Lower interest rate (up to 100 basis points).
• Zero processing charges.
• Flexible repayment tenure.
• Repayment through foreign remittances is also allowed.
• Hassle-free application process and doorstep assistance.
• You can also get it as a top-up on your existing loan.

Whether you will be approved for an Avanse Education Loan is at the discretion of the organization itself. However, given below are a few important eligibility norms to keep in mind before applying:

Eligibility Criteria for Students

• Students seeking admission should be at least 18 years old.
• They should have confirmed admission in the institute before loan disbursal.
• The student loan needs to be co-applied with an earning co-borrower.

Eligibility Criteria for Co-borrowers

• The co-borrower can be a parent, sibling or a legal guardian of the student.
• He/she should have a bank account in India.
• The co-borrower is the primary debtor in case of education loan.

Eligible Courses

Avanse Education Loan can be taken for pursuing the following courses:

• Graduation/Post Graduation/Diploma/Professional Degree conducted by universities/colleges approved by AICTE/UGC/IMC/Govt. etc.
• Courses offered by Autonomous Institutions like IITs and IIMs.
• Courses offered by Reputed Foreign Universities.
• Technical/professional courses like engineering, medicine, law, etc.
• Vocational training or executive programs approved by Avanse Financial Services.
• Graduation/ Post-graduation for job oriented professional/ technical courses offered by reputed universities outside India.

In order to make successful application for Avanse Education Loan, you are required to submit the following documents:

• Complete KYC Documents of Student and Co-borrower.
• Income Documents of the co-borrower.
• Course and Fee Details.
• Collateral Documents, if pledging collateral for the loan.

Given below are a few documents that are accepted as Identity Proof, Residence Proof and Income Proof.

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc.
Income Proof	Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16, etc.

Applicants can visit Paisabazaar.com to apply for Avanse Education Loan. Follow the steps given below-

• Visit Education Loan Section on Paisabazaar.com
• Answer a few basic questions such as where you plan to study, how much you would like to borrow, etc.
• Enter your name as per your PAN Card, Gender, Date of Birth, Email ID and Mobile Number.
• Select who you would like to be your co-borrower.
• Enter the employment type of the co-borrower.
• You will now be asked to enter the net monthly income of the co-borrower.
• After you have completed all these steps, tick the box for terms and conditions and click on ‘See Offers’.

You can now see Avanse Education Loan in the options. The page would also show a tentative EMI amount as per the loan amount you would like to borrow. If you are satisfied with the interest rates and other terms, you can click on ‘Apply Now’. Your application is now accepted and will be processed further by Paisabazaar’s Education Loan Department.

Alternately, you can apply for education loan directly from Avanse Official Website.

You can calculate education loan EMI on Paisabazaar.com using our Education Loan EMI Calculator. This online tool is very simple to use.

Step 1: Enter the principal amount for education loan that you wish to borrow from the lender.

Step 2: In the next section, you need to input the interest rate that has been offered to you for the education loan.

Step 3: In the last section, you will have to enter the loan tenure that you would like to opt for.

On the right side of the screen, you should be able to see the education loan EMI that you are liable to pay with the given combination of loan principal, tenure, and rate of interest. The EMI will of course vary as you tend to change the contributing factors of the education loan EMI calculator. You can easily change these values to arrive at an EMI that suits your budget.

1- Is Avanse a registered lender of education loan?
Yes Avanse is registered as a Non-Banking Financial Company (NBFC) and is regulated by the Reserve Bank of India.

2- Who can apply for Avanse Education Loan?
Students who wish to pursue higher studies in India or abroad can apply for education loan from Avanse. The applicant should be at least 18 years old and must have an income earning co-signer for the loan.

3- Is any collateral required for Avanse Education Loan?
Usually, there is no need for collateral in education loans up to ₹ 4 Lakh. Loans from ₹ 4 Lakh to 7.5 Lakh require a guarantor. For loans above ₹ 7.5 Lakh, you may be required to submit a collateral security.

4- How much of the education cost will be funded by Avanse?
Avanse is ready to fund up to 100% of the cost of education but it varied on case-to-case basis.

5- How is the education loan amount disbursed by Avanse?
The tuition fee is paid directly to the institution. Loan amount towards other expenses may be transferred to the co-borrowers account. In special cases of studies abroad, the amount may also be disbursed to a third-party FOREX vendor.

6- In case of studies in a foreign country, how much of the living cost is financed by Avanse?
Avanse finances up to 75% of the living expenses but not exceeding 20% of the tuition fee.

7- Does Avanse cover travel expenses for education?
Yes, Avanse also covers travel expenses but only up to ₹ 75,000.

8- What is the processing fee on Avanse Education Loan?
The processing fee may range from 1-2% of the education loan amount.

9- What is the meaning of moratorium period? How long is the moratorium period in case of Avanse Education Loan?
Moratorium period, also known as grace period, is a type of EMI holiday given to the student before he/she starts earning. No repayment is required during the moratorium period. Avanse offers a 6 month moratorium period after course completion or 3 month after starting a job.

10- Can a student build his/her credit score with the help of education loan?
Yes. Education Loan helps a student in building his credit score. In fact, Avanse educates students about the importance of credit score and how to build the same.