Avanse Education Loan for Studying Abroad: Interest Rates, Documents, and More

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Picture of Shivani Mani

Shivani Mani

Lead, Student Success - FundRight

Exploring options for studying abroad and thinking of getting an education loan? Avanse Education Loan just might be where your search ends. 

In this article, we’ll go over key aspects of the Avanse Education Loan, a deep dive into what it is, and how you can get it, with information on its interest rates, eligibility, and collateral requirements.

An introduction to Avanse 

Avanse Financial Services is a Non-Banking Financial Company (NBFC) regulated by the RBI. 

Avanse Financial Services is primarily owned by the following entities:

  • Warburg Pincus owns around 80% stake in Avanse Financial Services.
  • International Finance Corporation (IFC), the private sector arm of the World Bank Group, owns the remaining 20% stake in Avanse.

What is an Avanse Education loan?

Avanse Education Loan is a popular choice for students looking for financial assistance to study abroad.

One of the key attractions is Avance’s competitive education loan interest rates which make it a good option for Indian students. 

Additionally, Avanse education loan eligibility criteria are extremely flexible. This implies that a wide range of students can qualify for the loan. 

Also, Avanse education loans cover all major study-abroad destinations for Indian students. So, whichever country you’re planning to study in, Avanse has got you covered. 

Avanse education loan products are well-regarded for the smooth application process and quick approvals. 

No wonder that Avanse loans have made it easy for Indian students to obtain financing for their international education dreams. 

 

What are the interest rates of an Avanse Education Loan?

Here’s an overview of a typical education loan product from Avanse. We’ve also included the range in which interest rates are charged on Avanse student loans. 

 

Category Details
Interest Rate 10.5% p.a. to 16.5% p.a.
Processing Fee 1% to 2% of the loan amount (calculated on a case-by-case basis)
Pre-payment Charges Prepayment is not permitted within six months of disbursement
Cheque/ECS Bounce Charges ₹500 plus taxes per bounce
Late Payment Charges 2% per month
Document Handling Charges ₹2,000 plus taxes

 

Next, let’s find out how you can apply for an education loan from Avanse.

Estimate your budget using the Avanse Education Loan EMI calculator

Before you apply for an education loan with Avanse, estimate your monthly payments. 

Avanse offers a study loan EMI calculator that helps you do just that. By entering your desired loan amount, tenure, and expected Avanse Education Loan interest rate, you can quickly get an idea of your monthly payments.

The educational loan interest calculator is fast and easy to use. It allows you to try different combinations of loan amounts, tenures, and interest rates to find the best fit for you.

Here is a link to the EMI calculator.

What are the eligibility criteria to secure an Avanse education loan?

Avanse Education Loan eligibility criteria may vary for different people. However, the basic criteria are the same for everyone.

For students:

  • You must be an Indian citizen.
  • You must be at least 18 years old.
  • You must have a valid test score to prove that you’ll be able to secure admission in an international university 

  

Apart from the eligibility of the student, Avanse also requires the co-applicant to meet certain criteria. Co-applicants in this scenario can be parents, siblings, legal guardians, or relatives.

Co-applicant eligibility for Avanse Education Loan:

  • The co-applicant must also be an Indian citizen.
  • They should have a bank account in India with cheque-writing facilities.

Courses eligible for Avanse education loan

Avanse education loans are available for a wide range of courses, including graduation, post-graduation, and job-oriented professional/technical courses, both in India and abroad.

The list of eligible programs includes: 

  • Professional courses like engineering and management
  • Degree/Diploma courses offered by recognized institutions in India and abroad
  • Courses offered by reputed foreign universities in India
  • Vocational training and Executive programs

Step-by-step guide for the application process

To apply for an Avanse education loan for abroad studies, follow these simple steps:

  • Call Avanse Toll-Free at 1800-266-0200 or visit their website at www.avanse.com to begin the application process for an Avanse education loan.
  • Fill in the loan application form online or offline. You can skip this step and use FundRight instead, where you can compare your Avanse education loan offer with 14 other lenders. If you want to apply for the loan offered by Avanse, you can do that within the FundRight interface, by uploading your documents. 
  • Avanse also offers personalized loan counseling, either in person or via phone, to guide you through the process and address any queries (if you have any). You can opt for this service, if you so wish.
  • Collate all necessary documents required for the loan application. These include proof of identity, address, admission letter, income proof, and academic records.
  • Wait for loan sanction confirmation via SMS or email. Note that Avanse aims to sanction the loan within 72 hours, subject to eligibility and document verification.

Once the loan is approved, Avanse opens a loan account for you with one of their partner banks, such as ICICI or HSBC, and the loan amount is then credited to this account. As a Non-Banking Financial Company (NBFC), Avanse does not have a banking license to disburse the funds directly to your educational institution.

  

Features and benefits of Avanse education loans

Here are the key benefits of securing your education loan from Avanse. 

Features/Benefits Details
100% Funding Avanse provides 100% funding for all education expenses. 

This ensures timely payment to the institute. 

During the study period, the living expenses of the student are also covered under the loan.

Minimum Loan Amount ₹1 lakh
No Upper Limit The loan covers the full course fee charged by the educational institute.
Pre-Admission Expenses Covered Avanse also covers pre-admission expenses such as application fees, test preparations, consultant fees, etc.
Immediate approval If you meet all the eligibility criteria and submit all documents on time, your loan can be approved in just 72 hours.

 

Documents required to secure a student loan from Avanse 

As you gear up to apply for an Avanse education loan, it’s essential to have all your documents ready. Here’s a list of all the documents you’ll need: 

  • Academic transcripts
  • Student KYC (ID, residence, and age proof)
  • Course and fee details
  • Test score relevant to the university/program you’ve applied to
  • 2 passport-sized photographs

If you’re applying for a secured loan, you’ll also need to provide documents related to collateral. These could include:

  • Documents of ownership of tangible security, like residential property
  • Documents of ownership of intangible security, such as fixed deposits, life insurance policies, or government bonds

Education loan lenders will also consider your employability before approving your loan. Here are some factors they will assess you on:

  • Academic performance
  • Entrance test scores
  • Reputation of the university/institute and courses
  • Continuity in your academic record 
  • Your chosen study destination (for overseas students)   

Tips to keep in mind when applying for an Avanse education loan

The following tips will help you avoid common stumblign blocks faced by students whenthey apply for an education loan. 

 

  • Carefully read the Avanse Education Loan eligibility criteria. 
  • Missing out on university seats due to incomplete documentation is a real risk. Ensure you have all the necessary documents for a swift application process. 
  • Apply for your education loan well in advance to avoid delays. In some cases, it takes time for pre-sanction procedures and document verification.
  • A co-applicant is necessary for your education loan application, such as a parent or sibling. They will need to organize their documents and present a good credit score. 

What are the collateral rules to get an Avanse Education Loan?

Accepted collateral for security includes residential property, fixed deposits from registered organizations, and life insurance policies with a surrender value that meets the required security coverage.

Note: Avanse also offers 100% financing without any collateral. During the due diligence process, the loan officer will evaluate your past academic history, ranking of your desired course/university, potential for future employability and your family’s credit history.

A quick word of advice before you proceed further. While Avanse education loans are a great option, what’s even better is for you to compare India’s top education loan products before you apply. 

To make this process easier and a lot faster, we built FundRight, an AI powered platform that simplifies the process through which you can find the best education loan. 

How does Fundright make education loans simple?

It’s quick and easy. 

  1. Register on FundRight and complete your profile
  2. Get your loan offers from 15+ top banks and NBFCs (including Avanse) in 2 days or less
  3. Compare and negotiate even further (get help from a FundRight expert, for free)
  4. Upload your documents
  5. Get your loan approval in 10 days or less

FundRight can save you up to 23 lakhs, because when lenders compete for your loan, you get the best interest rates and flexible terms.   

Ready to get your education loan hassle-free? Click here to know more. 

FAQs About Avanse Education Loans

What is Avanse and what does it offer?

 

Avanse is an education loan provider that offers financial assistance to students pursuing higher education in India and abroad. They provide loans to cover tuition fees, living expenses, and other educational costs.

 

How do I know if I am eligible for an Avanse education loan?

 

To be eligible for an Avanse education loan, you must be an Indian citizen aged 18 or above with confirmed admission from a recognised university. Additionally, you may need a co-applicant such as a parent, sibling, or relative. The co-applicant provides a guarantee to the lender that the loan will be repaid. The lender considers the financial stability and credit history of the co-applicant when they evaluate your loan application. 

 

Do I need collateral to apply for an Avanse education loan?

 

Avanse offers both secured and unsecured education loans. While collateral may be required for some loans, Avanse also provides loans without the need to show any collateral.

 

What are the interest rates for Avanse education loans?

 

Avanse offers competitive interest rates ranging from 10.5% to 16.5% per annum. The exact interest rate depends on factors such as your credit history, the loan amount, duration of repayment, and the reputation of the university/program you’ve secured admission to.  

 

How long does it take to get a loan offer from Avanse?

 

When you apply via FundRight, you can expect loan offers from 15+ lenders (including Avanse) in 2 days. 

 

What documents do I need to apply for an Avanse education loan?

 

The documents required may include academic transcripts, KYC documents, course and fee details, CAS letters, and passport-sized photographs. Additional documents may be required for secured loans.

 

Can I apply for an Avanse education loan for studies in Australia or New Zealand?

 

Yes, Avanse offers education loans for studies in Australia and various other countries. However, for New Zealand, the embassy requires secured loans, especially from NBFCs like Avanse. Therefore, non-collateral loans from Avanse will not be accepted for visa approval in New Zealand.

 

How does Avanse evaluate my loan application?

 

Avanse evaluates loan applications based on factors such as academic performance, entrance exam scores, university ranking, and the selected course.

 

Can I prepay my Avanse education loan?

 

Avanse allows prepayment of education loans, but prepayment is not permitted within six months of loan disbursement. Prepayment charges may apply.

 

What are the benefits of choosing Avanse for my education loan?

 

Avanse offers benefits such as 100% funding, customized loans, quick loan sanction within 72 hours, flexible repayment options, and personalized customer service to help students achieve their academic goals.

Picture of Shivani Mani

Shivani Mani

Shivani, aka 'Sheen' brings in 15+ years of experience in banking & finance. An IIM-A alumna, she actively interacts with students & provides actionable solutions to their study abroad funding issues.

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