Avanse Education Loan for Study Abroad

Avanse or Avanse Financial Services Limited is a Non-Banking Financial Institution that deals with education loans for Indian and abroad institutions. They have no upper limit on Collateral-based loans and ₹75 Lakh maximum Limit for Un-Secured Loans. Avanse has a Zero margin policy which means they finance your education abroad up to 100%, including university fees and living expenses. 

For a Master's Education Loan application, collateral is not necessary unless there are issues related to CIBIL, a high cost of education, elevated credit risk, or low academic performance. It is advisable to include a Co-Applicant with a minimum monthly income of Rs 20,000 and relevant income documentation. An additional Co-Applicant will also be required to support the application, irrespective of their monthly income or employment status. Certain waivers are available for applicants to high-ranking universities or those with strong profiles, including exemptions from providing a one-year income tax return, waiving income proof, and considerations for low CIBIL scores or low income of the Co-Applicant.

For the Bachelor’s Education Loan, the applicant must provide collateral, such as a house, shop, or fixed deposit, to secure the loan. There will be a zero moratorium period, meaning you are required to start paying the full EMI from the first month onward. It is recommended to have a co-applicant who is a close relative, such as a parent, sibling, or close uncle. Additionally, the income of the co-applicant should be sufficient to cover the full EMI in order to meet the eligibility criteria.

Being an Official partner of Avanse, our Loan Education Expert will help you get up to 50% discount on Avanse Education Loan Processing Fees* and up to 10% discount on Interest rates*. Along with that, the process will be completely transparent and fast-forwarding. 

Expenses Covered by Avanse Education Loan

Here is the list of expenses covered by Auxilo for an Education Loan

1. Tuition Fee payable to University/College
2. Living expenses, including accommodation, food, and day-to-day expenses
3. Travel Expenses such as Flight Ticket and related costs
4. Insurance premium for student borrowers, if applicable
5. Partial Processing Fees or Legal Expenses (On Request)
6. Purchase of books/equipment/ instruments/ uniforms
7. Purchase of computer at reasonable cost, if required for completion of the course
8. Any other expense required to complete the course

Eligibility criteria for Avanse Education Loan

Here is the basic Eligiblity Criteria for Study Abroad Education Loan by Avanse. 

Student

• must be an Indian Citizen
• must be a minimum of 18 years of age
• must have a good CIBIL history

University

• must be approved by the concerned regularities
• can be a Graduate/Post-Graduate/technical course
• must have a good world and national ranking
• must be SDS & PGWP approved (for Canada only)

Academics

• must have a minimum of 50% in Class 10th, Class 12th, Bachelors and Masters
• must have a sufficient language proficiency exam scores

Co-Applicant / Co-Borrower

• must be an Indian citizen
• should be a father, mother, brother, sister, grandparent or any other blood relative.
• must be a financial earner (Salaried, Self-Employed, Farmer, or Pensioner)
• must have a savings bank account in India that allows them to sign cheques
• must be the primary debtor
• must have a good CIBIL history

Collateral

• must be a fixed deposit or property such as a house, shop or an open plot
• property must be approved by the concerned authorities
• property must be located in an Urban or City area

Avanse Education Loan Processing Fees

Avanse charges variable processing fees based on the loan application. For applications based in Punjab, the cost is approximately 1.75% plus GST, while for applications from other areas, it is around 1.25% plus GST. The processing fee is calculated on the sanctioned amount and is unrelated to the first disbursement or any planned disbursement amounts. Additionally, they impose a fixed charge for legal expenses and stamp duty, which is set at 0.25% of the sanctioned amount.

If you apply for a Study Abroad Education Loan at Avanse through Abroad Cube, our expert can assist you in negotiating a discounted processing fee, potentially as low as 0.75% plus GST, depending on the specifics of your application. This can help you save significantly, all for free and without any extra effort.

Disbursement Process of Avanse Education Loan

Once your Education Loan application has been approved and you receive the Sanction Letter, you can proceed with the final disbursement process.

Avanse has an official partnership with HSBC Bank to help you open a bank account in your name. The loan amount will subsequently be disbursed into this account. An authorized representative from HSBC Bank will reach out to you via email and phone to guide you through the bank account opening process, ensuring a smooth experience.

Avanse's authorized partner will transfer the necessary funds directly to the university for your tuition fees. Living expenses will be provided either as a Forex Card or can be directly deposited into a foreign bank account. Please note that Avanse will not release any disbursed amounts to an Indian bank account to prevent loan fraud and misuse of funds. In cases of Tuition Fee Reimbursement, the funds will also be deposited only into a foreign account.

Avanse Education Loan Repayment Methods

For Avanse's Bachelor's Education Loan, applicants can only have Full EMI. This means the installment begins the first month after disbursement, and no moratorium period is provided.

In contrast, Avanse offers both Partial EMI and Full EMI options for Unsecured and Secured Education Loans for Master's programs. Typically, the Partial EMI ranges from Rs 2,000 to Rs 10,000, with an average monthly installment of Rs 5,000. The Full EMI begins after a moratorium period, which includes the duration of the study plus an additional grace period of one year. Applicants can request to switch from Partial EMI to Full EMI if desired. The repayment amount will be auto-debited from the co-applicants bank account around the 10th day of each month.

Charges of Avanse Education Loan

Here is the list of basic charges involved in Avanse Study Abroad Education Loan