Avanse Education Loan for Study Abroad: Your Complete Guide

Avanse Financial Services is a lender that provides education loans for higher studies in India and abroad. The loans include short-term education loans and student loan refinancing. If you are exploring options to help finance your dream of studying abroad, read on to learn if Avanse Education Loans could be a solution for you.

Features of Avanse Education Loan for Study Abroad

Avanse Financial Services offers customised education loans for Indian students pursuing higher education overseas. Some highlights of Avanse include:¹

• Up to 100% financing.
• Extended loan tenures up to 15 years.
• Collateral-free options up to INR 75 lakhs.
• Quick sanction letter.

Qualifying students can be approved for a loan before being approved for admission or a visa.

Loan Amount and Coverage for Avanse Study Abroad Loan

Avanse offers a minimum loan amount of INR 1 lakh, with no maximum cap on the loan amount. The approved loan amount will depend on the borrower’s qualifications. The loan is available to cover:²

• Up to 100% of the total tuition fees
• Up to 75% of the living expenses, including books and computers, not exceeding 20% of the total tuition amount.
• Up to 100% of any refundable deposits, supported by valid bills or receipts, and not exceeding 10% of the tuition fee amount.
• International travel expenses up to INR 75,000.

Interest Rate for Avanse Study Abroad Loan

Avanse Financial Services offers education loans at a rate of interest currently ranging between 10% and 16.5%, depending on the loan amount, credit rating, whether collateral is offered, and your overall course profile.³

The interest rate is based on a floating Avanse Base Rate (currently at 14.25%), which can change through the loan tenure depending on the market conditions.

Requirements for Avanse Study Abroad Loan

Here are the prerequisites to apply for Avanse Student Loans for Study Abroad.⁴

Student Eligibility

• You must be an Indian citizen.
• You must be at least 18 years old.
• You must be accepted into a recognized university. Under specific circumstances, Avanse can provide a pre-admission loan certificate for applicants pursuing STEP Master’s in the US.

Cosigner Requirement

Avanse Study Abroad Loan requires a co-borrower in India who is able to demonstrate their proof of income. Parents, siblings, or relatives of the student can qualify as co-borrowers. The co-borrower must have a Savings Bank Account in India with a chequebook facility.

Collateral Security

Avanse offers education loans with or without collateral, depending on the student’s academic record and the co-borrowers credit profile. Other factors determining if collateral is required include the course profile, the university’s reputation, and job prospects after completing the course.

Providing collateral can help a borrower get a lower interest rate or a larger loan.⁴

The maximum loan amount available without collateral is INR 75 lakhs.

Upfront Payment

Avanse loans have a processing fee ranging from 1% to 2% of the loan amount that must be paid before receiving the loan sanction letter.⁴

Avanse Education Loan Repayment Terms

Avanse offers a moratorium, or a holiday period during which no repayments are required, for or study period plus additional 6 months or 3 months after you start working — whichever is earlier.⁴

However, you can start making payments during the moratorium itself with flexible repayment options based on your needs.

• You can start principal and interest monthly repayments immediately while studying.
• You can pay only the interest amount while studying and start full principal and interest repayments after the moratorium.
• You can pay off a partial education loan interest during your studies.

Avance offers a loan tenure of up to 15 years on education loans.

How to Apply for Avanse Study Abroad Loan

To get started with the Avanse student loan application, submit your details on the official Avanse website. The Avanse team will contact the borrowers and assist in completing the loan application formalities. To complete your application, you will have to provide the supporting documents, including:⁴

• Student KYC and educational documents
• Details regarding the course and fees
• Co-borrower KYC and income details
• Collateral documents

To reach out to Avanse Financial Service, you can find the contact details on their website, along with the list of branch offices across India.

Getting the Money from Avanse Education Loan

Once you've submitted your complete application, Avanse has a quick turnaround time of 72 hours. Loans without collateral can take 4-6 working days before funds are available. It can take 8-10 days for loans that have collateral.⁴ When approved, borrowers must pay the loan processing fee and collect the sanction letter.

The details of the course duration, fees, and payment schedule must be provided to Avanse Study Abroad, and they will disburse the tuition payment directly to the college or university. You will need to submit a request letter with the fee requirements to Avanse every year for timely disbursement to the university.

Start your international journey with Wise: the world’s most international account⁵

Opening an overseas account is one of the first things you will need to figure out when you arrive abroad for your studies. Check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.