Applicant can apply for an Avanse Education Loan if he/she is:
The applicant can apply anytime for an Avanse Education loan; the disbursement however happens once Avanse receives the admission confirmation from the institute for the course he/she wishes to pursue. Avanse also offers Pre-Admission Loans (PAL) in case the student has applied or is awaiting confirmation of admission from the university.
With the cost of education continually on the rise and the limited availability of financial assistance or scholarship aid, higher education funding can be very challenging. At Avanse, we understand this and hence offer a Pre-approved Education Loan, basis the credit worthiness of the applicant/s (parents/ guardian/co-borrower/borrower). A student can use this to present the as proof of funds while applying for admissions to different universities/institutes. In fact, with an Avanse Pre-approved Education Loan, an applicant can strengthen his/her case for admission, including the choice of course. It therefore makes sense to get a Pre-approval NOW, for a need that may occur later.
An Applicant should ideally start early. They should start the loan application process as soon as they know what college/institute/university they plan to attend, the cost of the course/course fees for the current academic year and, if possible, provide proof of enrolment/admission confirmation. The applicant should allow himself 6 to 8 weeks from the time of the initial application, until their school receives the funds.
Avanse Financial Services Limited is a new age, fast growing education focused NBFC. Avanse is part of the WGC group, a financial service conglomerate, with a presence across lending, insurance and Asset management. Avanse is an associate company of DHFL, one of India's leading Housing Finance Company. The International Finance Corporation (IFC), an arm of the World Bank holds 20 percent equity stake in Avanse.
Avanse is a Focused Education Loan Provider. It believes in enhancing the whole experience of higher education finance through its applicant-oriented and transparent approach. The difference is as under:
Yes, we do offer balance transfer facilities at competitive pricing.
We are all ears when it comes to our applicants, so getting in touch with us for any query, complaint or suggestions is very easy;
We will respond to your concern at the shortest possible time.
Yes, the applicant can apply for an Avanse education loan once again. However, it is important that he/she fulfil all the documentation and compliance requirements before re-applying to us.
Yes, a good academic record is preferred as it shows the student’s level of commitment to his/her curriculum and career, thus giving us the confidence to finance his/her career aspirations. However, this is not the only parameter used to evaluate the loan eligibility.
Yes, we do finance courses for admissions secured through payment seats/ management quotas.
Avanse focuses on enabling your future and hence we do fund aspirants pursuing higher education through part-time, correspondence or online programs. However, we must recognize the course as per norms prescribed and regulated by the management at Avanse Education Loans.
Avanse Education Loans are structured based on the requirement of finance, subject to the repaying capacity of the parents/student. Our loan limits are broadly categorized as mentioned below:
At Avanse, the focus has always been to help the students in their pursuit of a higher education.
Hence, we look at tailor-made loans that suit the students choice of education, subject to the course and the college/institute/university meeting Avanses credit policies and requirements. Broadly, we cover the following:
An Avanse education loan provides the maximum loan amount i.e. 100% of the cost of education. It covers the following expenses that arise in your higher education commitments:<
Avanse ensures that it follows all compliances and regulations as deemed by the concerned government bodies and policies; this is to ensure good credit practises, which is beneficial to the borrower as well as to the lender. Our documentation requirements are simple and are categorized as below:
For the complete details on the documents required, please click hereIt is beneficial and reduces the turnaround time substantially if you submit all the documents as per the checklist upfront. Also, please do not forget to self attest all the submitted documents to prevent misuse.
Yes, there is a single fee, which usually ranges from 1-2% of the loan amount; it is charged for the complete processing of your loan application.
Margin amount is the amount that the applicant pays through his own source as a down payment or his own contribution towards the education. However, at Avanse we do not ask for margin money as our loans are designed to provide 100% funding of the cost of education.
Yes, customers can prepay their loan; charges for the same shall be applicable as per the prevailing policy of Avanse.
Yes it may change. Avanse offers loans at floating rates, which may change depending on the external economic conditions and internal company policies.
Avanse education loans are granted for the following tenures:
Avanse offers flexible repayment options. The student may choose to opt for the one most conducive to him/her:
Holiday period or moratorium is the tenure, which commences from the disbursal of the loan to the time the borrower makes his/her first Equated Monthly Instalment (EMI) payment. The repayment does not start in this period. A holiday period is the maximum time a student gets before he / she can start paying back the principal loan in the form of EMIs. At Avanse, the holiday period is 6 months after the course is completed or 3 months after the candidate has obtained employment, whichever is earlier.
It is to be noted that though EMI repayments are generally not due during the holiday period for full-time, masters level courses, it is financially beneficial for the borrower/s if he/she is able to start repaying EMI during the moratorium itself.
The principal moratorium option (i.e. simple interest repayment during the course) is generally not offered for courses that are at the bachelors level or are part-time in nature.
We at Avanse generally don’t suggest this as an option to our customers or give this as the past option.
The education loan amount is disbursed in Indian Rupees. The tuition and hostel fee will be directly disbursed to the educational college/institute/university, in instalments, as per the requirement of the specific educational institute. The loan amount related to other expenses will be disbursed in instalments, spread over the duration of the study and ideally will be transferred to the co-applicant’s account. In case the student does not reside at the hostel, the fee will be transferred to the co-applicant’s account. However for courses outside India, the loan amount shall be transferred as per agreement with the third party i.e FOREX service provider.
Recognized institutes refer to those that are affiliated to the State/Central universities and come under the Central Government University Grants Commission (UGC) programs or the All India Council on Technical Education (AICTE). The majority of the colleges in India fall within the ambit of the UGC and AICTE. Reputed institutes on the other hand are those that are pretty well known and have standard courses of repute. The definition of reputed institutions might vary with financial institutions. At Avanse we usually have a list of colleges and institutions that are considered reputed.
At the initial stage of application for an education loan with us, we verify the tenure of the course, fee tranches, and determine the cost of the entire course, as applicable at that point of time. Then, each year, the applicant is required to submit a form available at Avanse that gives the details of the subsequent fee requirement, and then the same is disbursed directly to the college/institute/ university.
No, the security coverage depends on the applicants merit and credit-worthiness and varies from case to case. Though, we advise that each customer offers the maximum collateral they have, as it opens up ample options for maximum loan eligibility and competitive interest rates during structuring.
Security for the loan is determined by the quantum of loan required and the credit worthiness of the principal borrower. At Avanse the following types of Collateral Security are accepted :
At Avanse the KYC policy specifies certain commonly available documents as proof of personal identification and address proof, so as not to cause inconvenience to those intending to seek a loan from us. For complete list of documents please click here
The rate of interest for education loans in India range from 10% to 16.50%. However the rate of interest may vary bank to bank or any other financial institution or NBFC. The main components which are the deciding factors when it comes to the rate of interest for education loans in India are weather the loan provided is secured or unsecured. Unsecured loans have a higher rate of interest as the risk of repayment is higher since there is no security; however secured loans have a lower rate of interest. Thus many firms ask for collateral while providing education loans in India. Educational loans have helped the young guns of our country to pursue their aspirations and reach soaring heights.
If you have a question which is not covered by us, please drop in your question and we will be in touch soon.