Avanse education loan

Avanse Education Loan

The investment in education can be considered highly lucrative as it reinstates you with high returns both in terms of knowledge and money. One of the vital assets of a nation’s economic growth is the educated population. However, the expense of education is rapidly increasing which is not affordable for most of the classes in society.

There are students who have the potential and the drive to ace their academics and reach their vision and career goals, but they are not able to gain access to these milestones due to the lack of financial assistance and the lack of funding to back them up, but this does not mean it is to stop them from soaring heights that they deserve to soar, this is where education loans come into play, to aid meritorious students in the challenges they face while pursuing an education and get through their academics.

Education loans help students and their families in funding the expense required for higher education. Most of the banks and financial institutions provide education loan with or without collateral.

Collateral is the immovable asset which must be pledged by the borrower in order to secure the loan which can be seized by the bank in case the borrower fails to repay the loan amount.

Here we will look into the details of Avanse Education Loan listed as the table of content

 Avanse Education Loan

The word Avanse is an extract of the French word for advance. It is an education finance company and an associative of Dewan Housing Finance Corporation Limited (DHFL), established in 1984 by late Shri Rajesh Kumar Wadhawan.

It is an advanced private company specialized to provide education loan to the deserving students for studies in both India and overseas. It has been working hard to bring financial flexibilities in the Indian education market. It strives to keep up an equilibrium of meritorious students and the academics that they pursue, making it easier and flexible for students to live up to their fullest potential

Today, it has collaborations with more than 400 educators and their allied organizations

Reasons why applying for the Avanse Education Loan is a good idea:

  • Easy application is done online
  • Tax benefits under Section 80E
  • Flexible repayment terms
  • Long moratorium period
  • No margin money up to Rs 4 Lakh

Avanse Education Loan Interest Rate

Avanse offers loans for courses in India and overseas and there is a variation in the rate of the interest for each of these categories. There can be changes in the interest rate every year, hence an applicant is advised to check the same on the official website for any updates.

  • The Avanse base rate is 12.65% with effect from 01.11.2018.

  • Interest is determined using Simple Interest Rate with Monthly rest.

Avanse Education Loan Charges

Description of Charges

Charges and Fees

Pre-Payment Charges

No pre-payment allowed in the first six months of the loan disbursement

Charges for late payment of EMI

2% per month

Cheque/ECS Swap charges

Rs 500/- + GST

Cheque/ECS Bounce charges

Rs 400/- + GST

Document handling charges

Rs 1500/- + GST

Processing Fee

1-2% calculated on a case to case basis.

Avanse Education Loan Eligibility Criteria

  • Age Limit: The applicant must be an Indian citizen and 18 years old or above.

  • Disbursement: The admission should be confirmed before the disbursement of the education loan.

  • Co-borrower:

    • The application form should be co-signed by an earning co-borrower in India.
    • The co-borrower must be an Indian citizen and could be a parent, guardian, or a relative.

    • The co-borrower must have an account in any bank in India with cheque writing facilities

 Courses valid under the Loan:

  • Graduation, post-graduation and degree/diploma courses carried out by colleges/universities approved by UGC/AICTE/IMC/Govt. etc.
  • Technical/professional courses such as engineering, medicine, law, management, aviation, and so on.
  • Degree/diploma courses offered by autonomous reputed institutions like IIT, IIM, and so on are considered valid by Avanse Financial Services Ltd.
  • Courses offered in India by reputed foreign universities.
  • Vocational training, executive programs and other courses which are under the approval of Avanse Financial Services Ltd.

Documents Required for Avanse Education Loan

  • Student KYC and educational documents

  • Course and fee structure from the Institute

  • Co-Borrower KYC and income documents

  • Collateral documents

Avanse Education Loan Coverage

  • Minimum Amount: The minimum amount given as study loan in India is INR 1 lakh.

  • Coverage: 

    • The loans are designed to provide 100% coverage with zero margin contribution from the applicant.

    • Up to 75% of total living cost including the purchase of academic materials, computers and other expenses essential in context with academics. Though this will not exceed 20% of the total tuition fee.

Avanse Education Loan without Collateral/Security

Collateral is the immovable assets/documents needed to be pledged by the borrower in order to secure the loan. The collateral pledged can be seized by the bank in case of bad debt when the borrower fails to repay the loan amount. There are many banks in India which support students who are not capable of providing security against the loan.

The unsecured loan usually has a higher rate of interest than the loan which is provided against collateral. Avanse offers unsecured loans of up to INR 50 lakhs. The additional eligibility criteria required would be the excellent academic background of the student.

Avanse Education Loan with Collateral/Security

Security of the loan is identified by the requirement of the loan amount and the creditworthiness of the borrower. The following security/collateral are accepted:

  • Residential property

  • Non-agricultural land

  • Fixed deposit with any deposit-taking organization selected in favour of Avanse.

  • Life insurance with surrender value equal to required security coverage.

  • Existing house mortgaged with DHFL if it covers the required amount.

Avanse Education Loan Repayment Tenure

  • Minimum repayment tenure is 12 months.

  • The maximum repayment tenure is 120 months which includes the course duration.

  • The waiver period is six months after completion of the course or three months after getting a job.

Disbursement of Avanse Education Loan

  • The study loan will be disbursed in the Indian currency
  • The tuition and hostel fee will be directly disbursed directly to the respective institute in instalments. The student loan resources related to other expenses will be disbursed in instalments across the period of the academic study. In case the student is not residing in a hostel, the fee is disbursed to the co-borrowers account.

This education loan is extremely beneficial and helpful to students all over the country and it is important for the students and the individuals to understand the importance of their academics and normalize taking up aid in order to eliminate the challenges that the global educational pedestal can pose and keep them away from their visualized goals and careers that they have planned out for themselves, and hence they need to understand the significance of education loans and why it is alright to take them up, with easy repayments in flexible instalments. Avanse provides you with the relief and the comfort of securing your education and establishing your goals and your dreams on a steady pedestal as such. you can take a loan from Avanse but you have to keep in mind that NBFC’s have a higher processing fee, higher interest rates in comparison to other education loaners and aren’t as flexible.

Avanse gives you easy repayments, in safe instalments, providing you loans with and without collaterals and so much more added easy benefits. 

Avanse Education Loan Contact Number

For any additional queries and details, you can dial 080 4660 6500 for Avanse Educational Customer care.

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