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Avanse Study Abroad Education Loans

Majority of the study overseas aspirants find themselves stuck when it comes to funding their higher education. Students having tangible security can avail secured education loans but those who do not have any security to pledge find it difficult to finance their higher education overseas. The government and private banks in India do offer unsecured overseas education loans but the quantum of finance is limited. In such cases, Non-Banking Financial Corporation (NBFC) comes to the rescue. 

An NBFC is a financial institution that facilitates bank-related financial services. Avanse Financial Services Limited is one such new-age NBFC that provides overseas education loans to students aspiring to study abroad. They offer education loans for both bachelor's and master's courses in more than 50 countries including the USA, Australia, UK, Canada, Germany, etc. Unsecured Overseas education loans are a great facilitator for one’s study abroad dreams when they do not have a property or collateral to pledge.

Facts about Avanse Education Loan:

  • Eligible Courses: Masters and Diploma programs belonging to the STEM field. MBA, MS and other technical courses are preferred. 
  • Eligible Countries: USA, Australia, UK, Germany, Canada and Ireland etc. 
  • Rate of Interest: 11% - 15% 
  • Maximum Loan amount: 45 Lakhs for Unsecured Education Loan
  • Repayment: Mandatory to pay simple interest during the course. Partial Interest and full EMI options are also available
  • Processing Charges: 1- 2% of the loan amount
  • Processing Time: 10 days 
  • Loan Margin: 0%
  • Maximum Tenure: 10 years

Maximum Loan Amount:

Avanse has charted out the terms and conditions for availing the maximum loan amount for overseas education. For secured education loans, the maximum amount depends on the project cost and the market value of the property whereas, for unsecured education loans, the maximum loan amount is up to 40-45 lakhs for the countries like the USA. For other countries like Germany, U.K., Canada, Ireland it is between 15 Lakhs to 25 Lakhs. 

Disbursement Policy:

The Disbursement loan policy of the Avanse Education Loan is quite flexible, and the amount can be disbursed as per the applicant’s requirements. Avanse disburses the sanctioned loan amount in the students’ account and further students are required to transfer the loan amount to the university. In some cases, the tuition fee is directly disbursed by the Avanse to the university account and the living expenses are transferred to the student's bank account. The disbursement policy for few countries like the USA, Australia, Canada varies. Know how it works: 

•USA: In the USA, universities insist the student submit a financial statement once the admission is confirmed, only then students can apply for the issuance of I-20. In such cases, Avanse Education provides a pre-approval sanction letter to issue the I-20, based on GRE and TOELF / IELTS score. The loan amount is fully disbursed in the student saving account. 

•Canada: Canadian Universities and Colleges asks for the payment of the first-year semester fee and living expenses in the GIC account. Avanse disbursed the amount according to the requirement of the university.

•UK: UK Embassy only accepts the education loan from the RBI regulated banks. But still, if a student is willing to avail an education loan from Avanse, he/she is required to get the loan amount disbursed from the bank, maintain the balance in the account for 28 days and then transfer to the university. 

•New Zealand: New Zealand Embassy accepts secured education loans whereas for unsecured education loans for studying in New Zealand, it is accepted up to 7.5 lakhs provided the student’s academic profile must be strong. 

Repayment Policy:

The applicants are required to pay the partial interest to Avanse while studying at the university and the rest of the amount is to be paid via EMIs. Applicants must pay this EMI on the compound interest after the completion of the course. They can also pay the whole simple interest on the disbursed amount while the student is still studying at the university. In this case, the student has to pay the EMI on the disbursed loan amount.

Eligibility to apply for Avanse Education Loan:

To apply study loan for abroad studies via Avanse, there is a specific criterion that should be met by the applicant and the co-applicant. Read on to find out: 

For the applicant:

  • An applicant should be a citizen of India.
  • An applicant should be at least 18 years of age.
  • An applicant should have received an offer letter from a recognized university.
  • An applicant should meet the decently scored in GRE/ GMAT/ IELTS or TOEFL.

For the Co-applicant: 

  • A co-applicant should be a blood relative of the applicant. 
  • A co-applicant should be working with a fixed income and must be filing Income Tax Returns at least for the past 2 years.
  • A co-applicant should have a good CIBIL score.

Criteria for Unsecured Loan: 

  • GRE score 300+ & IELTS 6.5 Bands
  • An applicant must have his/her own residence house
  • An applicant must be applying for a master’s degree or a PG Diploma 
  • An applicant must have chosen to study STEM-related or Management course
  • Avanse does not offer education loan for Bachelor’s degree (Rare cases with direct EMI)
  • Parents annual income should be more than 6 lacs with no liabilities of co-applicant.

Criteria for Secured Loan: 

  • The property that an applicant is willing to mortgage should be an urban property coming under a Municipal corporation. 
  • A rural property coming under Gram Panchayat is not accepted. 
  • A secured education loan is offered at 90% against the market value of the property 

Documents Required for an Avanse Education Loan:

Avanse asks for the academic documents of the applicant and the financial documents of the co-applicant. 

Here’s is the detailed list: 

  • Passport of the applicant 
  • PAN and Aadhar Card of the applicant, co-applicant 
  • Scorecard of GRE, TOEFL or any other relevant exams of the applicant
  • Admission Letter from the University of the applicant
  • Residence Proof of the co-applicant
  • All academic documents- mark sheets and passing certificates of the applicant
  • 2 Passport Size Photographs of the applicant and the co-applicant 
  • If Salaried Person then Income Tax Returns, Form No. 16, Salary Slips of the co-applicant
  • Bank Statement of Salaried Account for the last 6 months of the co-applicant
  • For businessmen, Income Tax Returns, Balance Sheet, Profit and Loss Account, Computation of Income, saving account or current account bank statement for the last 6 months of the co-applicant
  • Proof of business if the co-applicant is self-employed

How will E’LAN Loans help in availing an education loan from Avanse?

ELAN Loans has a tie-up with Avanse and hence it becomes easier for us to get the overseas education loan approved in no time. You can consider contacting us and our loan experts will take care of EVERYTHING.


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