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   Avanse Education Loan Guide: Collateral & Interest Rates Simplified

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Avanse Financial Services is a forward-thinking, education-focused NBFC dedicated to making education financing accessible and affordable for Indian students. So far, Avanse Education Loan has supported over 4,00,000+ students in more than 50 countries, helping them achieve their academic ambitions across 30,000+ courses and institutions. Let’s break down the details, streamline the process, and guide you toward a successful future with Avanse.

Key Takeaways:

  • Avanse Education Loans assists Indian students in studying abroad.
  • There is no maximum limit on the loan amount, with interest rates varying based on the country, university, and course chosen.
  • Interest rates for secured Avanse education loans range from 10-13%.
  • Avanse covers 100% of tuition fees and provides up to 75% support for living expenses, including books and a laptop (capped at 20% of tuition fees).
  • Loan disbursement typically takes 4-6 days with collateral and 8-10 days without collateral..

Avanse Finance Education Loan – Overview

Loan amounts and interest rates for Avanse Education Loans depend on the country and university. The table below outlines key details, including interest rates, processing fees, loan limits, etc.

ParametersDetails

Loan Amount		No upper limit for Avanse Education Loan; covers 100% of your education, with certain limitations for secured and unsecured loans (refer image)
Avanse Education LoanProcessing Fees
Ranges between 1—2% of the loan amount
Interest RatesAvanse Education Loan interest rates range between 10—13% for secured loans
Co—applicantsParent, legal guardian, sibling can be your co-applicant to avail an education loan from Avanse
Covered Expenses100% of tuition fees, plus 75% of living expenses, books, and a laptop (capped at 20% of tuition fees).
Repayment DurationUp to 10 years.
Courses CoveredUndergraduate, diploma, and postgraduate courses from government-approved universities.
Avanse Loan Eligibility Criteria

The Avanse Education Loan is available to Indian nationals enrolled in full-time courses at recognized institutions. The loan covers a wide range of disciplines, including engineering, management, medicine, and more. Applicants must have a co-borrower and meet academic and financial requirements. Eligibility is determined based on academic performance, standardized test scores, and the financial profile of the co-borrower.

Eligibility Criteria For Applicant
  1. Must be at least 18 years old.
  2. Must be an Indian citizen.
  3. Must have an official admission confirmation from a recognized university.
  4. A financially stable individual residing in India must co-sign the loan.
Eligibility Criteria For the Co-Borrower
  1. Must be an Indian citizen.
  2. Can be parents, siblings, legal guardians, or other close family members (parents and siblings are preferred).
  3. Must have an active Indian bank account with check-writing facilities.
  4. Must assume primary responsibility for loan repayment.
  5. Should have a good CIBIL credit score for loan approval.
How To Apply for an Avanse Education Loan?

Many students are unaware of the application process. Below are two ways to apply for an Avanse education loan: through UniCreds or directly via the Avanse website.

How to Apply for an Avanse Student Loan through UniCreds?
  1. Utilize our eligibility tool to determine if you qualify for an Avanse education loan.
  2. Choose between submitting an online application or contacting our education loan counsellors for a callback.
  3. Our counsellors are ready to assist you in securing an education loan tailored to your needs, with or without collateral.
  4. Submit your profile information online, and our specialists will carefully review it.
How to Apply for an Avanse Education Loan Through the Website?

Here are the steps to follow for the Avanse loan process:

  1. Create an account on their website and fill out the education loan for studying abroad application online.
  2. Speak to their education loan study abroad consultants.
  3. Send them your documents.
  4. If approved, your loan will be sanctioned in 72 hours.
Avanse Education Loan Rate Of Interest

Avanse Education Loan interest rates range between 10—16.5% p.a. However, if you are planning to take an Avanse Education Loan through UniCreds, the interest rates we provide for secured and unsecured Avanse loans are given below.

Loan TypeInterest Rate
With Collateral10-13%
Without Collateral11.5-13.5%

UniCreds’ collaborations with lenders like Avanse help streamline the loan application and disbursement process.

Avanse Education Loan Upper Limit

Avanse covers 100% of tuition fees, including living expenses, books, and travel. The unsecured loan limit ranges from INR 60-75 lakhs, while higher amounts require collateral.

USAUKCanada
INR 65 LacsINR 40-50 LacsINR 30-35 Lacs

Loan amounts and interest rates depend on the co-applicant’s income, eligibility, and creditworthiness.

Documents Required For Avanse Education Loan

Applicants must provide several documents when applying. Below is a broad categorization of the required paperwork.

CategoryDocuments

Identity Details		1. Aadhar Card 2. Valid Passport 3. Permanent Account Number (PAN) Cord 4. Driver’s License S. Voter ID 6. Birth Certificate
Academic Documents
1. 10th Marksheet 2. 12th Marksheet 3. Graduation Certificate
Financial Documents
Last six months bank statements
Post Disbursol Documents
1. College fee receipts 2. Consent of co-applicant


Co-applicants
Relationship proof, income proof, collateral documents, eight-month bank statements, identity & address proof, signature verification, age proof, passport-size photo
Benefits Of Avanse Education Loan

Choosing Avanse for an education loan depends on your priorities. If you value unsecured loans, competitive interest rates, and a hassle-free process, Avanse is a strong option. Before making a decision, compare different lenders and loan terms.

  • Your individual needs: What are your priorities in terms of interest rates, loan amount, processing speed, and customer service?
  • Your risk tolerance: Are you comfortable with the potential downsides of an unsecured loan, and mixed customer reviews
Avanse offers a unique set of benefits tailored to the students of India. Let’s have a look at them.
  1. Comprehensive Coverage:

Avanse education loan for abroad studies covers all your essential expenses, including course fees, book costs, housing, travel, and even your college laptop. Your focus remains solely on earning your degree.

  1. Tailored Financing:

Recognising the uniqueness of every student, course, and university, they offer customised educational loans to suit your specific needs.

  1. Flexible Repayment Plans:
Avanse provides repayment options thot you con tailor according to your financial

requirements, empowering you on your path to financial independence.

  1. Express Processing:

In situations where proof of funds is crucial for securing admission and applying for a visa, Avanse ensures lightning—fast processing of your educational loan paperwork. You’ll have everything you need to kick-start your higher studies.

  1. Holistic Support:

Beyond just financial assistance, Avanse offers comprehensive support, including financial guidance and various resources to help you make well—informed decisions and turn your dreams into reality.

  1. Effortless Application:

Complete the education loan process conveniently from your home by applying online. Our executives bring doorstep services, ensuring your online education loan application is ready on time.

Avanse NBFC, when compared to other NBFCs, for example, HDFC Credila Vs. Avanse,

Avanse is the most sought-after education loan NBFC in terms of application process,

disbursal, and eligibility criteria. Hope this blog helped you understand everything about Avanse education loans. Let’s answer some FAQs!

FAQ’s

How many days does it take to get a loan from Avanse?

Avanse education loan without collateral takes 4-6 working days, and for a loan with collateral, it takes about 8 – 10 days for loans that have collaterals.

What is the disbursement policy of Avanse?

Your tuition fee is disbursed directly to the university. The remaining funds are disbursed in your or your co-applicants’ account.

Is Avanse approved by RBI?

Avanse is approved by RBI and is 100% safe.

What are the countries Avanse supports?

Avanse supports 50+ countries, including India, the USA, the UK, Canada, Ireland, Germany, Australia, Russia, etc.

What is the maximum loan amount I can take from Avanse?

Avanse has no upper limit as it covers 100% of your education loans.

Where can I get Avanse’s Contact Number?

You can get Avanse’s contact number from their website or you can request a call from them while applying online.

What is the interest rate for the Avanse loan?

The Avanse loan interest rate ranges from 10-16.5% p.a.


Covered Expenses		Pays 100% of tuition fee; supports 75% of living expenses, including books and a computer, capped at 20% of tuition fee
Aanse Education Loan Repayment Duration
10 years

Courses Covered		Graduate, diploma, postgraduate courses offered by Government-approved universities

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Embarking on the application journey with international lenders can be a crucial step for students aiming to obtain education loans without the necessity for a co-signer or collateral. A clear understanding of this application process can significantly boost your likelihood of acquiring the essential funds for your overseas education.

Lender research: Start by exploring international lenders that offer education loans to students without demanding a co-signer or collateral. Assess their terms, interest rates, and eligibility requirements. Utilize websites, student forums, and testimonials as resources to gather insights.

Eligibility verification: Confirm that you align with the lender’s eligibility prerequisites. Typical criteria include acceptance into an accredited university, enrollment in a qualified program, and compliance with age and nationality specifications.

Application process: Proceed to apply online via the lender’s portal. This step involves submitting your personal details, academic history, and information about your intended course and university. Some lenders might ask for a comprehensive study plan or projections of your future earnings.

Documentation: Provide the necessary documents for verification, which often includes your offer letter from the university, academic records, identification proof, and financial documents. Lenders might request additional documents to evaluate your prospective income potential.

Loan approval: Upon approval, you will receive a loan proposal from the lender. It is crucial to thoroughly examine the terms, such as the interest rate, repayment conditions, and any applicable fees. Accepting the offer involves signing a loan contract, either electronically or in a physical format.

Fund disbursement: Typically, the lender coordinates the fund disbursement directly with your educational institution. The release of funds might occur in a single payment or in installments, depending on the tuition payment schedule and lender’s policy.

Understanding repayment: Familiarize yourself with the repayment conditions, which can vary widely among lenders. Some might allow interest-only payments during your study period, while others might offer a grace period post-graduation before commencing full repayment.

By diligently navigating these steps and preparing your application, you can improve your chances of securing an education loan from international lenders, facilitating your journey to study abroad without the requirement for a co-signer or collateral.

Loans from these international institutions are typically denominated in USD, which introduces a layer of complexity due to currency conversion to INR. Interest rates, though seemingly competitive, can translate to substantial amounts once converted and factored over time.

A minor fluctuation in interest rates can significantly affect the total repayable amount. Students must be acutely aware of the exchange rate dynamics and how they can amplify the loan burden, especially considering the long-term repayment horizon.

MPOWER Financing and Prodigy Finance are revolutionizing the education loan sector by providing loans to international students without the need for collateral or a co-signer. Their assessment is based on future earning potential rather than historical credit scores, making education abroad more accessible.

Unlike traditional banks in India that often require collateral or a co-signer, these international institutions focus on the student’s future income potential and academic background. This approach broadens the horizons for students who might not have substantial assets or a co-signer.

Factors to Consider When Securing Education Loans Without Collateral

Securing education loans without collateral or a co-signer is a viable path for students, thanks to international financial institutions like MPOWER Financing and Prodigy Finance. These organizations offer unique opportunities for students to fund their education abroad, distinguishing themselves from traditional public and private sector banks in India. However, the financial nuances, particularly the interest rates which are calculated in USD, demand a deeper understanding to ensure informed decision-making.

Lenders are more inclined to offer loans to students admitted to top-tier universities. The reputation of the institution acts as an assurance of the student’s future employability and income potential. Higher the institution’s reputation, greater the likelihood of receiving favorable loan terms. Some lenders have special schemes or lower interest rates for students from esteemed universities.

Pledging a collateral

While the focus is on securing loans without a co-signer, offering collateral can be a viable alternative. It provides a security net to the lender, potentially improving your loan terms and increasing the amount you can borrow.

Building a strong credit profile is crucial for students seeking loans independently. Timely payments and responsible credit management can demonstrate to lenders that you’re a reliable borrower, potentially eliminating the need for a co-signer. Regularly monitoring your credit score, avoiding excessive debt, and maintaining a history of prompt payments can significantly enhance your creditworthiness in the eyes of lenders.

A good CIBIL score is indicative of your creditworthiness and is crucial when applying for a loan without a co-signer. Lenders use this score to assess your ability to repay the loan based on your past credit behavior.

Tips to improve your CIBIL score

  • Pay your bills and existing loan EMIs on time.
  • Keep your credit utilization ratio low.
  • Monitor your credit report regularly to ensure there are no inaccuracies.
  • Avoid applying for multiple credit products simultaneously, as it can imply credit hunger.