Last Modified : September 14, 2018
Avanse Education Loan is provided with minimum INR 50,000 loan amount for studies in India and minimum of INR 1 Lac for studying overseas. The maximum loan amount is not restricted, it depends on students’ academic needs
Avanse does not believe in putting any burden on you. Hence, it provides loan with zero margin, that is, 100% finance facility. The loan amount covers upto 75% of your living cost along with your academic expenses.
Avanse offers executive education loan for students securing admission to top premier institutes such as IIT, NIT, IIM, XLRI, etc.
Avanse have the facility of online application form for its education loan variant. Below mentioned are points that you need to follow for availing education loan
Post successful filling of enquiry form, Avanse’s representative will contact you and guide you for further loan procedures.
Below mentioned are all aspects of education loan offered by Avanse. Have a look:
Avanse Education Loan is extended to students with maximum benefits such as 100% finance facility, easy loan disbursal, door step service to financially assist them in their academic journey.
What makes you eligible for Avanse Education Loan?
Present Rate of Interest
Interest rate charged by Avanse for all loan amounts ranges from 10% to 16.50%
Quick Facts about Avanse Education Loan
|Margin||Nil, 100% finance facility|
|Maximum Loan Limit||No upper limit|
|Security||Avanse accepts security in many forms such as real estate properties, LIC, fixed deposits, NSC, KVP, NSS, etc. The security has to be in the name of the student/parent/guardian.|
|Moratorium Period||Course period + 6 months (if unemployed) +3 months (if employed)|
|Repayment (Maximum)||Repayment of the loan can be done after the moratorium period by mode of EMI Maximum repayment loan: 10 years|
|Prepayment Charges||As per RBI guidelines|
Additional Facts about Avanse Education Loan
Courses covered under Avanse Education Loan
Expenses covered under Avanse Education Loan
Documents required for Avanse Education Loan
Q: Does NBFC’s offer any interest subsidy scheme along with its education loan variant/s?
Answer: No, NBFCs does not provide any interest subsidy scheme initiated by the government.
Q: In whose name is the loan granted?
Answer: The loan is granted in the name of the student
Q: What is the age limit for availing loan from Avanse?
Answer: Student must be of 18 years and above while applying for education loan from Avanse. He/ she should also clear the other eligibility criteria’s stated by Avanse
Q: What does margin on any loan mean?
Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Q: Where can I avail Avanse Education Loan?
Answer: You can fill the application form online from the official website or contact the branch for the same.
Q: What are the basis on which education loan application is evaluated?
Answer: Avanse considers various parameters when evaluating the education loan application. Some of these parameters are popularity of course, recognized institute, credit score of borrower/co-borrower, etc.
Q: My loan application was rejected once, can I apply again?
Answer: Yes, you can apply again. It is necessary that you have completed all your document requirements and fulfil the eligibility criteria stated by Avanse.
Q: Is there any minimum aggregate marks to meet the eligibility criteria to avail Avanse education loan?
Answer: No, there are no minimum aggregate marks stated by the Avanse in regard of eligibility to apply for the loan.
Q: What is the discount/ rebate offered by Avanse?
Answer: There is 1% concession on rate of interest if interest is serviced during moratorium period.
Q: What all is included in tangible collateral security?
Answer: Avanse asks tangible collateral security for all amounts of loan. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Q: Is collateral security mandatory for Avanse Education Loan?
Answer: No, Avanse offers unsecured loans as well. They are limited to certain amount of loan, for which borrowers does not require any security.
Q: Is scholarship or assistantship included in the margin?
Answer: NBFCs does not charge any margin amount. They provide education loan with 100% finance facility.
Q: What is Moratorium Period?
Answer: Course Period plus one year, or six months after getting a job
Q: What is tenure of an education loan?
Answer: Tenure of education loan provided by Avanse is 5 to 7 years
Q: What does MCLR stands for?
Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of a financial institution below which it cannot lend.
Q: What all expenses are covered under this course?
Answer: Expenses covered by Avanse education loan are:
Q: Will my travel expense will be covered if I take loan from Avanse?
Answer: Yes, travel expenses are covered under this loan
Q: I have taken admission through management quota. Am I eligible?
Answer: There is no such provision mentioned by Avanse. You may contact the particular financial institution regarding the same.
Q: What do you mean by reputed or recognized institutes?
Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, NBFC’s provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Q: Are there any special benefits if I have secured admission to one of the top premier institutes?
Answer: Avanse has a special variant of education loan for students securing admission to top premier institutes.
Q: What is the processing fee or prepayment charges?
Answer: The education loan offered by Avanse carry 2% processing fee.
Q: Will cost of my computer be covered under the loan sanctioned?
Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Q: Why is Pan Card necessary?
Answer: Pan Card is one of the mandatory document required by NBFC these days. It is mandatory because:
Q: Are diploma or certificate courses considered under Avanse education Loan (both for India and Abroad)?
Answer: Yes diploma or certificate courses are eligible under Avanse Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping
Q: Is a co-borrower necessary for loan?
Answer: Yes, it is mandatory to have a co-borrower to avail loan from Avanse.
Q: Does Avanse accept multi-city/multiple co-applicants?
Answer: Yes. If the primary co-applicant fails to fulfil the eligibility criteria, the borrower can add more co-applicants for the loan.
Q: Who can be my co-borrower?
Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income in India, and a good credit history.
Q: What all documents are required from the co-borrower?
Answer: Documents required from the co-borrower are:
Q: What is the KYC requirement in education loan?
Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
Q: What are maximum term for repayment?
Answer: Maximum term for repayment is 5 to 7 years
Q: How can I repay the loan?
Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
Q: What is EMI? How are they calculated?
Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
Or simply you can use the EMI calculator provision available on official website.
Q: Is the loan disbursed in name of individual applicant or to the institute/ university directly?
Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
Q: If I am unable to complete my course in given tenure, will my repayment term be extended?
Answer: It is completely on the financial institution’s discretion to extend the moratorium period or not. You can contact your nearest branch for the same.
Q: Can applicant transfer his/her education loan to Avanse?
Answer: Yes, Avanse provides this facility at a competitive pricing.
Q: What is method of application of interest on education loan?
Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
Q: What is interest rate of education loan?
Answer: Interest rate charged by Avanse for all loan amounts ranges from 12.70-14.5%
Q: Can ROI change during period of my course?
Answer: Yes, there is a possibility that interest rate changes during course period as it is offered at floating rates, which might change due to external conditions and internal policies
Q: What is employment verification in an education loan?
Answer: Avanse takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If it fails to cross verify every detail provided, it might reject the loan application.
Q: Are there any tax benefits in education loans?
Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier)
Q: Can I repay my loan in foreign currency even if my financial institution is in India?
Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) NBFC might charge an additional currency conversion fee as per RBI regulations.
Q: Why do NBFC’s require insurance policy as security?
Answer: The NBFC’s require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, NBFC recovers the amount from the insurance policy
Q: What is credit score? Is it important for education loan?
Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, NBFC’s calculate it by considering factors such as University, College and the Course of admission. The academic background of student and credit history of co-borrower is also considered.
Q: Are NRIs eligible for the education loan?
Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Q: Is Visa a necessary document for studying abroad?
Answer: Visa is needed as a document proof but it is not a sole requirement.
Q: What all procedures do one have to go through while applying for abroad?
Answer: A student who is applying for studying abroad have to give necessary documents required by the NBFC. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
Q: If a student have any query, where or whom to contact?
Answer: student can reach out to the nearest branch in case of any query.
Customer Care Number: 1800 266 0200
Customer Care Id: firstname.lastname@example.org