Avanse Education Loan for Studying Abroad

Avanse Financial Services is an Indian Non-banking Financial Company (NBFC) that specialises in providing customised higher education loans for students to study in India and abroad. Avanse education loans are secured or unsecured, with no margin, and vary based on students’ profiles to help them fulfil their career dreams.

• Type of Education Loan: Secured (with collateral) and unsecured (without collateral)

• Study Destinations: India and abroad

• Loan Amount for Studies Abroad: Up to ₹2 crore

• Interest Rate for Studies Abroad: 10.25% p.a. onwards (directly); 10.00% p.a. onwards (via WeMakeScholars)

• Processing Fee: Up to 2% + GST (directly); Up to 1.5% + GST (via WeMakeScholars)

• Sanction Time: 3 working days

Avanse offers competitive deals on both domestic and international education loans to students pursuing their higher studies. The table below summarises the Avanse education loan interest rates, maximum loan limit, sanction time, tenure, and processing fee for higher studies. 

*The Avanse education loan interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the NBFC’s discretion. 

**A 3-day sanction time applies to unsecured loans. Secured loans may take longer.

Avanse offers abroad education loans up to ₹2 crore with interest rates starting from 10.25% p.a. However, if you apply through WeMakeScholars, you can avail loans at a starting interest rate of 10.00% p.a.

Avanse abroad education loans are distinctly categorised into three products:

1. Platinum product

2. Titanium product

3. Gold-Vanilla product

These three loan products apply to eligible students studying in selected countries, and each product is based on the university you choose and your academic performance.

To learn about the Avanse abroad education loan in detail, watch this video where our co-founder, Damini Mahajan, gives a complete picture of Avanse’s loan process. She elaborates on Avanse’s loan features such as loan amount, interest rate, repayment tenure, and specific conditions set by the NBFC. 

Avanse primarily offers two types of education loans: secured and unsecured. The inclusion of collateral affects the interest rate offered to you.

Avanse Education Loan With Collateral

Avanse offers secured education loans, meaning you obtain the benefit of lower interest rates and higher loan amounts by pledging collateral. 

Avanse accepts the following types of collateral: 

• Immovable properties: A house or a flat; non-agricultural land with clear boundaries

• Liquid securities: Fixed deposit (FD), government bonds, and life insurance

Avanse Education Loan Without Collateral

Avanse unsecured education loans provide higher loan amounts with quick processing time and competitive interest rates. An Avanse education loan without collateral does not require applicants to pledge any security for the loan.

Regardless of the loan type, Avanse offers high loan amounts, provided the student and co-applicant have good academic and financial profiles, respectively.

Academic expenses extend beyond tuition fees and include plane tickets, accommodation, study materials, laptops, and miscellaneous items. Avanse covers this comprehensive range of expenses through its student loans.

Avanse covers the following expenses for a student planning to study abroad:

1. 100% of the tuition fee.

2. 75% of study abroad living costs, provided it does not exceed 20% of the tuition fee.

3. 100% of the security deposit, provided it is not more than 10% of the tuition fee and has valid receipts from the university.

4. Travel expenses up to ₹75,000 for plane tickets.

Along with academic expenses, the Avanse abroad education loan also covers other university expenses:

1. Library charges

2. Laboratory fees

3. Study material 

4. Hostel fees and rent

The Avanse education loan interest rates for studies abroad start at 10.25% p.a., whereas for studies in India, they start at 10.00% p.a. The interest rate is calculated based on two components: Avanse’s base lending rate plus a floating spread rate. However, the actual Avanse education loan rate of interest students get depends on several factors, including market changes, the loan amount, collateral involvement, country of study, the student’s profile, and the co-applicant’s financial status.

Moreover, you can even achieve interest rates as low as 10.00% p.a. for studies abroad, provided you process your loan via WeMakeScholars.

Check out the detailed explanation of Avanse education loan interest rates, how they are calculated, along with a worked example of your estimated EMI.

What Decides Your Interest Rate

Several factors determine the final interest rate applicable to your education loan apart from the base and floating spread rate. They are explained as follows:

• Collateral: Whether or not you pledge any assets determines the interest rates you receive. To reduce risk, lenders price interest rates higher when there is no collateral. Conversely, loans supported by collateral bring lower interest rates and higher amounts.

• Credit Score: 685 and above is considered a good CIBIL score for an education loan, which can secure better funding deals. 

• Co-Applicant’s Income: Co-applicants in established businesses or companies with higher income brackets can unlock lower interest rates.

• Academic Record: A strong academic record and competitive exam scores show lower risk and can lead to better rates for students. 

• Course & University Profile: You are eligible for reduced interest rates and high loan amounts if you secure admission to a top-ranked university 

Avanse education loans have four schemes for studies in India. These schemes cover 100% of the tuition expenses, with no rigid limits on loan or interest rate figures. Get a quick overview of Avanse’s domestic education loan products below:

1. Loan for Higher Education in India: This scheme applies to general higher education (UG and PG studies). The loan amount goes up to ₹2 crore for secured loans and up to ₹50 lakh for unsecured loans, with a starting interest rate of 10.00% p.a.

2. Executive Education Loan: Avanse introduced this scheme particularly for management courses. While the minimum amount offered is ₹1 lakh, there is no maximum cap on the loan amount. The interest offered is at floating rates.

3. Skill Enhancement Loan: This scheme gives loans for professional skill development courses. There is no maximum cap on the amount and no specified interest rate.

4. Short-Term Education Loan: Unlike other schemes, this loan scheme covers school fees and other specialised online courses that act as a quick access to funds. The maximum amount offered is up to ₹3 lakh, with no interest on affiliated institutes.

Applying for an education loan comes with administrative charges, including the Avanse education loan processing fee and applicable penal charges. The following charges can apply when you take an Avanse education loan: 

*Keep in mind that these charges are subject to the applicable terms and may change at the lender’s discretion.

Avanse education loan eligibility requires students and their co-applicants to fulfil certain criteria regarding their age, nationality, financial profile, course, and country. Let us explore the list of Avanse education loan eligibility criteria to be met by the borrowers. 

Student Eligibility Criteria

• Must be a citizen of India

• Should be at least 18 years of age

• Should have received admission to a recognised university abroad

• Should have relevant test scores for competitive exams like GRE, GMAT, IELTS, and TOEFL

Keep in mind that Avanse places greater emphasis on a student’s potential to gain employment over the co-applicant’s financial profile. 

Co-Applicant Requirements

• Must be a citizen of India and based in India 

• Should be a close relative or legal guardian of the applicant. They generally include: Parents, parents-in-law, siblings, spouse, brother-in-law, parents’ siblings, and first cousins

• Should be working and provide valid income-related documents

• Should have a good CIBIL score

Eligible Courses and Countries

Avanse’s abroad education loans are offered to top countries like the USA, UK, Australia, Germany, Canada, and many other countries abroad. And as for the courses, Avanse prioritises variety. They fund various types of UG and PG courses, along with professional degrees and diploma courses offered by recognised universities. 

This is the list of courses that the Avanse education loan covers:

• STEM Courses: Science, Technology, Engineering, Mathematics

• Medicine, law, and aviation

• Job-oriented professional or technical courses

• Executive programs, vocational training, etc.

Note that the courses and the university of choice must be approved by Avanse. However, in cases where the university is not approved by Avanse, WeMakeScholars can still assist in getting a good loan deal. Deviations can be made in such situations, provided the co-applicant earns more than ₹12 lakh per annum and the student has a good academic profile.

Certain Avanse education loan documents must be submitted before starting the loan process to complete validation and verification. The Avanse education loan documents required are listed as follows:

Student Documents

Co-Applicant and Income Documents

Collateral Documents

Collateral documents are only required in case of a secured loan. These documents include the following:

• Latest title deed 

• Valuation certificate

• Encumbrance certificate

• Property tax receipts

• Legal heir document, if applicable

• Other additional Avanse education loan documents required by Avanse’s legal team 

See the full list and never miss any document with our complete education loan document checklist.

How to Apply Through WeMakeScholars

You can apply for your Avanse education loan via WeMakeScholars and also have access to 20+ lenders to secure the best funding deals. Follow this procedure for a smooth and convenient application process:

Step 1: Request a call from financial officers through WeMakeScholars to check your eligibility. These loan experts will help you determine which loan best suits you with a detailed comparison of all the lenders.

Step 2: You will be given a document upload link. Send the required paperwork to the NBFC or upload it to the secure document gateway on WeMakeScholars. Your file will be logged as soon as you submit your papers.

Step 3: Your lender will issue a sanction letter after evaluation. 

Step 4: The loan will be disbursed after the acceptance of the loan agreement.

Avanse Education Loan Application Form

For an online application for an education loan directly through Avanse, follow the steps below:

Step 1: Fill out the Avanse education loan application form with your basic details

Step 2: An NBFC executive from the Avanse team will connect with you to help with checking your eligibility and answer any other inquiries. 

Step 3: Submit the required documents such as KYC details, academic records, admission letter, and financial details.

Step 4: After verification, your loan will be sanctioned and ready for disbursement according to the fee schedule.

However, going straight to the lender can present certain issues, which can interfere with a smooth loan application process. They are mentioned as follows:

• Avanse’s education loan processing time can be longer

• Lenders can sometimes provide insufficient explanation of the full application process

• Students can risk paying more, as lenders tend to offer negotiated rates through education loan advisors such as WeMakeScholars

• The lender does not give a clear list of the papers required to process the loan.

• Students miss out on learning about the several additional charges that follow the loan process.

• Lenders may not provide assistance after the education loan disbursement process when contacted directly.

How to Check Your Application Status

After filling out the Avanse education loan application form, you can track your loan application status in the following ways:

• Avanse Web Portal: Log in with your registered mobile number or email ID on Avanse’s official customer portal. After logging in, you can view your loan details and file status.

• Avanse Mobile App: You can install the Avanse Financial Services app, enter your credentials, and track your application through the app dashboard.

• Financial Officer at WeMakeScholars: If you secured a loan via WeMakeScholars, your assigned Financial Officer will provide timely updates on your application status.

• NBFC Executive: If you directly applied through Avanse, the NBFC executive will assist with your queries regarding the application status. The Avanse education loan contact point is the NBFC executive.

Processing Time and Sanction 

The Avanse education loan processing time depends on several factors, including the loan type, documentation, the student’s profile, and the co-applicant’s profile. However, Avanse unsecured education loans offer a processing time of roughly 7 to 10 working days after all required documents are submitted. They can take even longer in the case of secured loans.

Moreover, the processing fee for an Avanse abroad education loan varies by country and scheme. The Avanse education loan processing fee ranges from 1% to 2% of the loan amount plus applicable GST.

On the other hand, Avanse claims to sanction your loan within three days, which primarily applies to unsecured loans. Secured loans require longer processing time due to legal and valuation verification. The sanction letter confirming your loan approval helps prove to the embassy that you have sufficient funds for your academic expenses. Ensure you keep all your essential Avanse education loan documents handy to submit them on time and complete any required verification for a smooth sanction process.

The Avanse education loan offers students a flexible way to finance their education at several reputed institutes offering higher education. The following are the important Avanse education loan repayment policies, including the moratorium period and the repayment term. Understanding these terms will assist in decision-making while borrowing an education loan from Avanse.

Moratorium Period and Payments During Study

The moratorium period on education loans is the period during which the repayments or the EMIs of the student loan do not start. At Avanse, the moratorium period includes the course duration plus a six-month to one-year grace period or up to three months after securing a job, whichever is earlier.

The EMIs of the education loans do not start during the moratorium. However, students are required to make partial or full simple interest payments during their studies, i.e., the moratorium period.

Avanse Education Loan EMI Calculator 

The Avanse education loan calculator estimates the monthly payments, total interest, and total repayment amount for an Avanse education loan. Applicants can enter details such as the loan amount, interest rate, and loan term, and it computes the monthly EMIs of the student loan based on this information. 

However, unlike the EMI calculator from WeMakeScholars, the Avanse education loan calculator overlooks essential payment factors during the moratorium. This tool offers the following advantages to borrowers:

• It provides a detailed analysis of the student loan repayments, through which you can plan your repayment schedule accordingly.

• Unlike the Avanse education loan calculator, our EMI calculator considers all the essential factors, including the moratorium period and partial disbursements, to provide accurate results.

• Students can edit the parameters to decide their repayment strategy and take out their student loans accordingly. Like all our services to students, the education loan EMI calculator is also free of cost.

Check out our EMI calculator now to calculate your estimated EMI.

Prepayment and Foreclosure Charges

Prepayment refers to the payment made to reduce the outstanding principal amount. Foreclosure, on the other hand, means paying a lump-sum amount in a single payment to clear the loan completely.

For Avanse education loans, a 2% prepayment and foreclosure charge applies only to fixed-interest-rate loans. These charges do not apply to floating-rate education loans. However, note that you cannot make a prepayment within 6 months of the disbursement of the loan.

Repayment

Avanse’s education loan repayment tenure is as follows:

• Minimum time to repay: 1 year

• Maximum time to repay: 17 years (including course duration)

According to the Avanse education loan repayment policy, simple interest must be partially or fully paid during the moratorium period. EMI payments must begin right after the moratorium ends. However, to reduce your long-term cost, you can choose to pay your EMI during studies as well.

Avanse Financial Services is an established NBFC that primarily focuses on providing education loans for higher studies in India and abroad. It offers high loan amounts even without collateral while covering 100% of the tuition expense. 

Additionally, Avanse has introduced two new schemes, namely, EduSure and EduSure+, effective from 20th July, 2026. They allow students with an abrupt change of plans after loan disbursal to return their entire loan amount with no penalties.

However, to really answer the question, ‘Is Avanse good for education loans?’, the table below breaks down the advantages and disadvantages of an education loan from Avanse:

To give the final verdict on whether you should choose Avanse as your education loan lender:

Choose Avanse:

• If you secure admission to a top-ranking university in countries such as the USA, UK, Germany, Canada, and Australia

• If you do not have collateral

• If you require a fast loan sanction process

Consider other lenders:

• If you have strong collateral as security (public banks are a good choice for this)

• If you have plenty of time before your intake

• If you do not wish to pay anything during the moratorium

If the cons mentioned above apply to you, apply through WeMakeScholars to get negotiated loan amounts and interest rates through other popular lenders.

After understanding whether Avanse is good for education loans, comparing your options with other NBFCs can give you an idea about how their loan terms differ.

*Note: The interest rates mentioned are indicative and subject to change. The final interest rate also depends on individual profiles and the NBFC’s discretion. 

Applying for Avanse education loans through WeMakeScholars offers a hassle-free loan process along with several other benefits. 

• WeMakeScholars offers unbiased assistance and matches you with 20+ lenders to get you the best education loan deals for free.

• WeMakeScholars offers a swift Avanse education loan processing time of 7 to 10 working days after all the necessary documents are submitted.

• WeMakeScholars maintains transparency and professionalism with students.

• For any follow-ups or updates, the financial officers at WeMakeScholars act as a single point of contact.

• By applying, you will receive a payback on multiple loan disbursements up to a maximum of ₹3,000 as a thank you for supporting the Digital India initiative.

Avanse education loans can work well for students seeking speedy, flexible, and collateral-free loan sanctions. With its new EduSure scheme for sudden plan changes, Avanse keeps students' best interests in mind. 

However, if your goal is to achieve negotiated interest rates or explore more options from different lenders, check your eligibility through WeMakeScholars.