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Collateral free education loans are an amazing facilitator to your study abroad dreams when you do not have property to pledge with government banks. In India, unsecured education loans are provided by Non-Banking Financial Companies (NBFCs). If you are looking for a non collateral loan, you need to know everything about the Avanse Education Loan Scheme. Avanse Financial Services Ltd is one of India’s leading Non- Banking Financial Companies (NBFCs) that provide collateral-free loans to students planning to study abroad.
Here are the basic details of Avanse Education Loan for Abroad Studies:
For an unsecured education loan, the terms and conditions are dependent on so many factors- the course and country, the student’s academic profile and the co-applicant’s financial profile. Hence the Avanse Education Loan terms and conditions are also flexible. This is where WeMakecholars helps you. Since we have partnered with innumerable banks and NBFCS, we can tell you exactly what a student with your profile can expect. Sign up for a free assessment of your overall profile with our experts.
What are the Avanse loan eligibility criteria for studying abroad?
According to Avanse Education Loan guidelines:
The applicant:
Should be a citizen of India
Should be at least 18 years of age
Should have received admit into a recognized university abroad
Qualified the relevant competitive exams like GRE, GMAT, IELTS, TOEFL
To get an education loan without security in Avanse, the Co- Applicant:
Should ideally be a close relative of the applicant. Parents and siblings are the first choice. In-laws or parents’ siblings can be considered on a case by case basis
Should NOT be the spouse of the applicant
Should be working and must be filing Income Tax Returns at least for the past 2 years
Should have a good CIBIL score. Speak to the non collateral education loan experts about what is considered a good credit scoreand other Avanse Education Loan requirements.
Avanse Financial Services- Eligible Courses
What are the eligible courses to get an Avanse loan without collateral?
According to Avanse Education Loan rules, Masters and Diploma Courses are selected for funding with collateral-free loans for international studies. Technical and Professional courses in the STEM field are preferred like MS and MBA. Arts and Humanities courses or even pilot training and license courses will be rejected. According to the Avanse Education Loan rules, Ph.D. and Bachelors programs are not eligible. This is because the duration of such courses is much longer and so the repayment tenure gets extended that much more. This is why longer duration courses do not meet the Avanse Education Loan eligibility criteria. However, Bachelors programs are sometimes considered if collateral security is provided.
This video by WeMakeScholars co- founder Damini Mahajan systematically explains all the main Non Collateral Avanse Education Loan details. Watch the video to become a Avanse Education Loan expert yourself!
Avanse Education Loans- Eligible Countries
What are the eligible countries for which Avanse Loan is sanctioned?
Unsecured Education Loans from Avanse Financial Services Ltd are limited to a few destinations. It is easiest to get an Education loan from Avanse for USA, Germany, Canada and Ireland. This is because it is much easier to get Permanent Resident Status and eventual citizenship in these countries. Unsecured Education Loan providers want the student to earn in foreign currency because that makes the repayment possibilities more viable. A limited amount of collateral free education loan can be given for Australia as well.
What are the documents that must be submitted to get an education loan from Avanse?
Most of the required documents revolve around the academic profile of the applicant and the financial profile of the coapplicant. Here is a brief list of the documents asked by Avanse:
Documents to be submitted by the Applicant in Avanse Bank Education Loan Scheme
Documents to be submitted by the Co-Applicant in Avanse Bank Education Loan scheme
Passport, PAN and Aadhar Card
Bank Statement of Salaried Account for the last 6 months
Scorecard of GRE, TOEFL or any other relevant exams
Payslips for the last 3 months
Admission Letter from the University
Residence Proof
All academic documents- marksheets and passing certificates
PAN and Aadhar Card
2 Passport Size Photographs
Proof of business (if self employed)
Avanse Loan- Maximum Loan Amount
What is the maximum Avanse Unsecured Education Loan possible?
According to Avanse Education Loan terms and conditions, there are specifications depending on the country. Here is a country-wise breakdown of the maximum Avanse loan amount possible.
Preferred Countries to get an education loan without collateral in Avanse
Maximum Amount of Education Loan in Avanse
USA
45 L
Germany
15 L
Canada
20 L
Ireland
15- 18 L
Australia
10- 12 L
Avanse Education Loan Interest Rate in 2019
What is the Avanse Education Loan ROI?
Avanse Interest Rate in 2019 Bracket
11%- 15% depending on the student’s profile
Avanse Education Loan rate of interest depends on the applicant’s academic profile-their marks during graduation, GRE/ IELTS/ TOEFL/ GMAT scores as well as the university ranking.
The Avanse Education Loan rate also depends on the financial profile of the co-applicant-their monthly salary, income tax receipts and credit score are of prime importance.
Contact our financial officers to find out what are the prevailing Avanse ROI ranges of students with similar profilesand also to get the best and latest Avanse Education Loan interest rate for your profile!
Avanse Education Loan- the Collateral and Non Collateral Option
Is it possible to get a secured Education loan in Avanse?
As Avanse Financial Services Ltd is an NBFC, it primarily processes the non collateral education loan scheme for abroad studies. When you take an education loan without collateral in Avanse, the additional charges are lesser, as you need not pay for legal and valuation process.
Please note that if you have a collateral, it makes more sense to take a loan from a public bank. Get in touch with our financial officers to understand all the government bank schemes for abroad education!
But there are some benefits of taking a collateral loan from Avanse too! Read on!
What are the benefits of pledging collateral with Avanse Financial Services?
Here are some benefits of pledging your collateral to get an Avanse Education Loan:
Applications which would normally have been rejected can be reconsidered. If your GRE score is low, or you had too many backlogs during graduation, or if your co-applicant is retired, it is difficult to get an unsecured loan from Avanse. But if you can add collateral, your Avanse Loan Application will be reconsidered.
Bachelors programs can be considered for a loan if you add collateral. Non collateral loans for Bachelors courses are impossible
The best part is, your eligible loan amount will be 30%- 40% higher than the value of your collateral! Government bank education loan amounts are always lesser than the value of the submitted collateral.
Avanse Education Loans are sanctioned in how many days?
The Avanse Education Loan Processing Time is about 10 days with the digital team of Avanse Financial Services Ltd, which WeMakeScholars will connect you to. It does not get faster than this.
Avanse Disbursement of loan amount is done in Rupees typically. For all international transactions, Avanse Financial Services avails the services of a third party Forex software.
The tuition fee is directly sent to the university from your Avanse Loan Account. The Living Expenses are generally directed to the student’s bank account. If the student lives in the university, then the rental expenses will be sent to the university, as per the requirements.
The student should know that the Education Loan from Avanse is very flexible and the amount can be disbursed according to student’s requirements.
Some countries have specific disbursement specifications. Read more about how Avanse Education Loans meet those requirements here!
Avanse Education Loan- Maximum Tenure
What is the maximum tenure of Avanse Education Loan?
Maximum duration of Avanse Loan
10 years
The maximum period for your Avanse Education Loan for abroad studies is 10 years. Failure to stick to the maximum period will incur penalizing charges.
Wondering how WeMakeScholars assists you in the processing of your Avanse unsecured education loan? Read this!
There are several options to pay off your Avanse Education Loan. The most common method of Avanse Loan Repayment is to pay partial interest while the student is studying. The rest of the money is paid as part of the EMI on compound interest terms after the student has completed his course.
Another option is to to repay your education loan without security in Avanse is topay the whole simple interest on the disbursed amount while the student is still studying. EMIs will begin after course completion and will be carried out on compound interest.
The final method is to pay full EMI from the month following the disbursement. That is, while the student is still studying.
The first option of patial payment is most commonly opted by students taking a collateral free education loan to study abroad.
Contact us to get a deeper understanding of the repayment options in Avanse Loans.
Avanse Education Loan Margin
Does Avanse charge a loan margin?
Loan Margin for Avanse Education Loan
0%
There is no loan margin for an unsecured education loan from Avanse. This advantage is solely claimed by NBFCs like Avanse. Whereas, if you take a loan from a private or public bank, with every disbursement, you will be required to pay about 10-15% of the amount you require.
Is the Avanse Education Loan Insurance compulsory?
According to the Avanse Education Loan agreement, the applicant must sign up for the Insurance policy which is provided by Avanse Financial Services Ltd. The Avanse Loan insurance fee is usually 1% of the loan amount. It must be paid after the Avanse Sanction Letter is issued to the applicant.
Pre-visa disbursement/ Preapproval of Avanse Loan
The university/ visa authority has some specifications regarding the time and stage of payments. Will Avanse Financial Services help me out?
Country
Specification of the Student
Will it be taken by Avanse?
USA
Needs to show loan letter to get i20 to confirm admission and book visa slot
Germany
Needs to create a blocked account of 7-8 L to be used as living expenses. Cannot apply for visa before this.
Canada
Needs to pay first-semester tuition fee and need to create GIC account of 20,000 CAD to show living expenses
New Zealand
Need to set aside 15,000 NZD under the FTS scheme to show as living expenses
Australia
Needs to pay 1st semester tuition fee and also set aside Rs. 10 Lacs to show as living expenses.
Avanse Education Loan for USA: For higher studies in USA, many universities insist that the student submits a financial statement as soon as his admission is confirmed. Only then can he apply for i20. In these cases, Avanse does provide a pre-approval sanction letter which is accepted by the universities.
Avanse Education Loan for Germany:Avanse Education Loan rules allow for disbursal of money for the creation of Blocked account.
Avanse Education Loan for Canada: The payment of first-semester fee and creation of GIC account to show first year living expenses is a requirement that is mostly from Canadian colleges and not universities. Nevertheless, Avanse Education Loan will disburse the amount according to the student’s requirement.
Avanse Education Loan for New Zealand: Disbursal of money for New Zealand cases by Avanse Financial Services are rare, but can be considered if the student’s profile is outstanding.
Avanse Education Loan for Australia: The number of sanctioned cases of Avanse Education Loan for Australia are rare, but can be considered on a case by case basis.
Is there any Avanse Contact number for resolving issues?
When students apply for Avanse Education Loan through WeMakeScholars, they also act as mediators in case there is any disagreement or doubts of any kind. Your financial counselor will be the point of contact and will resolve any issue that might crop up on your behalf, as you try for an education loan in Avanse.
The Special WeMakeScholars Advantage to your Avanse Education Loan Application
How does WeMakeScholars help me in my Avanse Loan processing?
Here are some of the benefits when you process your Avanse Education Loan for Abroad Studies with WeMakeScholars:
Lower Rate of Interest: Since WeMakeScholars is funded by the Digital India Campaign of the Central Government of India, we automatically connect you only with the digital team of Avanse Financial Services Ltd. There is an automatic reduction of upto 0.5% in your Avanse Education Loan Rate of Interest when you go through the digital team. Fill this Avanse Education Loan Form to be connected with the Digital team and get the lowest ROI possible for your profile!
Lower Processing Fee: If the student goes himself, the Processing Fee can sometimes get as high as 2% of the loan amount. However, since WeMakeScholars shares a longstanding bond with the internal digital team, the Avanse Education Loan Processing Fee is always lower for the students connected by us.
Free unbiased guidance: Since WeMakeScholars is funded and supported by the government of India and since it currently works with over 10 banks, NBFCs and other financial institutions, our financial counselors will be in a position to tell you exactly which financial institution/ loan scheme works best for your particular profile! To top it all, our services are completely free.
