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Features of Avanse Financial Services Unsecured Education Loan

  • Comprehensive Financial Coverage: 100% Financing for Education Costs, including tuition fees, accommodation costs, living expenses, travel expenses (up to INR 75,000 for international studies), and the cost of learning devices such as laptops or books. The zero-margin policy means no upfront contribution from students, offering a complete funding solution.
  • Support for Additional Expenses: The loan covers up to 75% of living expenses, provided they do not exceed 20% of the total tuition fee. Additionally, up to 10% of tuition fees can be allocated for refundable deposits, such as caution or building funds, with valid bills or receipts.
  • Flexible Loan Amounts: No upper limit on loan amount. The minimum loan amount is INR 1 lakh, with unsecured loans typically going up to INR 75 lakh, based on the student’s qualifications, academic profile, and co-applicant’s financial standing.
  • Customized Loan Solutions: The loan amount is personalized based on the student’s academic record, course ranking, and co-applicant’s creditworthiness, ensuring alignment with the specific needs of the student and the cost of the program.
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    • Competitive and Floating Interest Rates: Competitive interest rates range from 10.5% to 16.5% per annum, based on the Avanse Base Rate (currently 14.55% as of December 2024) plus a floating spread. Rates fluctuate with market conditions, offering potential savings if rates decrease.
    • Simple Interest Calculation: Interest is calculated with a simple interest rate on a monthly rest basis, making it easier for borrowers to understand and manage repayments.
    • Flexible Repayment Options: Avanse offers a moratorium or holiday period during which no repayments are required. This period extends through the study duration plus an additional 6 months or 3 months after securing employment, whichever comes first. This grace period allows students to focus on their education and job search without immediate repayment pressure.
    • Customizable Repayment Tenure: The loan tenure for unsecured education loans can extend up to 15 years, providing ample time for repayment. Borrowers can choose from various repayment options, including partial EMI (paying only interest during the study period) or full EMI (principal and interest) starting immediately or after the moratorium. This flexibility accommodates diverse financial situations and preferences.
    • Early Repayment Options: Students can begin making payments during the moratorium period if they choose, either by paying simple interest monthly or starting principal and interest repayments. This option can reduce the overall interest burden and build a positive credit history, which is beneficial for future financial endeavors.
    • Quick and Hassle-Free Processing: Avanse is known for its swift loan processing, with unsecured loans typically sanctioned within 72 hours, provided all eligibility criteria are met and documents are submitted on time. The disbursement process takes 4-6 working days, ensuring students meet tight deadlines for visa applications or university fee payments.
    • Online Application Process: The application process is user-friendly and primarily online, allowing students to apply from the comfort of their homes. Avanse executives provide doorstep services to assist with documentation and ensure a seamless experience. This convenience is particularly beneficial for students with busy schedules or those applying from remote locations.
    • Support for Diverse Courses and Institutions: Avanse’s unsecured education loan supports a variety of courses, including undergraduate, postgraduate, and professional degree/diploma programs approved by UGC, AICTE, IMC, or the Government of India. It also covers technical courses like engineering, medicine, management, law, and aviation, as well as vocational training, executive programs, and non-traditional courses like photography or filmmaking.
    • Global Institution Coverage: The loan is available for studies at over 1,580 institutions across 49 countries, including mainstream STEM and MBA programs, as well as off-beat courses like food technology and vocational programs. This extensive coverage ensures students can pursue their preferred courses at reputed universities worldwide without financial barriers.
    • No Collateral Needed: As an unsecured loan, Avanse’s education loan does not require pledging tangible assets (e.g., property, land) or intangible assets (e.g., fixed deposits). This feature makes the loan accessible to students from diverse financial backgrounds, eliminating the need to own valuable assets to secure funding.
    • Co-Applicant Requirement: While collateral is not required, a financially stable co-applicant (e.g., parent, sibling, or blood relative) is mandatory. The co-applicant’s credit score and income (minimum INR 20,000 monthly for master’s programs) are evaluated to ensure repayment capacity. Certain waivers, such as exemptions from income proof or low CIBIL scores, may apply for applicants to top-ranked universities.
    • Additional Benefits and Services: Avanse offers pre-admission and pre-visa disbursement loans, particularly for master’s-level STEM programs in the USA. This feature allows students to secure funding before final admission or visa approval, helping them meet university financial requirements for I-20 issuance or other documentation.
    • Score-Based Benefits: Avanse provides score-based benefits, rewarding students with strong academic profiles or high entrance test scores with potentially lower interest rates or higher loan amounts. This incentivizes academic excellence and enhances loan accessibility for high-performing students.
    • Personalized Loan Counseling: Avanse offers personalized counseling, either in-person or via phone, to guide students through the loan process. This service addresses queries, clarifies terms, and ensures students make informed financial decisions, enhancing their overall experience.
    • Insurance and Processing Fees: A mandatory credit life insurance premium, ranging from 1.25% to 1.5% of the loan amount, is charged to protect against unforeseen circumstances. An optional overseas health insurance premium of approximately INR 40,000 is also available for international students, providing additional security. The processing fee for unsecured loans ranges from 1% to 2% of the loan amount, payable before receiving the sanction letter. This fee is negotiable and covers administrative costs, ensuring transparency in the loan process.
    • Student-Centric Approach: Avanse prioritizes the student’s employability potential over the co-applicant’s credit score. Factors such as past academic performance, entrance test scores, university pedigree, and course employability are evaluated to determine loan eligibility, ensuring a future-oriented approach.
    • Doorstep Service and Transparency: Avanse’s customer-centric approach includes doorstep document collection and transparent communication throughout the loan process. Representatives provide detailed explanations of terms, interest rates, and repayment options, fostering trust and clarity.
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Benefits of Avanse Financial Services Unsecured Educational Loan

  • Collateral-Free Financing: No Need for Asset Pledging. One of the most significant advantages of Avanse’s unsecured educational loan is that it does not require students to pledge collateral such as property, fixed deposits, or other assets. This feature is particularly beneficial for students from families that may not have substantial assets to offer as security, making higher education accessible to a broader demographic. By eliminating the need for collateral, Avanse reduces financial barriers, allowing students to focus on their studies rather than worrying about securing assets.
  • Up to INR 75 Lakhs Loan Amount: Avanse offers unsecured loans with a maximum limit of INR 75 lakhs, providing substantial funding for both domestic and international education. This high loan ceiling ensures that students can cover expensive programs, such as master’s degrees in STEM fields or MBAs at prestigious universities, without needing to provide security. The flexibility in loan amount makes it easier for students to pursue their dream courses at top institutions worldwide.
    • Support for Additional Expenses: Beyond tuition, Avanse’s unsecured loans cover ancillary costs critical to a student’s academic journey. For instance, up to 75% of living expenses and 100% of refundable deposits are included.
    • Flexible Repayment Options: Moratorium Period for Financial Ease. Avanse offers a moratorium period during which students are not required to make repayments.
    • Extended Loan Tenure Up to 17 Years: With a repayment tenure of up to 17 years, Avanse’s unsecured loans provide students with the flexibility to repay at a comfortable pace.
    • Customizable Repayment Plans: Avanse allows students to tailor repayment plans to their financial circumstances.
    • Quick and Hassle-Free Process: Rapid Loan Sanction Within 72 Hours. Avanse is known for its swift loan processing, with sanctions possible within 72 hours if eligibility criteria are met and documents are submitted on time.
    • Flexible Repayment Options: This period typically spans the duration of the study plus an additional 6 months or 3 months after securing employment, whichever comes first.
    • Simplified Application Process: The application process for Avanse’s unsecured loans is straightforward, requiring only four steps: online application, counseling with an Avanse representative and loan approval.
    • Pre-Admission and Pre-Visa Loan Options: Avanse offers pre-admission and pre-visa loans, allowing students to secure funding before final admission or visa approval.
    • Student-Centric Approach: Focus on Employability Potential. Unlike traditional lenders that heavily weigh the co-applicant’s credit score, Avanse prioritizes the student’s employability potential.
    • Personalized Loan Counseling: Avanse provides personalized counseling, either in-person or via phone, to guide students through the loan process.
    • Support for Diverse Courses and Destinations: Avanse’s unsecured loans cover a wide range of courses, including STEM, MBA, vocational training, and non-traditional programs like food technology or filmmaking.
    • Financial and Credit Benefits: Competitive Interest Rates. Avanse offers competitive floating interest rates ranging from 10.5% to 16.5%, calculated as the Avanse Base Rate plus a spread based on credit and course profiling.
    • Building Credit Score:This long-term benefit supports students’ financial independence and stability.
    • No Financial Dependence on Family: By opting for an unsecured loan, students can finance their education independently, preserving their family’s savings for other priorities like retirement or emergencies.
    • Additional Advantages: Avanse’s doorstep service ensures that executives visit students’ homes to assist with documentation and application processes, reducing the need for multiple branch visits.
    • No Prepayment Penalties: Avanse allows students to prepay their unsecured loans without penalties, providing flexibility to clear the loan early if financial circumstances improve.
    • Support for Non-Traditional Students: Avanse’s unsecured loans are available for part-time, online, and correspondence courses, as well as admissions through paid seats or management quotas.
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How to Apply for Avanse Financial Services Unsecured Education Loan

  • Step 1: Fill Out the Online Application Form
    Visit the official Avanse Financial Services website (www.avanse.com) and navigate to the education loan section. Locate the online application form and provide the following details:
    • Personal information: Name, contact number, email address.
    • Educational details: Course, institution, country of study, and admission status.
    • Loan requirements: Desired loan amount and purpose (e.g., tuition, living expenses).
    • Co-applicant details: Name, relationship, and contact information.
    After submitting the form, click the “Apply Now” button. An Avanse representative will contact you within 24–48 hours to schedule a discussion.
  • Step 2: Schedule a Face-to-Face Discussion
    The representative will arrange a meeting, either virtually or in-person, to discuss your education plans and loan requirements. This is an opportunity to:
    • Clarify doubts about the loan process, interest rates, and repayment options.
    • Understand the charges, including processing fees (1–2% of the loan amount) and mandatory credit life insurance.
    • Receive guidance on completing the KYC form and submitting documents.
    The representative will collect initial documents during this meeting or provide instructions for submission.
  • Step 3: Submit Documents
    Submit all required documents to the Avanse representative or upload them through the Avanse online portal if instructed. Ensure accuracy and completeness, as incomplete documentation can delay the evaluation process. Avanse may request additional documents based on your profile or the course/university.
  • Step 4: Loan Evaluation and Approval
    Once documents are submitted, Avanse conducts a thorough evaluation, which includes:
    • Academic Assessment: Reviewing your academic records, entrance exam scores, and the reputation of the institution to assess employability potential.
    • Financial Assessment: Evaluating the co-applicant’s credit score (CIBIL), income stability, and financial history.
    • Course and University Profiling: Verifying the course’s job prospects and the institution’s ranking.
    The evaluation process typically takes 4–6 working days for unsecured loans. If approved, Avanse will issue a sanction letter detailing the loan amount, interest rate, repayment tenure (up to 15 years), and terms.
  • Step 5: Accept the Loan Offer and Sign Agreements
    Review the sanction letter carefully. If you agree with the terms, accept the loan offer by signing the loan agreement. The co-applicant must also sign the agreement, acknowledging their financial responsibility. Pay the processing fee (1–2% of the loan amount) and any applicable insurance premiums at this stage.
  • Step 6: Loan Disbursement
    After signing the agreement, Avanse disburses the loan amount in Indian Rupees. The disbursal process is tailored to the course and location:
    • Tuition and Hostel Fees: Transferred directly to the institution/university as per the payment schedule.
    • Other Expenses: Disbursed in installments to the co-applicant’s bank account over the course duration.
    • International Studies: For countries like the USA, funds may be disbursed to the student’s account for transfer to the university, while living expenses are credited separately.

Eligibility Criteria for Avanse Financial Services Unsecured Education Loan

  • Citizenship and Age:
    • Indian citizen with valid identity proof (PAN, Aadhaar, Passport, or Voter ID)
    • Minimum age: 18 years
    • Maximum age: Typically 35 years (additional credit insurance may apply for applicants over 30)
  • Academic and Admission Requirements:
    • Confirmed admission to a recognized institution in India or abroad
    • CAS letter or admission offer letter mandatory
    • Strong academic profile with consistent performance in 10th, 12th, and undergraduate (if applicable)
    • Valid entrance exam scores like GRE, GMAT, IELTS, or TOEFL (for international studies)
  • Course and Institution Eligibility:
    • Graduate, postgraduate, professional, technical, executive, and skilling programs
    • Preferred fields: STEM, MBA, vocational, aviation, robotics, filmmaking
    • Institutions must be approved by Avanse or affiliated with UGC, AICTE, IMC, etc.
    • Courses must have a minimum duration of 12 months (full-time, part-time, online accepted)
  • Country-Specific Criteria (for studying abroad):
    • Supported countries include USA, UK, Canada, Germany, Ireland, etc.
    • Not supported: Australia (due to NBFC restrictions)
    • Loan amounts: Up to ₹40–45 lakhs (USA), ₹15–25 lakhs (other countries)
    • Dollar Loans: Up to $91,000 (STEM), $121,000 (MBA) for listed US universities
  • Co-Applicant Criteria:
    • Mandatory Indian co-applicant: Parent, guardian, sibling, or relative
    • Must hold an active bank account and be financially stable
    • Income documents: ITR, salary slips, 6-month bank statements
    • For some schemes (e.g., Platinum/Titanium), co-applicant waiver possible if income > ₹12 LPA
  • Financial Evaluation:
    • Co-applicant’s financial background and credit score assessed
    • CIBIL score improves approval chances but not a sole deciding factor
  • Minimum Academic Qualification:
    • At least 10th grade pass
    • Higher qualifications needed for advanced programs
  • Employability Focus:
    • Evaluation based on academic merit, course employability, and university reputation
  • Documentation Readiness:
    • Complete documentation mandatory: academic, ID, admission, financial documents
    • Incomplete submissions may lead to rejections
  • Special Provisions:
    • Pre-admission/pre-visa loans for select STEM programs in the USA
    • Support for paid/management quota seats in India
    • Re-application allowed after rectifying prior rejection reasons
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Documents Required for Avanse Financial Services Unsecured Education Loan

  • Applicant’s KYC Documents:
    • Photo Identity Proof: PAN card, passport, driver’s license, voter ID card, or Aadhaar card
    • Address Proof: Recent utility bill, passport, driver’s license, or Aadhaar card
    • Passport-sized Photographs: Two to four recent photos of the applicant
    • Signature Proof: PAN card or banker’s verification (if required)
  • Co-Applicant’s KYC and Income Documents:
    • KYC Documents:
      • Photo Identity Proof: PAN card, passport, driver’s license, voter ID, or Aadhaar card
      • Address Proof: Utility bill, passport, Aadhaar, or driver’s license
      • Relationship Proof: Birth certificate, passport (with parent’s name), ration card, etc.
    • Income Documents (Salaried):
      • ITR for last 2 years
      • Form 16 for last 2 years
      • Salary slips for last 3–6 months
      • Bank statements for last 6 months
    • Income Documents (Self-employed):
      • ITR with computation for last 2 years
      • Audited Balance Sheet and P&L Account
      • Bank statements for last 6 months
      • Business proof: GST registration, license, etc.
      • Other income proofs (rent, dividends, etc.)
  • Academic Documents of the Applicant:
    • Marksheets & Certificates: Class 10, 12, and degree (if applicable)
    • Entrance Exam Scores: GRE, GMAT, TOEFL, IELTS, etc.
    • Admission Letter: From university with course and duration
    • Academic Gap Certificate: If applicable
  • Course and Fee-Related Documents:
    • Course Details: Name, duration, curriculum, mode of delivery
    • Fee Structure: Official breakdown of all fees
    • Living Expenses Estimate: For overseas study, up to 75% covered
    • Refundable Deposits: Bills for caution/security deposits
    • Travel Expense Proof: Airfare quote up to INR 75,000 (if applicable)
  • Post-Disbursal and Repayment Documents:
    • Signed Sanction Letter and Loan Agreement
    • NACH form for EMI auto-debit
    • Post-Dated Cheques: 9–12 from repayment account (if required)
    • Repayment Bank Account Details and Cheques
    • Fee Receipts for funds utilization confirmation
    • Co-Applicant Consent Letter
  • Additional Notes:
    • Prepare digital and physical copies of all documents
    • Ensure all documents are valid, updated, and clearly scanned
    • Contact Avanse support for clarification if needed
    • Submit promptly to avoid loan processing delays

Factors Affecting Avanse Unsecured Education Loan Approval

  • Academic Profile: Consistent academic performance across all levels boosts confidence in the applicant’s ability to complete the course and repay the loan.
  • Entrance Exam Scores: High GRE, GMAT, SAT, TOEFL, or IELTS scores improve the profile, especially for international courses.
  • Course and Institution Reputation: Preference is given to professional courses and reputed, accredited universities, particularly in countries like the USA, UK, Canada, or Germany.
  • Co-Applicant's Financial Profile: A CIBIL score above 700, stable income, and proper documentation of the co-applicant are essential.
  • Loan Amount: Up to ₹75 lakh available without collateral, with limits based on course, country, and financial profile.
  • Cost Coverage: 100% of education-related expenses including tuition, living, travel, and equipment are covered.
  • Interest Rates: Floating rates based on base rate + spread, typically between 10% to 16.5% depending on profile.
  • Processing Fees and Charges: Charges include 1–2% processing fee, credit life insurance, and optional overseas insurance.
  • Repayment Terms: Up to 15 years repayment with options for simple interest or partial interest during the moratorium.
  • Moratorium Period: Covers course duration plus 6 months or until job placement (whichever is earlier).
  • Employability Potential: Loans are favored for job-oriented programs, especially in STEM, management, medicine, or law.
  • Country of Study: Preferred countries include USA, UK, Canada, and Australia. Some countries have restrictions on NBFC loans.
  • Documentation: Comprehensive documents required, including academic, ID, address, and co-applicant financials.
  • Loan Processing Time: Loans are sanctioned in 72 hours and disbursed in 4–6 working days if documents are complete.
  • Customer Support: Doorstep services and personalized assistance improve the borrower experience, though clarity on terms is advised.
  • Course Duration: Shorter course durations may receive faster processing and approval due to lower overall loan amounts.
  • Loan Utilization Plan: Applicants who have a clear plan for how the loan will be utilized for tuition, fees, living expenses, etc., may have an advantage in the approval process.
  • Debt-to-Income Ratio: A low debt-to-income ratio of the applicant and co-applicant can improve loan approval chances, ensuring financial stability during repayments.
  • Financial Backing from University: Students with financial backing from the university (scholarships, grants) might receive favorable loan terms.
  • Co-Applicant’s Employment History: A stable and long-term employment history of the co-applicant adds credibility and strengthens the loan application.
  • Economic Factors: The current economic climate, including interest rates and inflation, may influence loan approval and terms.
  • Loan Repayment History: Previous successful repayment history of loans (personal or educational) by the applicant or co-applicant is seen as a positive factor.
  • Insurance Coverage: Applicants with insurance coverage (life, health, etc.) may be viewed more favorably as it indicates financial preparedness.
  • Risk Assessment: The lender’s risk assessment, based on the applicant’s and co-applicant’s financial stability and academic potential, plays a critical role in the decision.

Frequently Asked Questions (FAQs)

What is an unsecured education loan from Avanse Financial Services?
An unsecured education loan is a loan that does not require collateral or security. Avanse provides such loans based on the applicant’s academic profile, co-applicant’s financial strength, and chosen course/institution.
Who is eligible for an unsecured education loan from Avanse?
Indian students who have secured admission to recognized universities in India or abroad for higher education are eligible, subject to credit and academic assessment.
What is the maximum loan amount I can get without collateral?
The maximum unsecured loan amount depends on the student's profile, the course, and the co-applicant’s financials. It typically ranges up to ₹40 lakhs or more for premier institutions.
What is the interest rate for Avanse’s unsecured education loans?
Interest rates are floating and customized, generally starting from around 11.5%–14.5% p.a., depending on the risk profile of the borrower.
What documents are required to apply?
  • Admission letter
  • KYC documents
  • Academic records
  • Co-applicant’s income documents (ITR, salary slips, bank statements)
  • Passport (for overseas studies)
Is there a processing fee?
Yes, Avanse typically charges a processing fee, which ranges from 1% to 1.5% of the loan amount plus GST.
What expenses are covered under the loan?
Avanse’s education loan covers tuition fees, living expenses, travel costs, books, equipment, exam fees, and other academic-related costs.
What is the repayment tenure for an unsecured loan?
Repayment tenure can go up to 10–15 years, including the moratorium period, depending on the course and loan amount.
When does the repayment start?
Repayment typically starts after the moratorium period, which includes the course duration plus 6–12 months. However, simple interest or partial interest may be payable during the study period.
Is there a penalty for prepayment?
No, Avanse usually allows part or full prepayment without any penalty, but terms may vary, so it’s best to confirm during application.
Can I apply if I don’t have a co-applicant?
A financially strong co-applicant (usually a parent or guardian) is generally required for unsecured loans. Exceptions are rare.
How long does loan approval take?
Loan processing can take 7 to 10 working days after submission of all required documents and a completed application.
Can I get an unsecured loan for all types of courses and countries?
Avanse provides unsecured loans for a wide range of undergraduate and postgraduate courses in select institutions. Availability may vary based on the country, course, and university.

List of Avanse Financial Services Unsecured Education Loans

  • Undergraduate Unsecured Education Loan
  • Postgraduate Unsecured Education Loan
  • Professional Course Unsecured Education Loan
  • Career-Oriented Certification Unsecured Education Loan
  • Study Abroad Unsecured Education Loan
  • Vocational Training Unsecured Education Loan
  • Diploma Course Unsecured Education Loan
  • Executive Education Unsecured Education Loan
  • Skill Development Unsecured Education Loan
  • Distance Learning Unsecured Education Loan
  • Part-Time Course Unsecured Education Loan
  • Doctoral/PhD Unsecured Education Loan
  • Competitive Exam Preparation Unsecured Education Loan
  • Technical Training Unsecured Education Loan
  • Short-Term Course Unsecured Education Loan