Are you planning to fund your higher studies abroad with an unsecured education loan? Are you looking for a hassle-free education loan process? If your answer to all these questions is ‘yes’, then an Avanse education loan without collateral is your one-stop solution. 

Avanse Financial Services is one of the most prominent NBFCs (Non-Banking Finance Company) functioning in India. The NBFC mainly grants non-collateral education loans to students who wish to fund their higher education abroad or in India with the help of one. Avanse student loan schemes are specially designed for students who have enrolled in top-ranking courses in some of the best universities throughout the world. The financial team of WeMakeScholars shares a long-standing association with Avanse Financial Services.

One of the biggest limitations of applying for an Avanse education loan without collateral is that the NBFC does not have branches in certain parts of the country. So, if you are looking to apply for an Avanse education loan without collateral but are not able to do so due to the place in which you stay, do get in touch with the financial team of WeMakeScholars. Students from all over India may avail the services of WeMakeScholars for unsecured education loans from NBFCs like Avanse Financial Services.

Avanse education loan basic details

Avanse Financial Services Ltd. is one of the NBFCs that offer collateral-free education loans with the following terms:

Avanse Education Loan Parameters	Values
Eligible courses	Masters & Diploma programmes in any of the STEM programmes offered by reputed universities of certain notable countries. Professional & Technical courses like MBA and Masters are given due preference.
Eligible Countries	USA, Germany, Canada, Ireland
Avanse Education loan Rate of Interest	Varies between 11% and 15%
Maximum loan amount	Rs.60 Lakhs (Unsecured edu loans) loan amounts vary for collateral education loans
Avanse loan repayment	Simple interest levied in the course duration
Avanse Education loan processing fees	Varies between 1%-2% of the total loan amount
Loan Margin	Nil
Avanse Education loan maximum loan tenure	10 years

• Eligible courses for a collateral free education loan from Avanse

Avanse Financial Services Ltd. caters to the funding requirements of students who wish to fund their higher education course in any of the fields belonging to the STEM (Science, Technology, Engineering and Math) category. Students who wish to fund their courses belonging to other professional fields such as Arts & Humanities, pilot training, and license courses, etc. can apply for an Avanse education loan without collateral.

• Eligible countries for an unsecured education loan from Avanse

Students who wish to pursue their higher studies from any of the major countries mentioned in the table above are granted an education loan from Avanse. However, students who wish to study in countries other than the ones mentioned in the above table can also get unsecured education loans from Avanse, provided that their profile meets the loan eligibility criteria.

• Maximum Education Loan Amount from Avanse

The final unsecured education loan amount provided by NBFCs like Avanse depends on a lot of factors. The country of study chosen by the respective candidate plays the biggest role in determining this amount. The following table will give you an idea of the maximum education loan amount granted to students who wish to pursue their higher education in different countries.

Countries	Maximum Edu Loan Amount
Avanse education loan for USA	INR 75 Lakhs
Avanse education loan for Germany	INR 20 Lakhs
Avanse education loan for Australia	INR 30 Lakhs
Avanse Education loan for Ireland	INR 25 lakhs
Avanse education loan for Canada	INR 35 Lakhs

Avanse education loan processing fee

Close to 1% to 2% of the total education loan sanctioned is charged by Avanse as an education loan processing fee. 

According to the terms and conditions, candidates will have to purchase the education loan insurance as a form of security against their unsecured education loan. Buying insurance for your non-collateral education loan from Avanse is recommended. This is because if students are unable to repay their education loans due to certain unfortunate events, the burden of repayment does not fall on their families. Instead, the insurance money can be used for the same.

The loan insurance fee is 1% of the loan amount. It is also one of the conditions to be fulfilled for the loan.

Avanse education loan eligibility 

Like most NBFCs, Avanse Financial Services also have certain eligibility criteria set for students, as well as co-applicants. They are required to meet the following eligibility criteria in order to qualify for an unsecured education loan from Avanse Financial Services Pvt. Ltd.

Avanse Education loan eligibility criteria for students

1. The candidate should be an Indian citizen.
2. The candidate should have completed 18 years of age.
3. The candidate should have secured admission for any of the courses mentioned in the above table in a reputed university/college abroad. They should possess an admission letter at the time of applying.
4. The candidate should have passed the necessary qualifications to study in universities abroad, such as GRE, GMAT, TOEFL, IELTS, etc.

Avanse Education loan requirements to be fulfilled by co-applicants

1. The co-applicant should be an immediate family member of the candidate. 
2. Parents and siblings are the most preferred co-applicants. 
3. In rare cases, where both the parents as well as siblings of a candidate are unemployed or do not meet all the criteria, other co-applicants are accepted. 
4. A candidate’s in-laws (if married) and immediate relatives from the candidate’s maternal or paternal side can be considered as co-applicants for unsecured education loans from Avanse Financial Services 
5. Spouses are not eligible to be co-applicants as per the Avanse education loan terms and conditions.
6. The co-applicants must have a steady source of income. They can either be salaried professionals or self-employed.
7. The co-applicants CIBIL score must be above 700 in order to qualify for an Avanse education loan.

Avanse education loan documents

Candidates need to have sufficient knowledge about the education loan documents needed by Avanse to have an easy education loan process. The education loan documents checklist required by students contains the following documents. 

1. KYC documents such as Passport, PAN Card, Aadhar Card.
2. The scorecards of qualifying exams like GRE, GMAT, IELTS, TOEFL, etc.
3. Admission letter from the respective university/college.
4. Academic documents such as mark sheets of 10th & 12th grades, Graduation certificate, Postgraduation certificate (if applicable), etc.
5. 2 passport-sized photographs.
6. A document that states the expected financial requirements for the course duration. Mostly this is mentioned in the admission letter provided by the university/college.

Documents to be submitted by Co-applicants

1. Bank account statement for the previous 6 months.
2. If the co-applicant is a salaried professional, then they will be required to present the payslips of the previous 3 months to their lending authorities at Avanse.
3. Documents that can be presented as proof of residence (Aadhar card, Driving license, etc.)
4. PAN card and Aadhar card.
5. If the co-applicant is self-employed then they will be required to present a document that can be submitted as proof of business.

Avanse education loan interest rate

The education loan interest rate for Avanse falls in the range of 11% to 13.5%. The final rate of interest is decided after giving due consideration to a lot of factors. 

• The Candidate’s academic profile:
  A candidate’s academic profile is given a lot of consideration by Avanse. If their academics are good, then the Avanse interest rate can be negotiated. 
• The country and the course chosen for higher studies by the candidate:
  Avanse Financial Services Ltd. pays close attention to the country chosen by the candidate for pursuing their higher education. If the immigration laws of the respective country promise excellent opportunities of employment, the Avanse education loan rate of interest can be negotiated and reduced.
• The co-applicants financial details: 
  Candidates having co-applicants with strong financial profiles are given due consideration for concession in their rate of interest.

If you feel that your profile fits all the Avanse education loan eligibility criteria mentioned here then you may apply for it by getting in touch with the financial team of WeMakeScholars.

Avanse education loan disbursement

All transactions related to the education loan disbursement are conducted according to the standard Indian currency rates.

If candidates require their tuition fees to be transferred directly to their respective universities, or if any component of the education loan is to be transferred into an international bank account, Avanse takes the support of third-party money payment applications for the same purpose.

Otherwise, the education loan amount can be transferred either into the candidate’s personal Avanse loan account, which can be operated by candidates online, post their education loan disbursement.

The tuition fee component can be sent directly to their respective university through the Avanse loan account or through the candidate’s personal savings account. Again, this policy is subject to variations with respect to the timely modifications made to the rules regarding the education loan disbursement process.

The living expenses are disbursed directly into the co-applicants bank account.

If candidates choose to live within their university premises, then they have the option of requesting their rental expenses to be deposited directly into their university account.

Avanse Education loan pre-visa disbursement

The immigration laws of certain countries require international students to show proof of their living expenses before commencing their visa process. Students are deemed eligible for student visas only after fulfilling these financial pre-conditions. 

Students who wish to study in Australia, Germany, Canada, and New Zealand are required to deposit their living expenses for a year, along with the tuition fees for a semester and health insurance charges, way before they even begin the visa process. In the education loan process, students are often concerned about getting their living expenses disbursed in order to qualify for a student visa.

• Avanse Education loan for Canada:
  Students who aspire to study in Canada need to deposit their one year’s living expenses into a GIC account. This facility is also available from Avanse Financial Services Ltd.
• Avanse Education Loan For Australia: 
  Similar to the education loan process for Canada, Avanse also approves a pre-visa disbursement for students who are enrolled in Australian universities, as the Australian government also has a similar financial requirement from international students.
• Avanse Education loan for New Zealand: 
  Avanse also provides pre-visa disbursements to candidates who wish to fulfill their financial pre-conditions in order to qualify for a New Zealand student visa.

Avanse education loan repayment and maximum loan tenure

According to the terms and conditions by Avanse, candidates are supposed to start their loan repayment from the month following their education loan disbursement.

This interest component is calculated on the basis of simple interest and can be paid partially as well. According to the clauses stated in the Avanse education loan agreement, students are required to make regular payments of their interest. Failure to adhere to the same may invite additional penalties to candidates.

The EMI payment of the unsecured education loan from Avanse begins once the student has successfully completed his/her course.

The total tenure granted for Avanse loan repayment is 15 years. According to the Avanse education loan terms and conditions, this tenure cannot be extended further.

How many days does it take for an Avanse education loan sanction? 

Once the duly filled Avanse education loan application form is received by their office, the Avanse education loan sanction process does not take a long time.

Due to the absence of collateral security, the amount of paperwork involved in the Avanse education loan process is less. 

Depending on the candidate’s profile and provided that all documents have been submitted within a stipulated time frame, Avanse processes education loans within 8-10 days of submitting your application form.

Candidates may expect their Avanse education loan sanction letters to arrive within 8-10 days of submitting their education loan application form.