Published date: 16 Sep 2020 Updated on: 16 Sep 2020 Non-Banking Financial Companies (NBFCs) are far more flexible than any other traditional lender in providing education loans to students who are unable to pledge any security. They also top the list of lenders that offer customized loan options. Avanse is one such education-focused NBFC that has assorted education loan options for students seeking to fund their education in India and Abroad. Established in 2013, Avanse has a wide range of solutions for school education to post-graduation. They support more than 45 countries providing financial solutions to students to study abroad. One of the key benefits of the Avanse Education loan is is the high approval rate. So there are more chances of getting the loan approved from Avanse than most of the other lenders in the market. If you are also looking for an education loan for your abroad studies (secured or unsecured), you must check your loan eligibility to know whether or not you are eligible for a study abroad loan. What Are The Steps Taken Before The Avanse Education Loan Process? The Avanse Education loan process has only 4 easy steps - Apply For The loan - You can apply for the loan on GyanDhan’s online portal after discussing the different types of loans offered by Avanse and get a deeper understanding of the process. Our executives will walk you through the Avanse education loan application process and help you apply for the loan. You can also apply for the loan before you enroll in any institute. Submit The documents - You will have to submit the required documents for the loan application to be processed further. All the documents can be uploaded on GyanDhan’s portal along with the application form. This step becomes infinitely easier as we provide students with a customized document checklist. Loan Offer Letter - Once the application and documents are verified, Avanse will issue an in-principle approval through a loan offer letter. It will include the loan amount you qualify for, any case-based documents required, and other details of the loan. This loan offer letter or the Avanse education loan sanction letter can also be used as a source of funds during your admission process. Loan Agreement - The next step entails verification of details such as admission confirmation, along with admission details of the university/institute, course duration, commencement, fee schedule, etc. The mentioned details have to be submitted after receiving the Loan Offer letter. Once all the conditions are met, Avanse will send a Loan Agreement to the student for review. It will contain all the terms and conditions of the loan. Students are advised to read the agreement carefully as it will dictate their financial liability for the entire loan tenure. Students have to return the agreement quickly after signing it, along with original or verified copies of the documents that are required prior to the disbursement of the loan. What Are The Avanse Education Loan Documents Required For The Loan Disbursement? Loan application form with a signed photograph KYC documents of the applicant and the co-applicant - includes PAN card, Aadhar card, Passport. Ownership proof - can be the latest electricity bill, House Tax receipt. Academic documents - include mark sheets of 10th, 12th, and graduation. Test scorecard copies of GRE/TOEFL/IELTS, if applicable. Proof of Admission Fees structure The co-applicant will have to submit 9-12 post-dated cheques as security, in case the co-applicant is unable to make an interest payment in a particular month. NACH form - It will be attached to the loan agreement booklet applicants receive. Applicants can complete this step online, which will take a maximum of 15 minutes to complete. Signature verification from the bank. Repayment account documents - at most 4 cheques have to be submitted. The cheques should be of the bank from where the EMI payment will be made. In the case of Pre-Visa disbursement, an undertaking has to be submitted. Financial Documents of the Salaried Co-applicant - 3 months payslips and proof of any other additional source of income 6 months updated bank statement of salary account Latest Form 16 and ITR Relationship proof (with the applicant) Financial documents of self-employed co-applicant would be based on the type of business - Private Limited Company, Partnership Firm, or Proprietorship. There might be some subjective conditions that would require additional case-based documents. The list will be shared with the applicants, which they will have to get notarized on stamp paper. Check Your Avanse Education Loan Eligibility Apply Here What Is The Avanse Education Loan Disbursement Process? The Avanse loan disbursement process is clear and straightforward. The loan amount is disbursed in INR. The loan amount can be provided by a DD (demand draft), cheque, or transferred electronically. The easiest and most preferred method of disbursement is getting the loan amount transferred electronically to a co-applicant’s account. Tuition Fees - the tuition fees and hostel fees are directly transferred to the educational institution, in installments, as per the requirement. If The Student is Living Off-campus - the loan amount for the off-campus accommodation will be transferred to the co-applicant’s account. Other Expenses - the loan amount related to other expenses such as the purchase of equipment, books, etc. will be transferred to the co-applicant’s account. It will be disbursed in installments throughout the study period. As per the loan agreement, students can also request for the loan amount to be transferred on a third party FOREX card. What Are The Features Of The Avanse Education Loan? Loan Amount - There is no cap on the maximum amount that can be borrowed from Avanse. In most cases, it is INR 40 lakhs. The amount, however, depends on multiple factors such as the academic performance of the student, target course and country, co-applicant’s ability to repay the loan, etc. Interest Rate - The Avanse education loan interest rate is calculated as - Avanse Base Rate + Spread. The current base rate is 12.65%. The spread is calculated based on the case. Avanse offers a floating rate of interest, which is calculated using a Simple Interest Rate. Eligibility - The Avanse education loan eligibility is as follows - The student must be an Indian citizen and 18 years old or above There must be an unconditional admission letter from the institute before the final disbursement of the loan. The loan has to be co-signed by an earning co-borrower in India. The co-applicant must have a bank account in India with cheque writing facilities. Processing Fees - Avanse charges a processing fee of 1%-2% of the loan amount. It is calculated on a case-to-case basis with the final amount being calculated at the time of processing the loan application. Repayment Tenure - The maximum loan tenure is 10 years, with a grace period of 6 months after the course is complete or 3 months after getting the job. What Are The Benefits Of The Avanse Education Loan? Expenses Covered - An Avanse Education loan will cover 100% of the expenses incurred. The loan coverage includes full tuition fees, living expenses, and also traveling expenses. Different Types of Loans - Avanse offers 5 types of education loans, namely - Pre-Admission loan, Pre-Visa Loan, Bridge Loan, Fast-Track Loan, and Certificate of Availability of Funds. Students can choose any loan type and customize it further to suit their needs. Flexible Loan Repayment Options - Students have the option to set-up their repayment schedule as per their convenience. They also have the option to make Interest or partial interest payments during the course duration. In addition, Avanse offers the option to make EMI repayments during the study period. Loan Sanction Before Admission - Students can apply for an education loan even before they have secured admission to a university. In fact, Avanse offers a Certificate of Availability of Funds to students that can be presented at the time of admission. Need An Education Loan For Abroad Studies? Fill this form and get in touch with an expert What’s The Advantage Of GyanDhan Gateway For The Education Loan? An Avanse Education loan is one of the preferred education loans from NBFCs. To help prospective students with Avanse Education loans, GyanDhan tied up with Avanse. Our Education Loan Counselors will help you with the loan application process, documentation process, and disbursement of the loan. Our aim is to fast-track the loan process with minimum speed bumps and delays. Our Education loan counselors go over and above to solve any issue that crops up and ensures that the entire loan process is as smooth and quick as possible. Want to discuss anything related to Avanse Education Loans or study abroad loans in general, please post it in the discussion section below! With GyanDhan, you will be able to relax and have a tension-free education loan journey. Moreover, you can keep track of Avanse loan application status on your GyanDhan account’s dashboard. Check your loan eligibility now and start your hassle-free loan Avanse Education Loan process now!
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/avanse-loan-disbursement-process