What is an education loan?

Are you aware of the fact that the cost of education has increased drastically over the past few years. Did you ever think what can be the possible reason contributing to this change? As the economy and double-digit inflation took hold, college tuition and fees climbed rapidly to match or exceed inflation. Also, nowadays, educational institutions offer a plethora of choices in terms of subjects, courses and degrees. The awareness on educational degrees have increased to a great deal which in turn amplified its demand and student’s aspiration to achieve them. Hence, to give deserving students a chance, institutes are reinforcing strict measures to select candidates and high demand is contributing towards increased pricing. In such a scenario, your parents usually consider liquidating their savings to help you fulfil your dreams. But the ideal way to achieve your academic aspiration is to opt for an education loan and reap the multiple benefits it offers.

So, an education loan is a sum of money borrowed to finance post-secondary education or higher education-related expenses. It is intended or designed to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree. Education loans are also often referred to as study loans or student loans.

What are the benefits of taking an education loan?

According to research reports, an average Indian household spends 13% of its annual income on higher education fees per child. And knowing about the rising cost of education you can realize how much your parents need to spend from their savings to help you achieve your dreams. Have you ever thought about the fact that what if you could fund your own education? This is possible with the help of a student loan. Repayment of the loan amount is often deferred while students are in college. This period is often referred to as a “grace period”. This method of funding your education helps you earn the self-made batch. Some benefits it offers are:

It helps you become financially independent

An education loan also helps you preserve your family savings which can be used for future contingencies

At the same time, it builds a positive credit score which ensures easier access and better deals on your future loans

Education loans from financial institutions like Avanse Financial Services covers the holistic cost of education

It also provides proof of funds & living expenses, regardless of whether you are planning to study in India or study abroad

You also get enough time to comfortably repay the education loan

How to apply for a student loan?

There are various financial institutions offering student loan in the market such as banks, NBFCs

The application process for an education loan differs slightly from lender to lender

At Avanse, we make the application process simple and quick. In fact, you just need to keep in mind 4 steps:

Step 1: Reach out to us by visiting our branch or website

Step 2: Fill a simple form

Step 3: Provide all the necessary & relevant documents

Step 4: Once your documentation is done, your loan will be disbursed

To make things slightly more easier, we also provide doorstep services for our educational loans

We will send one of our representatives to your home to help you fill all the forms and collect all the required documents. They will hand-hold you through the entire application process to ensure things are hassle-free and convenient

What are the eligibility criteria for an education loan with Avanse Financial Services?

Student Eligibility

The student should be a citizen of India

He/she has to be 18 years old or above

There must be confirmed admission in the Institute before final disbursement of the education loan

The student loan must be co-signed by an earning co-borrower in India

Co-borrower Eligibility

The co-borrower must be an Indian citizen and could be a parent, sibling, legal guardian, or a relative

The co-borrower must have a bank account in any bank in India, with cheque writing facilities

The co-borrower would necessarily be the primary debtor

Courses

Study abroad loan: Graduation/Post-graduation for job oriented professional/technical courses offered by reputed universities outside India as well as courses and universities approved by Avanse for education financing

Study in India loan:

Graduation, post-graduation and professional degree/diploma courses conducted by colleges/universities approved by UGC/AICTE/IMC/Govt. etc.

Technical/professional courses like engineering, medicine, law, management, aviation etc.

Degree/diploma courses offered by autonomous institutions like IIT, IIM etc. and approved by Avanse Financial Services Ltd.

Courses offered in India by reputed foreign universities

Vocational training, executive programs and other courses that have been approved by Avanse Financial Services Ltd.

What are the costs covered by a study loan?

Avanse Financial Services covers your entire student life journey. Right from the course fee to the purchase of study material, we take care of everything. Appended is a rough list of expenses you can get covered with our loan for higher education abroad:

The course fees

Purchase of books, study material, computers and project expenses

Traveling expenses for students (for abroad destinations)

We also cover your insurance premium (for abroad destinations)

Caution deposit, building fund, entrance exam fees, the cost of prep tests and entrance exams, consultation fees, etc.

We provide 100% financing. This ensures that all your expenses are taken care of. Therefore, instead of worrying about funds, you can focus fully on your studies. We will handle the costs for you.

What are the documents required for a study loan?

Here is a list of some of the documents that you will need:

Your KYC

All your educational documents

The details of the cost of your course

The KYC of the co-borrower

The income documents of the co-borrower

Collateral documents (if it is a secured loan)

Please note that this is an overview of the documents generally required for an Avanse Education Loan. For a more detailed list specific to your needs, kindly write to us at wecare@avanse.com and we will be happy to assist you further.

What is the interest rate charged for a study loan?

Avanse Financial Services always aims to offer students competitive interest rates on Education loan

The rate of interest on loan is calculated as: Interest Rate = Avanse Base Rate + Spread. Our current Base Rate is 12.65%

The Spread is floating and is based on analysis of the overall credit and course profiling

Rate of interest on student loan will be floating in nature

Interest is calculated using Simple Interest Rate with Monthly rest

If you want to enjoy lower study abroad loan interest rates, you can choose to provide some sort of collateral to secure your loan

Avanse has fulfilled education dreams of ~1Lac academic aspirants across 12,000+ institutes and courses across 50+ countries. The organization has also provided growth and working capital to ~500 educational institutes catering to over 5.5 lakhs students. It is also a pioneer in the industry to start funding non-conventional courses such as aviation, film-making, animation, music, robotics & industrial automation to name a few. The service proposition ‘speed to market’ helps us sanction loan amount within 72 hours of application and our product proposition covers the holistic cost of education. To know more about our customized financing solutions, please visit our website www.avanse.com. You can also write to us at wecare@avanse.com. We will be happy to assist.