Interest on the loan is calculated from the date of disbursement, that is, the day the funds are credited to your bank account.
We facilitate disbursement into a bank account, where a lien in Avanse’s favour can be marked to ensure the end use of the loan is monitored (i.e., the designated bank account).
A lien is a temporary hold on your loan funds in the designated bank account, ensuring proper use for academic expenses. A loan is disbursed based on the sanction terms. The funds deposited in the designated bank account are released for the specific use for which they are granted.
The education loan amount usually includes the following:
Yes. Interest will be charged on the disbursed funds irrespective of your visa status (approved or rejected). Interest is charged from the date funds are credited to your designated bank account. For example, if the loan amount is disbursed on 25 October 2025, the interest on the loan will be charged from 25 October 2025, itself, irrespective of your visa status.
There may be a difference between the disbursed loan amount and the amount credited to your designated bank account because certain fees or charges may be deducted for payment to third- party at your behest.
For instance, insurance premiums, value-added service (VAS) charges, or legal charges (if applicable) are included in the total disbursed amount but deducted for payment to your third-party service provider before crediting the funds to your bank account for other education costs.
As you are aware, the amount credited to the designated bank account is for specific purposes. To ensure that the amount credited is utilised for the specified purpose, the said amount is lien-marked in the designated bank account. For remittance of tuition fees and living expenses, the abovementioned lien needs to be removed. You need to provide specific documents depending on your academic progress. The requirements are as follows:
Note: Upon receipt of the documents, they will be verified, after which the lien will be removed in accordance with the applicable terms and conditions.
Yes. Payment of the loan instalment will be as per your repayment schedule. It can begin even before the lien on your loan amount is removed, since the funds have already been disbursed to your bank account. The lien is maintained only for a limited period to monitor the end use of the loan proceeds.
Yes. Interest is calculated on your outstanding loan amount during the moratorium/grace period. In the case of Simple Interest (SI) payments, you are required to pay only the interest amount on a monthly basis. In the case of Partial Simple Interest (PSI) payments, you are required to pay a portion of the total interest amount (as per the repayment schedule) and the unpaid interest amount is added to your outstanding loan amount on a monthly basis. Accordingly in case of PSI, monthly installment is calculated on the outstanding loan amount upon adding the balance portion of the unpaid interest i.e. interest capitalization.
A NACH (National Automated Clearing House) mandate is a simple and secure authorisation you give to your bank. It allows Avanse to automatically collect your monthly EMIs directly from your bank account on the due date. Think of it as setting up an automatic, recurring payment for your loan. It’s a “set it and forget it” instruction that ensures your EMIs are paid on time without any manual effort from your side.
One of the simplest ways to ensure worry-free repayment is by registering your NACH (National Automated Clearing House) mandate. This enables automatic deduction of your monthly instalments from your bank account on the due date.
Yes, you can share your request at wecare@avanse.com to update or swap your NACH mandate. If you are switching to a new bank account, the request will go through our internal approval process to ensure security. Once approved, the new mandate will replace the old one, and your EMIs will continue seamlessly from the updated account.
Yes. You can return the funds from the disbursed loan amount. This will be treated as part payment against your outstanding loan balance. To proceed, please write to us at wecare@avanse.com for assistance.
A part payment is first used to clear any overdue amounts, with the remainder reducing the principal outstanding (POS). You then have the choice to either:
There are no foreclosure charges for closing your loan early in case of a floating rate of interest. You only need to settle the foreclosure amount (outstanding principal, interest, and any overdue amount), including charges applicable as per the schedule of charges, if any.
We understand that you would have availed the credit into your bank account to show sufficient availability of funds to meet your education cost and associated living expenses. In the event, there are no further requirements to meet the specified purpose, then you shall repay it with interest, subject to applicable terms. Such events can be:
Your credit score indicates your creditworthiness based on your financial records with the regulated credit bureaus. A high credit score implies that you have good credit/financial history. Any delay in paying the EMI or non-repayment of the loan may have a direct negative impact on your credit score as well as that of the co-applicants involved. This is because we are required to report loan repayment status to credit bureaus in accordance with regulatory guidelines.
You can access your Statement of Account through several channels:
You can access both documents by visiting our website. Here are the links for your reference:
Yes. You have to inform us as soon as you know whether your student visa has been approved or rejected. Also, keeping us updated helps us manage your loan effectively and guide you on the next steps.
If your visa is rejected, we will assist you with the loan foreclosure process to ensure a smooth account closure.
To inform Avanse, you can:
Yes. As also explained under question no. 1, you need to pay interest on your loan on the disbursed funds, even if your visa application is still in process.
Think of VAS as optional products and services designed to support your educational journey. These are non-loan solutions available as per your suitability and choice for your convenience and protection, such as wellness packages, insurance, forex cards, and more.
Our role is to be a facilitator. We connect you with third-party service providers for these optional services, such as wellness packages, insurance plans, forex cards, student discount cards, and more.
documents for value-added services (such as policy details or card information) are issued directly by the third-party service provider that offers the service. You will have an independent relationship with the VAS service provider, subject to the relevant T&C agreed between you and the VAS service provider.
If you’re interested, please speak with your Avanse representative for more details.
Avanse may act as a facilitator for your foreign exchange (Forex) remittances. We have partnered with Authorized Dealers (ADs) licensed by the RBI to offer you reliable and convenient forex solutions, such as currency exchange and outward remittances. You will have your independent transaction with the AD for forex-related services.