Dreaming of studying abroad but worried about funding? The Avanse Financial Services Abroad Education Loan is designed for Indian students seeking global education, offering flexible funding to cover tuition, living expenses, and even pre-visa costs. With over 1.8 million Indian students studying overseas as of 2025, the demand for such loans has never been higher.
In this blog, we’ll cover everything about the Avanse Abroad Education Loan, including loan features, eligibility criteria, required documents, interest rates, and repayment terms, as well as country-specific details.
Quick Highlights: Avanse Abroad Education Loan 2025
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Avanse Education Loan Eligibility Criteria 2025
To qualify for an Avanse Abroad Education Loan, students must meet specific eligibility requirements. These include age, academic background, admission status, co-applicant profile, and, depending on the loan, collateral requirements. Meeting these criteria ensures smooth approval and better interest rates.
1. Age Requirement
You must be at least 18 years old when applying. If you’re younger, your parent or guardian can use it on your behalf as the primary borrower.
2. Academic Record
Avanse looks for a strong academic background. Good grades and test scores, such as those on the GRE, GMAT, IELTS, or TOEFL, are essential, especially for countries like the US, UK, and Canada. Higher scores can strengthen your application and improve your Avanse study abroad loan offer.
3. Admission Confirmation
You must have secured admission to a recognised university or institution abroad. Eligible courses include undergraduate, postgraduate, diploma, and professional programmes offered by approved global universities.
4. Co-applicant Requirement
A co-applicant (usually a parent, guardian, or spouse) is mandatory. They should have a steady income and a good credit score, as this directly impacts their approval chances and the applicable Avanse education loan interest rate.
5. Collateral (Optional)
Avanse offers both secured and unsecured loans. Collateral may be required for higher loan amounts, but students with firm profiles and financially stable co-applicants can qualify without it.
6. Eligible Countries
The Avanse education loan covers all major international study destinations, including the USA, UK, Canada, Australia, Germany, France, Ireland, and several others.
Wondering whether you should choose a secured or an unsecured loan? Learn the key differences in our guide on secured vs unsecured education loans.
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Avanse Education Loan Interest Rate 2025
The Avanse Abroad Education Loan interest rate varies depending on several factors — such as the course, the borrower’s academic record, the co-applicant’s financial strength, and whether the loan is secured or unsecured. Understanding these variations helps students plan their finances more effectively.
1. General Interest Rate Range
Avanse currently offers education loan interest rates ranging from 10.25% to 14.5% per annum.
- Secured loans (with collateral) typically start at 10.25%–12.5% per annum.
- Unsecured loans (without collateral) typically range from 12.75% to 14.5% p.a.
The exact rate depends on your profile, including university ranking, course type, and the co-applicant’s credit history. Students from top-tier institutions or with excellent academic records often qualify for lower rates.
2. Country-Specific Interest Rates
For popular destinations, Avanse tailors its rates based on GRE scores and income profiles:
- USA: 12.25%–14% depending on GRE score and loan size
- UK and Canada: 12.5%–13.5%
- Germany, France, and Ireland: 12.5%–13.5%
- Australia and New Zealand: around 12.5%–12.75%
Example: For students with a GRE score above 310, Avanse offers interest rates as low as 12.25%, while applicants with scores below 300 might see rates closer to 13–14%.
3. Factors Affecting Interest Rates
Several aspects influence the final Avanse education loan interest rate you’re offered:
- Academic record and test scores (higher scores = lower rate)
- Course type and university ranking
- Co-applicant’s credit score and repayment capacity
- Collateral availability (secured loans get lower rates)
- Loan amount and tenure
4. Avanse Base Rate Policy
Avanse follows a floating rate structure linked to the Avanse Base Rate, currently around 14.55%. This means your interest rate may fluctuate slightly depending on market conditions during the repayment period, depending on market conditions.
Looking for financing without pledging assets? Explore how you can get an education loan without collateral.
Avanse Education Loan Repayment Terms 2025
Repaying your Avanse Abroad Education Loan is designed to be as flexible and stress-free as possible. This is their repayment structure, which offers both convenience and customisation.
1. Moratorium Period (Payment Holiday)
Avanse provides a moratorium covering your entire study period plus 12 months after course completion.
This means you’re not required to start repaying the principal immediately, giving you time to complete your studies and secure employment.
During this time, you can choose from three repayment options:
- Full deferment: No payments until after the moratorium ends.
- Interest-only payment: Pay just the simple interest during your study period.
- Partial EMI: Pay a small portion of the interest or EMI to reduce the total payable amount later.
Paying even partial interest during your course helps reduce your total interest burden significantly.
2. Repayment Tenure
The repayment period extends up to 15 years, depending on the loan amount and the borrower’s income. This long tenure helps keep monthly EMIs affordable, especially for students starting fresh careers abroad.
3. EMI Start and Flexibility
Once your moratorium ends, EMIs begin automatically. You can opt for monthly auto-debit payments from your account. Avanse also allows flexible EMI structures — meaning you can choose to start with smaller EMIs and gradually increase them as your income grows.
4. Prepayment and Foreclosure
Avanse encourages early repayment. You can prepay or close your loan account anytime after the moratorium without any penalty charges. This flexibility allows you to save on total interest paid if you begin earning sooner than expected.
5. Grace Period and Restructuring
In case of delayed employment or unexpected circumstances, Avanse may offer a short grace period or repayment restructuring, subject to eligibility and approval.
Documents Required for Avanse Abroad Education Loan
When applying for an Avanse Abroad Education Loan, having your documents ready in advance helps speed up the approval process.
1. Student Documents
- Identity Proof: Any one of the following: PAN Card, Passport, Voter ID, or Aadhaar Card.
- Address Proof: Aadhaar Card, Passport, or recent utility bills such as electricity, water, or gas bills.
- Passport: Mandatory for all study abroad loan applications.
- Academic Records: Mark sheets and certificates for Classes 10 and 12, degree transcripts, and entrance exam results such as GRE, GMAT, IELTS, or TOEFL.
- Admission Proof: A confirmed admission or offer letter from a recognised foreign university. Conditional offers are also accepted.
- Fee Structure: The cost of study as provided by the university, including tuition, accommodation, and living expenses.
- Bank Statements: Last six months’ statements of the student’s active bank account.
- Photographs: Two recent passport-sized photographs.
Tip: Keep digital copies of all documents (PDF format preferred) as Avanse allows online submission.
2. Co-applicant Documents
Income Proof (Salaried Co-applicant)
- Salary slips for the last three months
- Form 16 or Income Tax Returns for the previous two years
- Bank statements for the last six months (salary account)
Income Proof (Self-employed Co-applicant)
- Income Tax Returns for the last two years
- Business address proof
- TDS certificate (Form 16A), if applicable
- Qualification certificate (for professionals such as doctors or CAs)
- Bank statements for the last six months (business account)
Relationship Proof: A document showing the relationship between the applicant and co-applicant (such as a birth certificate or passport).
Note: The co-applicant’s income and credit score are critical in deciding the loan amount and interest rate.
3. Collateral Documents (For Secured Loans)
If you’re opting for a secured loan, Avanse will require property-related documents such as:
- Title or Sale Deed (ownership proof)
- Recent property tax receipts
- Encumbrance Certificate confirming the property is free from legal dues
- Valuation Report from a certified property valuer
- No Objection Certificate (NOC) from the housing society or local authority
Collateral is not mandatory. Avanse also provides unsecured loans for eligible profiles with strong co-applicants.
Confused about the responsibilities of a co-signer? Read more about the role of a cosigner in education loans.
4. Additional Documents (If Applicable)
- Loan account statement, if you already have an existing education loan
- Visa copy or proof of visa application for pre-visa disbursal
- Credit life insurance documents, if required under the loan terms
How to Apply for an Avanse Abroad Education Loan (Step-by-Step)
Avanse’s online process makes applying for a study abroad loan quick and paper-free. Here’s how it works:
Step 1: Visit the Official Website
Go to www.avanse.com and click “Apply Now.” Fill in your details, including name, course, country, university, and loan amount.
Step 2: Upload Documents
Upload scanned copies of your ID, academic records, admission letter, fee structure, and your co-applicant’s income proof. Clear, complete documents ensure faster review.
Step 3: Eligibility and Credit Assessment
Avanse reviews your profile based on:
- Academic record and test scores
- Course and university ranking
- Co-applicant’s income and credit score
- Loan type (secured or unsecured)
This check usually takes 2–3 working days.
Step 4: Sanction Letter
If approved, you’ll receive a loan sanction letter detailing the sanctioned amount, interest rate, tenure, and repayment schedule. Review and sign it. This letter is valid for a visa and admission confirmation.
Step 5: Loan Disbursement
Funds are disbursed directly to your university’s account as per the fee schedule. Pre-visa and pre-admission disbursals are available. Processing to disbursal typically takes 7–10 working days.
Avanse Abroad Education Loan: Real Reddit Experience
When exploring funding for overseas education, many students turn to non-banking lenders like Avanse for quicker approvals and flexible terms. A Reddit user recently shared their experience while applying for a UK study loan through Avanse Financial Services, comparing it to traditional bank options.
Reddit User shared:
“I’m applying for my master’s in the UK and checked out Avanse loans. The process looks much smoother than public banks, with fewer documents and faster approvals. But how long does it actually take for disbursement, and does the interest rate stay fixed or vary?”
Insight:
This reflects a common question among students choosing between banks and NBFCs. While Avanse offers a fully digital process, minimal paperwork, and faster approvals (around 7–10 days), its interest rates are usually floating, linked to the Avanse base rate, meaning they can fluctuate slightly during repayment.
What do we infer from this case?
- Avanse is ideal for students who value speed, convenience, and flexibility.
- It’s particularly helpful for pre-visa disbursements and covering full education costs (tuition, living, travel).
- Students should confirm whether their loan has a fixed or floating rate before signing the sanction letter.
Tip:
Applicants with strong academics and a financially stable co-applicant can get faster approval and better rates with Avanse compared to public banks.
The Avanse Abroad Education Loan stands out as a practical solution for Indian students planning higher studies overseas. With its fast digital process, no margin money requirement, and flexible repayment terms, it removes the financial hurdles that often delay university admissions or visa approvals.
Ready to fund your study abroad dream? Check your education loan eligibility with Propelld today, get instant, collateral-free loan options with quick approvals and transparent terms. Apply with Propelld today and make your dream a reality!
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