Avanse Education Loans in India: Full Guide for Students (2025)
🎓 Why Avanse?
Studying in India or abroad has become more expensive than ever. From tuition fees to accommodation and travel, students and families are looking for ways to fund quality education without draining their savings. This is where Avanse Education Loan comes in.
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Avanse is a dedicated Non-Banking Financial Company (NBFC) that focuses only on education financing. With flexible loan amounts, quick disbursements, and collateral-free options, it has become a popular choice for Indian students—especially those planning to study abroad.
In this blog, we’ll walk you through
- What makes Avanse different
- Its key features
- Pros and cons
- Who it’s best for
- And whether you should choose Avanse or not
Top 20 Budget Colleges in India
Let’s dive in 👇
🔑 Key Features of Avanse Education Loans
Avanse offers customized loans for a wide range of courses and destinations. Whether you’re pursuing an MBA in the US or a medical degree in India, they likely have a plan for you.
✅ 1. Loan Amount
- You can get from ₹1 lakh to ₹75 lakhs, and in some cases even ₹1.25 crore
- Based on your course, university, and repayment capacity
- Full 100% coverage of tuition, living expenses, travel, books, laptop, etc.
✅ 2. Collateral-Free Loans
- You can get loans without collateral if your academic profile is strong
- No need to pledge property or assets
- Depends on your university, course type, and co-applicant income
✅ 3. Quick Processing
- Fast online application and approval process
- Loan can be sanctioned within 3–6 working days
- Pre-visa disbursal letters available for students going abroad
✅ 4. Repayment Flexibility
- Tenure up to 15 years
- You can choose from:
- Interest-only during course
- Partial EMI
- Full EMI after study
- Moratorium period = Course duration + 6 to 12 months
✅ 5. Wide Course & Country Coverage
- Supports 2000+ courses across 45+ countries
- Loans available for engineering, management, science, aviation, and even short-term or executive programs
👍 Pros of Avanse Education Loans
✅ High Loan Amounts Without Collateral
You can get up to ₹40–₹75 lakhs without security for top institutions—perfect for students going abroad.
✅ 100% Financing
No need to arrange for margin money. Covers tuition, hostel, living, laptop, travel, and even exam fees.
✅ Customizable EMI Options
Choose what suits you: pay only interest while studying, or opt for EMIs that increase later.
✅ Fast Processing
Unlike public banks that can take weeks, Avanse processes your application quickly—great if you have deadlines for visa or admission.
✅ No Age Limit or Course Restriction
Open to all—whether you’re 18 or 38, and whether it’s a diploma, full-time degree, or certification.
✅ Digital & Doorstep Support
Apply online, upload documents, and get assistance at home if needed.
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👎 Cons of Avanse Education Loans
⚠️ Higher Interest Rates
Avanse loans come with floating interest rates—usually around 11% to 16%, which is higher than SBI or government banks.
⚠️ Floating Interest Can Increase
Rates can change based on market conditions, so your EMI may go up after a few years.
⚠️ Limited Government Subsidies
Being an NBFC, Avanse does not always offer the interest subsidy schemes available with public banks.
⚠️ Customer Service Complaints
Some students have reported issues with support, especially during pre-closure or loan transfer.
⚠️ Processing Fees & Charges
Charges range from 0.5% to 1% of the loan amount, and additional fees may apply for insurance or services.
🎯 Should You Choose Avanse?
If you’re looking for:
- Fast approval
- No-collateral education loan
- 100% funding for studying abroad
- And custom repayment plans
Then Avanse could be a great fit for you.
It’s especially helpful for students:
- Going to the USA, UK, Canada, Australia, or Europe
- Who need a large loan but don’t have collateral
- Who need a quick sanction before visa interviews
However, if you’re eligible for the SBI Scholar Loan or want the lowest interest rate and access to government subsidies, you may want to compare it with public sector banks.
📌 Bottom Line
Avanse is a strong and flexible option for Indian students, especially those studying abroad and in need of quick, collateral-free loans. With high loan amounts, full coverage, and fast disbursal, it simplifies the complex financing journey.
However, it’s important to read the terms carefully, ask about interest rate fluctuations, and be prepared for slightly higher costs compared to government banks.
If you want speed, flexibility, and full support—Avanse is worth considering.
🏦 Education Loan Comparison: Avanse vs SBI vs HDFC Credila (2025)
| Feature | Avanse | SBI (Scholar Loan) | HDFC Credila |
|---|---|---|---|
| Loan Amount | ₹1 lakh – ₹75+ lakh (up to ₹1.25 Cr) | Up to ₹1.5 crore | ₹1 lakh – ₹75+ lakh |
| Collateral-Free Limit | Up to ₹40–75 lakh (profile-based) | Up to ₹7.5 lakh for select institutes | Up to ₹75 lakh for top institutes |
| Interest Rate | 11% – 16% (floating) | 8.5% – 10.5% | 10.5% – 13.5% |
| Moratorium Period | Course + 6 to 12 months | Course + 12 months | Course + 6 months |
| Repayment Tenure | Up to 15 years | Up to 15 years | Up to 15 years |
| Pre-Visa Disbursal | ✅ Yes | ❌ No | ✅ Yes |
| Application Process | 100% online or doorstep service | Offline/in-branch | 100% online or assisted |
| Courses Covered | Wide (India & Abroad) | India (Premier Institutes) | India & Abroad |
| Processing Time | 3 – 6 working days | 7 – 20 working days | 4 – 7 working days |
| Processing Fees | 0.5% – 1% of loan amount | ₹10,000 (approx) | 1% of loan amount |
| Tax Benefit (Sec 80E) | ✅ Yes | ✅ Yes | ✅ Yes |
| Govt Subsidy Eligible | ❌ No | ✅ Yes | ❌ No |
| Best For | High-value, quick, no-collateral loans | Low interest, govt subsidy, top institutes | Study abroad with pre-visa disbursal |
💡 Quick Verdict
- Avanse: Best for students going abroad needing quick & large loans without collateral.
- SBI: Best for students in IITs/IIMs/NITs seeking low interest and subsidy benefits.
- HDFC Credila: Best for study abroad applicants needing customized plans and pre-visa funding.
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Is Avanse approved by RBI?
Yes—Avanse Financial Services Ltd. is officially registered with and regulated by the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC), meaning it fully complies with RBI’s rules and regulations for lending.
Is Avanse good for education loans?
Yes—Avanse is well-regulated and a solid choice for education loans. It offers high-value, collateral-free financing, flexible repayment options, and fast disbursal for both domestic and international studies. However, be mindful that their floating interest rates can rise. And some borrowers report less-than-ideal customer service, especially around prepayment or foreclosure.
What is the interest rate for the Avanse loan?
Avanse Education Loans carry a floating interest rate, calculated as the Avanse Base Rate (14.55% as of 1 Dec 2024) + a spread. With typical overall rates ranging from 10% to 16.5% depending on your profile, course, and collateral status.
Which is better, Credila or Avanse?
When comparing HDFC Credila and Avanse, Credila generally offers lower interest rates (around 10.5%–12.25%). And wider coverage—with the added benefit of government tax deductions under Section 80E. While Avanse provides more flexibility for collateral-free loans, faster approval, and higher loan amounts, though typically at slightly higher rates (~11%–13%).
Data taken from Avanse.com & fly.finance