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FundMyCampus: Education Loan Platform
Avanse Financial Services logo
Non-Banking Financial Company

Flexible terms · Quick approval

Avanse Education Loan

India's fastest-growing education finance NBFC, backed by Warburg Pincus and Kedaara Capital. Avanse specialises in education loans for non-conventional courses, Tier-2 universities, and students whose profiles don't fit traditional bank templates, with approval in 5–7 days.

11.00% to 14.00%

Interest Rate

₹1.25 Crore

Max Loan

5–7

Approval

12 years post-moratorium

Tenure

At a Glance

Avanse Financial Services logo
Lender Type
NBFC
Max Unsecured
₹75 Lakhs (extends to ₹1.25 Cr with collateral)
Max for India
₹75 Lakhs
Max for Abroad
₹1.25 Crore
Processing Time
5–7 working days
Processing Fee
1% to 2% of loan amount + GST
Moratorium
Course duration + 6–12 months (depending on program)
Est. 2013 · Mumbai

Why Avanse

Top reasons students choose Avanse

Most flexible on co-applicant profile: accepts informal income and CIBIL 650

Funds non-conventional courses banks decline (design, culinary, film, music)

'Career Linked' loan based on your projected post-graduation salary

Up to ₹75 Lakhs unsecured at top global universities

About Avanse

The complete Avanse loan guide

Avanse Financial Services is one of India's largest dedicated education finance NBFCs, with strong backing from global investors like Warburg Pincus and Kedaara Capital.

RBI-regulated lender
Section 80E tax benefit
FundMyCampus partner

Quick Facts

Avanse at a glance

Avanse Financial Services logo

Interest Rate

11.00% to 14.00%

Maximum Loan

₹1.25 Crore

Repayment Tenure

Up to 12 years post-moratorium

Lender Type

Non-Banking Financial Company

Check Eligibility: Free
Established 2013 · Mumbai

Loan Amounts

How much Avanse lends

₹75 Lakhs

For India studies

₹1.25 Crore

For Abroad studies

₹75 Lakhs (extends to ₹1.25 Cr with collateral)

Without Collateral

Free in 2 minutes

See your Avanse eligibility instantly

Get bank-wise approval predictions and rate estimates for your profile.

Step 1

Eligibility Criteria

Quick 2-min check
1
Indian citizen between 18–35 years
2
Confirmed admission to a recognised institution in India or abroad
3
Co-applicant: parent, guardian, spouse, or sibling
4
Minimum CIBIL 650 for co-applicant (most flexible threshold in the market)
5
Self-employed and informal-income co-applicants accepted with bank statements
6
No strict academic percentage minimum: Avanse considers overall profile
7
Avanse's 'Career Linked' loans approve based on expected post-graduation income
8
Wider acceptance for non-conventional programs: design, culinary, animation, film, music

Step 2

Documents Required

4 categories · Keep ready

Identity & KYC

5 items
  • PAN Card (applicant + co-applicant)
  • Aadhaar Card
  • Passport (for abroad studies)
  • Address proof (utility bill / registered rental)
  • 2 photographs each

Academic

6 items
  • Class 10 and 12 marksheets
  • Graduation transcripts and degree (PG applicants)
  • Entrance exam scores: GRE, GMAT, IELTS, TOEFL, NEET, JEE
  • Admission letter
  • Detailed fee structure
  • I-20 / CAS / COE (for visa-bound countries)

Co-applicant Financials

4 items
  • Last 2 years' ITR (Avanse is flexible here)
  • Last 3 months' salary slips OR 6 months' bank statements (for informal income)
  • Form 16 (last 2 years if salaried)
  • Audited financials for self-employed

Collateral (if applicable, only for very high amounts)

3 items
  • Property documents
  • Fixed Deposit certificates
  • Title verification (Avanse panel)

Honest Review

Avanse pros & cons

What works

Pros

  • Most flexible eligibility: accepts CIBIL 650 (vs 700+ at banks)
  • Lends for non-conventional courses: design, animation, culinary, film, music, art
  • Specialised loans for Tier-2/3 universities banks typically decline
  • Approval in 5–7 days: faster than most NBFCs
  • Up to ₹75 Lakhs unsecured for top international and Indian universities
  • 'Career Linked' loan considers your future salary, not just current family income
  • Direct partnerships with 1,000+ universities globally for seamless disbursement
  • Online application + Aadhaar e-KYC + e-signing: no physical paperwork
  • Specific products for abroad MBBS at NMC-recognised foreign medical colleges

Watch out

Cons

  • Highest interest rates in the market: 11%–14%
  • High processing fee (1%–2%) + 18% GST
  • Foreclosure penalty of up to 4% within first 2 years of repayment
  • No government subsidy schemes (CSIS, PM Vidyalakshmi): only banks qualify
  • EMI may start during moratorium for some product variants
  • Smaller branch presence: most processing is digital, fewer in-person touchpoints

Security

Collateral Requirements

Avanse Financial Services offers fully collateral-free education loans up to ₹75 Lakhs for top universities (both Indian and international) and up to ₹1.25 Crore with collateral. For amounts above ₹75 Lakhs, Avanse may request collateral depending on the university tier and applicant's profile. Accepted collateral types: residential property (LTV 65–75%, slightly more conservative than banks), fixed deposits (LTV 90%), LIC endowment policies, and government securities. Avanse does not accept agricultural land or properties under any kind of litigation. Their collateral valuation network operates pan-India and completes valuation in 5–8 working days. For higher loan amounts that may require collateral, Avanse often suggests a hybrid structure, partial unsecured loan up to ₹75 L + smaller secured loan for the rest, which speeds up the unsecured portion's disbursement.

Coverage

Approved Universities

Avanse has direct partnerships with over 1,000 universities globally, including most QS Top 500 institutions, AACSB-accredited business schools, NMC-approved medical colleges, and a notably wider list of design, culinary, animation, and music institutions than traditional banks. Their 'Premier Institute' tier covers top US universities (Ivy League, Stanford, MIT, top public R1 universities), top UK (Oxbridge, LSE, Imperial, UCL), top Australia (Group of Eight), top Singapore, Hong Kong, and select European universities. Their 'Approved' tier covers approximately 800 additional institutions globally. Avanse's unique strength is the 'Case-by-Case' tier for non-conventional programs. They fund students at Parsons (design), Le Cordon Bleu (culinary), CalArts (animation), Berklee (music), and similar institutions where banks decline. For Indian studies, Avanse funds all IITs, IIMs, AIIMS, NITs, BITS, ISB, XLRI, premier private medical colleges including DY Patil, Manipal, SRM, and most NIRF top 100 institutions. They also fund specialised institutes like NID (design), FTII (film), NIFT (fashion technology).

The Process

How Avanse loan works

From application to disbursement, what to expect.

1

Check eligibility

Use our 2-minute quiz to see if you qualify.

2

Submit application

Upload docs through our portal. We organise for Avanse.

3

Sanction

Avanse processes in 5–7 working days. We chase for you.

4

Disbursement

Bank wires fees directly to your institute.

Compare

Avanse vs Other Lenders

If Avanse doesn't suit your profile, here are the strongest alternatives.

Credila logo

Alternative

Credila

Direct NBFC competitor with slightly lower rates (10.50%–13%) and higher unsecured limit (₹1.5 Cr vs ₹75 L). Credila is better for premier global universities and very high loan amounts. Avanse wins for non-conventional courses, Tier-2 universities, and informal-income co-applicants.

Compare for my profile
ICICI Bank Education Loan logo

Alternative

ICICI Bank Education Loan

Bank alternative at 9.85%–12.50% rates, 1.5%–2% cheaper than Avanse. Choose ICICI if your university is in their Premier tier and you have a strong co-applicant (CIBIL 700+, formal income). Avanse is better if ICICI declines or your profile is non-standard.

Compare for my profile
SBI Global Ed-Vantage logo

Alternative

SBI Global Ed-Vantage

PSU alternative at 9.15%–10.15%, significantly cheaper. Choose SBI if you have time (15–25 days), strong profile, and your university is on SBI's approved list. Avanse wins on speed, flexibility, and university breadth.

Compare for my profile

Avanse Education Loan: FAQs

Common questions about taking an education loan from Avanse Financial Services

Avanse Financial Services interest rates range from 11.00% to 14.00% per annum. Rate depends on: (1) university tier. Premier Institute tier students get 11.00%–12.00%, Approved tier 12.50%–13.50%, Case-by-Case tier 13%–14%. (2) loan amount and tenure. (3) co-applicant CIBIL score. (4) collateral status. (5) program type. Top MBAs and engineering programs typically get better rates than non-conventional programs. Avanse rates are higher than banks (8%–12%) and Credila (10.5%–13%) because they accept more flexible profiles and riskier programs.
Up to ₹75 Lakhs fully unsecured for Premier Institute universities (both Indian and international top universities). Up to ₹1.25 Crore with collateral support. Avanse can structure hybrid loans (partial unsecured + partial secured) for very high amounts. For abroad MBBS at NMC-recognised foreign medical colleges, Avanse offers up to ₹50 Lakhs unsecured. The exact amount depends on your co-applicant's income capacity, your program's expected ROI, and the university tier. Avanse is willing to consider expected post-graduation salary under their 'Career Linked' loan product, which can increase your effective borrowing limit.
It depends on your profile. (1) For Premier Institute global universities (Ivy League, top US/UK/Singapore) with strong co-applicant profile: Credila is usually better, lower rates (10.50%–11.50% vs Avanse 11%–12%) and higher unsecured limits (₹1.5 Cr vs ₹75 L). (2) For Tier-2/3 universities, non-conventional courses (design, animation, culinary), or co-applicants with non-formal income: Avanse is better. They have specialised products and more flexible underwriting. (3) For abroad MBBS: both are competitive. Avanse is slightly more aggressive in Russia/Georgia/Philippines, Credila in Bangladesh/Kazakhstan. (4) Speed: Avanse 5–7 days vs Credila 5–8 days, roughly equivalent. The best approach: apply to both in parallel and compare offers.
Yes. And this is one of Avanse's unique strengths. Avanse funds students at Parsons School of Design, Rhode Island School of Design (RISD), Royal College of Art (London), CalArts, Le Cordon Bleu (Paris/London), Culinary Institute of America, Berklee College of Music, Sciences Po, IE School of Architecture, and similar specialised institutions where traditional banks decline. For Indian institutions, Avanse funds students at NID (Ahmedabad/Bangalore), NIFT, FTII (film), Indian Institute of Crafts and Design, and similar specialised colleges. Loan amounts and rates are typically the same as standard programs at equivalent-tier universities.
Yes, this is one of Avanse's significant advantages over banks. Avanse accepts self-employed co-applicants with informal income (small business owners, agricultural income, freelancers, artists, etc.). They evaluate based on: (1) 2 years of ITRs even if income is modest. (2) 12 months of bank statements showing consistent deposits. (3) GST returns for any registered business. (4) audited financials if available. Banks typically require 3 years of audited financials with formal income statements, which excludes most informal earners. Avanse has approved loans for students whose parents earn ₹40,000/month from agriculture or small retail, typically with somewhat reduced unsecured limits but still enabling the loan.
The Career Linked loan is Avanse's flagship product where loan eligibility is calculated based on the student's expected post-graduation salary, not just the current co-applicant income. For example: a student with admission to a top MBA program (expected ₹25–30 L starting package) can borrow up to ₹50 L even if family income is modest, because Avanse projects future repayment capacity. The product is particularly useful for: (1) MBA students at IIM, ISB, XLRI, top global B-schools. (2) MS/M.Tech students at top US universities with strong job prospects. (3) MBBS students whose post-MBBS career path is clear. Underwriting considers university placement reports, industry trends, and your program's median salary trajectory.
Avanse charges 1%–2% of loan amount as processing fee, plus 18% GST. For a ₹40 L loan, that's ₹40,000–₹80,000 + GST. The exact fee depends on the loan product (Standard, Premier, Career Linked) and your profile. Processing fee is typically partially negotiable for: (1) loans above ₹50 L. (2) Premier Institute students with very strong profiles. Note: Avanse's processing fee is paid in two parts, a smaller amount at sanction and the rest at disbursement, so you don't lose the full fee if you decide not to take the loan after sanction.
Yes, Section 80E of the Income Tax Act applies to all education loans from banks and NBFCs that are registered with the RBI. Avanse Financial Services is RBI-registered, so the interest you pay on your Avanse education loan qualifies for full Section 80E deduction. There's no upper limit on the deduction amount (unlike Section 80C). The benefit is available for up to 8 years from when you start repaying, and either the student or the co-applicant can claim it (only one per year). Avanse provides an annual Section 80E interest certificate within 45 days of financial year end. For a borrower in the 30% tax bracket, this effectively reduces your real interest cost by 25–30%. Note: the Section 80E deduction is available only under the old tax regime.
Avanse has a structured support program for borrowers facing repayment difficulty: (1) Contact Avanse customer care immediately. They offer EMI restructuring options including extended tenure (reducing monthly EMI) and temporary EMI holidays for up to 6 months in case of job loss. (2) Step-up to step-down EMI conversions are available. (3) Partial moratorium can be re-extended in genuine cases of further studies or unemployment after course completion. Avoid: missed EMIs damage your CIBIL (and your co-applicant's CIBIL), and prolonged default after 90 days triggers legal recovery. The earlier you reach out for restructuring, the more options Avanse provides.
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