Interest on a USD education loan is calculated based on the loan amount, interest rate, and repayment structure. During the study and moratorium period, interest may accrue, with options to pay interest-only EMIs or begin full repayment after graduation.
Yes, eligible students can apply for collateral-free USD education loans. Approval depends on factors such as academic performance, university ranking, course potential, and the financial profile of the co-borrower.
A USD education loan typically covers tuition fees, accommodation, living expenses, travel costs, health insurance, and study-related expenses. It ensures students have financial support for most major costs associated with studying abroad.
Avanse Global offers repayment tenures of up to 15 years. Students usually receive a moratorium during the course period, after which repayment begins through manageable monthly instalments.
Yes, the approved loan amount is typically disbursed directly to the international university in USD. In some cases, a portion may also be provided for approved expenses such as living costs or travel. This is sent to the registered bank account details provided.
The date when Avanse Global releases the Loan Amount from Avanse Global’s bank account, hands over the instrument comprising the Loan Amount, or transfers the money to the customer’s account (including bank account with Avanse Global’s lien, if applicable).
The education loan amount usually includes the following:
Avanse Global offers you the flexibility to avail of the disbursement of the loan depending on your requirement.
Interest on the loan is calculated from the date of disbursement on the amount disbursed as stated above (Refer to Question - What is considered as the Disbursement Date?).
No problem. We understand that choosing the appropriate disbursement type may require a detailed understanding of your loan, existing financials, impact of interest applicability, etc. Hence, we recommend that you discuss your loan requirement and expectations in-depth with your sales manager and co-borrowers to finalise the appropriate form of disbursement type. Our sales staff is here in case any guidance or additional information is required.
There may be a difference between the disbursed loan amount and the amount credited to your designated bank account. This would be on account of fees, charges for value-added services that you may choose to be deducted from your disbursement for onward payment to the service provider.
For instance, insurance premiums, value-added service (VAS) charges, or legal charges (if applicable) are included in the total disbursed amount but are deducted for payment to your third-party service provider before crediting the funds to your bank account for other education costs. Prior to disbursement, we shall provide you with clear visibility on the disbursement amount and deductions, if any.
In case you are required to evidence the availability of sufficient funds for visa, admission requirements, travel formalities, etc., you can choose to avail the disbursement of the full sanction amount. The disbursement amount shall be credited to your bank account, subject to a lien to Avanse Global. A lien is a temporary hold on your loan funds in your designated bank account, ensuring proper use for academic expenses. Interest shall accrue on the disbursed amount under lien as well from the date of disbursement. Avanse Global shall release funds from the lien, basis your requirement on submission of relevant documentary evidences.
You may choose to avail full disbursement to evidence the availability of sufficient funds for visa, admission requirements, travel formalities, etc. Avanse Global facilitates this requirement by disbursing the sanction amount under a lien. Avanse Global shall release lien-marked funds, based on your requirement on submission of relevant documentary evidences. This is required as per Avanse Global’s internal and regulatory guidelines on End Use Monitoring of loan proceeds.
You can request the removal of the lien and release of funds as required for your tuition fees, living expenses, etc., by providing the relevant documentary evidence. Avanse Global shall remove the lien for the required amount and arrange for the release of funds within 7 working days of receiving your request, subject to receiving the supporting documents from your end. The lien on the remaining amount shall continue till your next request. Interest shall accrue on the disbursed amount under lien.
For remittance of tuition fees and living expenses, the above-mentioned lien needs to be removed. You need to provide specific documents depending on your academic progress. Please provide a complete set of documents at least 7 working days prior to your scheduled remittance. The requirements are as follows:
Yes. Remittance charges are levied per transaction as per the Schedule of Charges (Refer to Question - Where can I access the Schedule of Charges and the Interest Rate policy of Avanse Global?). For your convenience, such charges would be deducted from the disbursement amount.
Interest on the loan is calculated from the date of disbursement. (Refer to Question - What is considered as the Disbursement Date?).
Interest accrues on the funds disbursed to your bank account from the date of disbursement, regardless of their utilisation.
Yes. If you have availed full disbursement to evidence availability of funds for visa/admission, etc., such funds would be credited to your designated bank under lien to Avanse Global. Interest shall accrue on the disbursed amount under lien as well from the date of disbursement. In such instances, interest is payable even if your visa application is still in process.
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 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.
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 the case of PSI, the monthly instalment is calculated on the outstanding loan amount upon adding the balance portion of the unpaid interest, i.e., compounding effect/interest capitalisation.
Broken period interest (BPI) is the interest charged on your loan from the disbursement date to the first regular EMI due date (post moratorium/grace period).
Your first loan instalment will include – Scheduled Broken Period Interest + Partial Simple Interest.
(Broken Period Interest = First month’s remaining days’ interest).
Your first loan instalment will be collected from your designated bank account. Hence, sufficient funds need to be maintained in the account on which the repayment mandate is provided.
You can access both documents by visiting our website. Here are the links for your reference:
Opening of a foreign currency bank account and operationalising repayment mandate for repayment of instalments and other charges have to be completed prior to loan disbursement.
A repayment/auto-debit mandate is a simple and secure authorisation you give to your overseas bank. It allows Avanse Global to automatically collect your monthly EMIs directly from your overseas bank account on the due date. Think of it as setting up an automatic, recurring payment for your loan. It is 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 setting up a repayment/auto-debit mandate. This enables automatic deduction of your monthly instalments from your overseas bank account on the due date.
Yes, you may raise a request through your sales manager or by writing to us at wecare.global@avanse.com. However, approval of a course or university/college change will be based on the credit underwriting norms and internal policies at Avanse Global.
The processing of such a change request will be at the sole discretion of Avanse Global, as the same is similar to a fresh loan application. The processing of such a request could take 15 working days from the date of receipt of all requisite documents. In case the disbursement has been credited to the previous university/institution, then you shall ensure reimbursement/repayment into your loan account prior to making such change request.
You can access your Statement of Account through the following channels:
Yes. You have to inform us as soon as you know (within 3 working days) 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 Global, you can:
Think of VAS as 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 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, student discount cards, and more.
All 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 are interested, please speak with your Avanse Global representative for more details.
We understand that you may have availed full disbursement 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:
Yes. You can return the funds from the disbursed loan amount. To proceed, please write to us at wecare.global@avanse.com for assistance. This will be treated as part payment against your outstanding loan balance.
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. 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 (Refer to Question - Where can I access the Schedule of Charges and the Interest Rate policy of Avanse Global?).
As a regulated entity, Avanse Global is required to report the performance of loans to credit bureaus. Credit bureaus utilise such reporting to arrive at your credit behaviour and assign a credit score. 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.
