- Mr.

Neera[ Saxena, CLC - Avanse Lducanon Loans

1. What |s the |oan structure for educanon |oan to study abroad? (A Matr|x w||| be usefu|)

1erms Deta||s
urpose Lducauon Loan for hlgher educauon abroad.
Lllglble CounLrles All CounLrles are Lllglble
Lllglble lnsuLuLes and Courses All accredlLed, recognlzed, approved full-ume or parL-ume courses
aL undergraduaLe, CraduaLe and uocLoral levels
Lllglble SLreams All sLreams lncludlng, buL noL llmlLed Lo, englneerlng, buslness/
commerce, medlcal, humanues, soclal sclences, ne arLs, deslgn,
excecuuve educauon, eLc
Max Loan AmounL Allowed up Lo Lhe full cosL of compleung Lhe degree (max 1 crore lndlan
8upees or more, lf requlred)
Lxpenses Covered All expenses lncludlng Luluon & fees, llvlng expenses, books &
sLudy maLerlals, lnsurance, Lravel expenses, eLc
Margln Money 8equlred (?es/no) no. Margln ls noL requlred
roducL 1enure A max of 144 monLhs (12 years)
8epaymenL 1ype Allowed l. rlnclpal moraLorlum durlng course + grace perlod and Lhen LMl
repaymenLs
ll. arual lnLeresL repaymenL durlng course + grace perlod and
Lhen ad[usLed LMl repaymenLs
lll. lmmedlaLe and dlrecL LMl repaymenLs
lv. 8alloonlng or SLep-up 8epaymenL sLrucLure
lloaung 8aLe Cf lnLeresL 1led Lo Avanse base raLe. 1yplcally beLween 12-14
rocesslng lee AmounL Cne-ume processlng fee of 1 (Lyplcal)
lnsurance Cover Avanse roLecL Llfe lnsurance coverage ls requlred


2. 1e|| us about your educanon |oan campa|gns. now have the students responded to such
campa|gns?

Avanse '3 8eneL ack' campalgn was a 360 degree campalgn Lo communlcaLe Lhe beneLs Lo Lhe
prospecLs. 1he '3 8eneL ack' conslsLs of unlque and excluslve beneLs oered by Avanse for a
sLudenL Lravellng abroad. 1he beneLs lnclude - 1elecom servlces, 1ravel AsslsLance & lnsurance,
ersonallLy and Luqueue Lralnlng, lSlC SLudenL Card, Luggage Shopper ulscounLs, and lllghL/
CollaLeral SecurlLy 8equlremenL CollaLeral securlLy ls requlred for cerLaln loan Lypes. AccepLable
collaLeral lncludes roperues, llxed ueposlLs and 2nd charge on
properues morLgaged wlLh uPlL or lLs group companles.
AvallablllLy of collaLeral can greaLly lncrease Lhe posslblllLy of loan
approval.
A loan backed by collaLeral securlLy generally has a lower lnLeresL
raLe
1he value of Lhe collaLeral has Lo be aL leasL 30 of requesLed loan
amounL
1hlrd parLy collaLerals & muluple collaLerals are accepLable
Co-borrower An lncome earnlng co-borrower ls requlred
AccepLed co-borrower relauonshlps are laLher/MoLher/8roLher/
SlsLer/Spouse/8elauves
AccepLable Co-8orrower Cccupauons Salarled, rofesslonals, Self-Lmployed, eLc
AccepLed Locauons for Loan All uPlL Locauons (over 200 across lndla)
uocumenLauon CompleLed Avanse Loan Appllcauon lorm along wlLh k?C,
llnanclal and CollaLeral documenLs
ulsbursemenL Loan ls dlsbursed ln lndlan 8upees
1uluon fee ls converLed lnLo forelgn currency and senL Lo
unlverslLy/lnsuLuLe's accounL (alLernauvely, a forelgn currency
denomlnaLed uu can be lssued)
Llvlng expenses, Lravel expenses, eLc ls glven Lo Lhe sLudenL
(borrower)
Loan ls dlsbursed as per fee paymenL schedule of Lhe lnsuLuLe
Addluonal laclllues ulsbursemenL of loan before sLudenL vlsa clearance
Approval (sancuon) of loan before admlsslon conrmauon
8alance 1ransfer of exlsung educauon loan Lo Avanse
uoor-sLep documenLauon servlce
8aggage ulscounLs. 1he package alms aL provldlng convenlence Lo sLudenLs wlLh loglsucal supporL so
as Lhey can focus on sLudles.

Avanse has parLnered wlLh varlous leadlng global servlce provlders Lo oer Lhese beneLs. Avanse
has parLenered wlLh Clay 1elecom for uSA & uk CounLry Speclc repald SlM card. Along wlLh LhaL,
Avanse has also parLnered wlLh lmage Consulung 8uslness lnsuLuLe (lC8l) where ln Avanse sLudenLs
wlll geL an Lxcluslve lmage and So Sklll rogram worLh 8s.4000/- oered by lC8l for a 8eglsLrauon
lee of [usL 8s. 300/-. 1oplcs covered lnclude lnLernauonal culLure uos and uon'Ls, body language,
corporaLe groomlng and euqueue, ne dlnlng euqueue, eLc.

Avanse cusLomers also geL an excluslve dlscounL of 10 on 1ravel Luggage purchases aL all
8lg 8azaar CenLers. ulscounLed Lravel and medlcal lnsurance ls also made avallable under
Lhls 3-ack oer. LasLly, sLudenLs geL a free lnLernauonal SLudenLs lu card whlch enuLles
Lhem Lo varlous dlscounLs and oers aL buslness esLabllshmenLs across Lhe glove.

Avanse runs varlous onllne and oMlne campalgns Lo enllghLen Lhe lndlan sLudenL
communlLy abouL lLs producLs and servlces and educauon loans ln general. Semlnars,
SummlLs and Weblnars held regularly cover varlous academlc and educauon-nance and
borrowlng relaLed Loplcs.
1he response Lo such campalgns ls very hearLenlng, polnung Lo Lhe facL LhaL numerous
lndlan sLudenLs are keen Lo geL access Lo hlgher educauon and educauon nance.

3. nas fore|gn educanon |oan area expanded |n the |ast few years? If so, the reasons thereof.
Lducauon loan ls sull aL Lhe nascenL sLage ln Lhe counLry buL lL has greaL scope Lo grow. Cverall
educauon markeL ls abouL 8s 80000 cr ouL of whlch only 16 ls servlced by educauon loans. 1he
educauon nance buslness ln lndla has grown aL Lhe raLe of 30 per cenL CAC8 over Lhe pasL ve years
from 8s 13,200 crore ln 2006-07 Lo 8s 30,300 crore ln 2011-12.
lndla's sLrong youLh populauon has fueled a growlng demand for hlgher educauon and Lhe lack of quallLy
lnsuLuLes ln lndla LhaL can caLer Lo Lhls demand has meanL LhaL Lhe number of sLudenLs auempung Lo go
Lo forelgn desunauons Lo pursue Lhelr hlgher educauon ls consLanLly lncreaslng. ln facL, lndlan sLudenLs
are Lhe second largesL group of lnLernauonal sLudenLs ln Lhe worldwlde hlgher educauon markeL Loday.
Comblned wlLh Lhls, Lhe sky rockeung cosLs of hlgher educauon and Lhe lndlan rupees' slump ln global
markeLs have only resulLed ln expandlng Lhe demand for educauon loans for forelgn sLudles.

4. W|th h|gh |nterest rates, how feas|b|e |s |t for students to opt for educanon |oan?
Asplrauons for a greaL career and llfe conunue Lo remaln Lhe cornersLone LhaL drlves Lhe lncreaslng
demand for educauon loans ln lndla. SLudenLs now have Lhe opporLunlLy Lo pursue varlous oMeaL
courses whlch provlde Lhem a vasL array of career opporLunlues. SLudenL lnLeresL ln non-convenuonal
programs such as muslc, phoLography, lmage consulung eLc. ls seen Lo be on Lhe rlse. More oen Lhan
noL, Lhey wlsh Lo pursue Lhese programs ln speclallzed lnsuLuuons overseas. Powever, lL ls noLeworLhy
LhaL some of Lhese courses are qulLe expenslve. Lducauon loans Lhus help Lhese sLudenLs pursue Lhelr
asplrauons. Lven ln Lhe case of convenuonal courses such as M8A, MS eLc. wlLh lncreaslng awareness of
educauon loans, parenLs and sLudenLs are showlng eager lnLeresL Lo Lransfer responslblllLy - even lf lL ls
parually - Lo sLudenLs. WlLh exlble loan processes and servlce orlenLauon from prlvaLe players llke
Avanse, parenLs nd lL auracuve Lo Lake Lo educauon loans for Lhelr chlldren lnsLead of havlng Lo break a
long-Lerm savlng lnsLrumenL llke xed deposlLs.

S. What sops do you prov|de to auract students to educanon |oan schemes?

Avanse has lnLroduced a hosL of rsL-of-lLs klnd servlces ln educauon loans. ln order Lo add value and
provlde convenlence Lo Lhe sLudenLs golng abroad for hlgher educauon, Avanse has lnLroduced Lhe
lndusLry's rsL 3 8eneL ack LhaL enables Lhe overall wellness of Lhe sLudenL, golng beyond [usL
educauon loan.

Avanse also oers re Approved Loan (AL), deslgned Lo help sLudenLs who are plannlng Lo pursue
Lhelr hlgher educauon overseas especlally ln Lhe uSA, where admlsslon Lo Lhe lnsuLuuon may be
secured only lf Lhe sLudenL has demonsLraLed Assured lundlng Lo CompleLe Lhe Course". AL
provldes an ln-rlnclple Sancuon leuer of Lducauon loan Lhus lmprovlng Lhe prospecL of admlsslon
ln Lhe deslred unlverslLy for Lhe sLudenL.

Avanse also provldes exlsung educauon nance cusLomers from oLher lendlng lnsuLuuons Lhe
opporLunlLy Lo avall of Avanse's unlque proposluon Lhrough Avanse 8alance 1ransfer (81). lLs speclal
feaLures lnclude compeuuve lnLeresL raLes, along wlLh exLended repaymenL Lenure and exlblllLy.
Avanse provldes doorsLep servlces wlLh zero processlng charges and a hassle-free and LransparenL
process.

WlLh lLs modernlzed processlng, Avanse approves Lhe loan ln a maxlmum of 4 days and provldes
loans upLo 100 of Lhe appllcauon amounL, even as hlgh as 8s 1 crore or more. 1he Company
provldes sLudenLs Lhe opuon Lo repay Lhe loan Lhrough exlble repaymenL plans, wlLh repaymenL
Lenure up Lo 10 years (120 monLhs).

6. Can you g|ve an esnmate of the number of students approach|ng you for fore|gn educanon |oans
every year? now has the trend changed and what does |t reect?
We recelve close Lo 2000 serlous enqulrles for overseas educauon loans per monLh. SLudenLs are noL
only sucklng Lo convenuonal desunauons such as uS and uk. 1hey are Lravelllng Lo Cermany, Canada,
amongsL oLhers. Slmllarly Lhey are opung for varlous non convenuonal courses.
Slnce lLs lncepuon ln !an 2013, Avanse has recelved close Lo 4000 compleLed educauon loan appllcauons
LoLallng a whopplng 630 crores.
7. Students are |ncreas|ng|y trave|||ng abroad for stud|es? Cou|d you share some of the strateg|c
|n|nanves that the bank |s p|ann|ng to fac|||tate the|r hnanc|a| needs?
Company has lnLroduced varlous lnluauves such as 3 beneL pack, elaboraLed above, Lo beneL sLudenLs
Lravellng abroad. Slmllarly we have re approved loans as well as Lhe faclllLy Lo dlsburse Lhe loan before
recelvlng a sLudenL vlsa from Lhe hlgh commlsslon/lmmlgrauon deparLmenL of Lhe concerned counLry.
Avanse has also ued up wlLh key sLake holders lncludlng educauonal consulLancles, lnsuLuLes and has a
large 8esearch & uevelopmenL verucal Lo keep up Lo daLe wlLh changlng Lrends and dynamlcs of Lhe
hlgher educauon and educauon nance secLors.

8. Ior what k|nd of programs do you oer ass|stance?
8elng a new age educauon nance company, Avanse noL only funds regular , malnsLream courses LhaL
lndlan sLudenLs have Lradluonally pursued buL also exLends educauon nance Lo new and upcomlng
courses lncludlng ne arLs, muslc, sporLs managemenL, phoLography, lm maklng as well as cerucauon
courses and dlplomas.
Avanse has also launched nance programs for k-12 educauon and loan opuons Lo fund prep-courses for
enLrance exams, eLc.
1he Company funds sLudenLs Lravelllng Lo all key lnLernauonal advanced educauon desunauons lncludlng
uS, uk, AusLralla eLc.
We provlde asslsLance Lo Lxecuuve educauon. Avanse provldes nanclal supporL Lo worklng
professlonals who wanL Lo pursue a hlgher order educauon
Avanse funds graduauon/ osL-graduauon for [ob orlenLed professlonal/ Lechnlcal courses oered by
repuLed unlverslues ouLslde lndla as well as courses and unlverslues approved by Avanse for educauon
nanclng.
9. What are the e||g|b|||ty cr|ter|a to get an educanon |oan to study abroad?
AL Avanse, Lo be ellglble for a loan, Lhe followlng crlLerla musL be meL:
S1uuLn1S

1he sLudenL Laklng Lhe sLudy abroad loan should be an lndlan cluzen and 18 years old or above

1here musL be conrmed admlsslon ln Lhe lnsuLuLe before nal dlsbursemenL of Lhe educauon
loan

1he sLudy abroad loan musL be co-slgned by an earnlng co-borrower ln lndla.

CC-8C88CWL8S

1he co-borrower of abroad sLudles loan musL be an lndlan Cluzen and could be a arenL, Slbllng,
Legal Cuardlan, or any oLher 8elauve.

1hey musL have a bank accounL ln any bank ln lndla wlLh cheque wrlung faclllues

1he Co-borrower would necessarlly be a [olnL debLor.

10. Does the 8ank charge a marg|n? If so, how much?
Avnase does noL charge for any margln money conLrlbuuon from Lhe appllcanLs. Cur sLudy abroad loans
are deslgned Lo provlde 100 coverage of Lhe cosL of educauon, Lhus dolng away wlLh Lhls burden,
leavlng Lhe sLudenL Lo focus on hls/her sLudles.
11. Is trave| expense covered |n the |oan amount?
?es, we oer all lncluslve loans.
12. If I have some hnanc|a| a|d for the sa|d programme, does the 8ank cons|der |t wh||e ca|cu|anng my
|oan amount?
?es lL does beneL. lL adds Lo Lhe merlL of Lhe sLudenL.
Also, Lhe scholarshlp amounL ls deducLed from Lhe LoLal cosL Lo compleLe Lhe course, Lhereby resulung ln
a lower loan requlremenL.
13. now |s my |oan d|sbursed?
AL Avanse we have a compleLe process for dlsbursemenL of loan amounL. 1he sLeps are

1he Loan amounL ls dlsbursed ln lndlan 8upees.

1he Luluon and hosLel lee wlll be converLed Lo forelgn currency and dlrecLly dlsbursed Lo Lhe
educauonal lnsuLuLe ,ln lnsLallmenLs, as per Lhe requlremenL of Lhe speclc educauonal lnsuLuLe

1he loan amounL relaLed Lo oLher expenses wlll be dlsbursed ln lnsLallmenLs spread over Lhe
durauon of Lhe sLudy, and ldeally wlll be Lransferred Lo Lhe co-borrower's accounL

ln case Lhe sLudenL resldes ouLslde Lhe hosLel, Lhe relaLed expense wlll be Lransferred Lo Lhe co-
borrower's accounL.

ln case of abroad cases, money wlll be Lransferred as per agreemenL wlLh Lhlrd parLy lC8Lx
vendor.
14. Does the 8ank requ|re co||atera|s? If so, what |s the cr|ter|a and max|mum perm|ss|b|e amount?
Avanse has boLh secured and unsecured opuons avallable. A collaLeral securlLy ls generally requlred for
loan for abroad sLudles. AvallablllLy of a collaLeral securlLy can greaLly lncrease Lhe chance of loan
approval and also may quallfy Lhe cusLomer for a beuer lnLeresL raLe.
Avanse may walve o Lhe collaLeral for cerLaln courses and/or merlLorlous candldaLes.
1he value of Lhe collaLeral can be less Lhan Lhe loan amounL requesLed. normally, lenders requlre
collaLeral coverlng 100 or more of Lhe educauon loan amounL.
Also, Avanse can accepL llxed ueposlLs as collaLeral.
1S. What k|nd of documents does one need to subm|t?
A llsL of documenLs requlred Lo submlL for avalllng an educauon loan are:

SLudenL k?C & Lducauonal uocumenLs

Course & lee ueLalls

Co-8orrower k?C and lncome uocumenLs

CollaLeral uocumenLs