Process of Closing Avanse Education Loan – Complete Guide for 2025. Education loans are a crucial resource for students aspiring to pursue higher studies without financial hurdles. Among the prominent lenders in India, Avanse Financial Services Ltd. stands out for offering student-friendly education loans. However, once your repayment period ends, understanding the process of closing an Avanse education loan becomes essential to ensure smooth financial closure and a clean credit record. Process of Closing Avanse Education Loan – Complete Guide for 2025.

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Overview

Education loans are a crucial resource for students aspiring to pursue higher studies without financial hurdles. Among the prominent lenders in India, Avanse Financial Services Ltd. stands out for offering student-friendly education loans. However, once your repayment period ends, understanding the process of closing an Avanse education loan becomes essential to ensure smooth financial closure and a clean credit record. Process of Closing Avanse Education Loan – Complete Guide for 2025.

In this guide, we’ll provide a detailed explanation of the Avanse education loan closure process, including documentation, repayment methods, and important considerations. We’ll also highlight the importance of securing your health through insurance while managing financial responsibilities, linking to Healthcare.gov for trusted coverage options. Process of Closing Avanse Education Loan – Complete Guide for 2025.

What is an Avanse Education Loan?

The Avanse Education Loan is a financial product designed to help students pursue higher education in India and abroad. Key highlights include:

Loan Amount: Up to ₹1.5 crore depending on the course and institution.
Interest Rates: Competitive, ranging from 10% to 13% per annum.
Repayment Period: Usually 5–15 years post the moratorium period.
Flexibility: Supports domestic and international education, including tuition, living expenses, and exam fees.

Once the borrower completes repayments, the next step is to formally close the loan account.

Why Closing the Education Loan Properly Matters

Closing your Avanse education loan is more than just paying the last installment. Proper closure ensures:

Updated Credit Report – Confirms that your loan is fully repaid, enhancing your credit score.
No Hidden Liabilities – Avoids future disputes regarding outstanding amounts.
Release of Security Documents – Any collateral or lien held by the bank can be returned.
Financial Peace of Mind – Confirms that your obligations are fully settled.

Step-by-Step Process of Closing Avanse Education Loan

Step 1: Confirm Outstanding Balance

Contact your relationship manager or use the Avanse online portal to check the exact loan balance.
Include accrued interest and any applicable charges for early repayment.

Step 2: Submit a Loan Closure Request

Write a formal request or submit through the Avanse portal stating your intent to close the loan.
Provide details such as loan account number, borrower’s name, and contact information.

Step 3: Make Full Payment

Pay the outstanding principal, interest, and any applicable prepayment charges.
Payment can usually be made through NEFT, RTGS, online banking, or cheque.

Step 4: Obtain No Objection Certificate (NOC)

After full repayment, request a No Objection Certificate (NOC) from Avanse.
The NOC confirms that the borrower has no remaining liabilities and is crucial for your credit history.

Step 5: Return Security Documents

If your education loan was secured with collateral (like fixed deposits or property), submit these for return.
The bank will release any lien or hypothecation once the loan closure is verified.

Step 6: Update Credit Report

Avanse will report the loan closure to CIBIL, Experian, Equifax, and CRIF High Mark.
Check your credit report after 30–60 days to ensure accurate reflection.

Tips for Smooth Loan Closure

Early Planning: Start closure process a few weeks before the final installment to avoid delays.
Keep Receipts: Maintain payment proof for future reference.
Check for Prepayment Penalties: Some loans have charges for early closure—factor these in.
Contact Customer Care: Avanse offers dedicated support to guide you through the closure process.
Monitor Credit Score: Verify closure reflected in your credit report to prevent errors.

Importance of Health Insurance During Loan Repayment

While repaying your education loan, unexpected medical expenses can impact your finances. Health insurance acts as a safety net, protecting you from large out-of-pocket costs.

By combining responsible loan management with adequate health coverage, you safeguard both your financial and physical well-being. Explore reliable plans at Healthcare.gov.

Common Challenges in Loan Closure

Pending Dues – Sometimes, interest or service charges may remain unaccounted for.
Document Delays – Return of collateral may take time due to administrative procedures.
Credit Report Discrepancies – Ensure your credit report reflects zero outstanding balance after closure.
Prepayment Confusion – Verify whether prepayment penalties apply for partial or full early repayment.
Communication Gaps – Maintain regular contact with Avanse customer support to avoid delays.

Advantages of Proper Loan Closure

Enhances creditworthiness for future loans.
Avoids legal complications with lenders.
Frees up security deposits or collateral.
Provides peace of mind for financial planning and investments.

FAQs – Process of Closing Avanse Education Loan

Q1. Can I close my Avanse education loan before the tenure ends?
Yes, Avanse allows early closure, though prepayment charges may apply.

Q2. How do I request the No Objection Certificate (NOC)?
Submit a formal request to your relationship manager or through the Avanse online portal.

Q3. What documents do I need to return after loan closure?
Any collateral documents like fixed deposits, property hypothecation papers, or post-dated cheques must be returned.

Q4. How long does it take for loan closure to reflect in my credit report?
Typically 30–60 days after loan closure and submission of NOC.

Q5. Is health insurance necessary while repaying an education loan?
While not mandatory, it is highly recommended to protect against unforeseen medical expenses that can impact repayment.

Conclusion

Closing an Avanse education loan is a critical step that ensures financial completion and strengthens your credit history. By following the proper process—verifying outstanding balance, making full payment, obtaining NOC, and returning collateral—you can secure your financial future.

Remember, combining financial prudence with health insurance coverage ensures holistic security for both your finances and well-being. Check reliable health insurance plans at Healthcare.gov for optimal protection.