A Complete Handbook to Student Loan Disbursement in India
Taking an Education loan means you need to be well acquainted with the terms and process of disbursement of loans in India.
So, What does Student loan disbursement mean?
After the loan has been granted to the borrower, paying out of the loan by the bank is Loan disbursement. Generally, banks disburse loans directly to the college funds. Your college fund will receive the payment of fees by the bank as soon as the semester of the college starts.
How does student loan disbursement work?
After the right to cancel period has expired, a student loan is being disbursed the bank. Loan funds may be divided into multiple disbursements with usually one per semester. As per the repayment schemes that you choose, your monthly repayment will begin as soon as your funds are disbursed.
How long does student loan disbursement take?
As soon as the loan is granted by the bank, they start to disburse the loan within the due date set by your college. The loan is generally disbursed within 120 days of sanction of the loan depending on the cancellation period set by the bank.
Documents required for Education Loan disbursement in India:
Payments slip of the semester fees to be submitted to the bank for disbursal.
Other documents are already required to be submitted during applying for the loan.
Other important points to keep in mind:
The disbursal date is to be set by the borrower.
Decide the disbursal amount breakup, i.e. the amount required for personal expenses and the amount for university fees.
Also, provide the disbursal account details to the bank.
The loan can be cancelled if required within the cancellation period set by the bank.
Look out for the repayment methods with the bank while applying for the loan. Paying back the loan on time helps build a good credit score of the borrower. This helps the borrower to get other loans easily in the future.
