How Long Does It Take To Sanction Education Loan?

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How Long Does It Take To Sanction Education Loan
Basic Criteria for Educational Loan One of the most vital questions that you may wonder about is the amount of the educational loan. In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.

  1. When you take education loan up to 4 lakhs, only the student and the parent have to sign the document and no collateral are necessary.
  2. However, if your loan amount is between 4 lakhs and 7.5 lakhs, you will have to provide third party guarantee to the bank.
  3. If the loan is above 7.5 lakhs, you will have to furnish the bank with collateral documents.

These are documents of any securities like NSC which the bank can sell to recover the amount if you fail to pay. How to apply for an educational loan for higher studies? In order to apply for an educational loan, you will have to prepare a number of documents beforehand.

  1. The process goes as follows: Once you have determined to study at an institution and completed the process of admission, then you will have to concentrate on taking out an educational loan.
  2. Here are the documents which you should keep ready: You will have to provide a proof of admission to the selected recognized institution.

Proof of your consistently high academic performance along with the last mark sheet will need to be produced. The cut-off marks generally differ from general students to reserved students. You need to produce a schedule of fees. Depending on the amount that you are applying for, you will need to produce income statement, statement of assets and liabilities etc.

  1. If you are going to study abroad, you need to produce your passport with a valid visa also.
  2. Your education loan will cover a number of things in addition to your tuition fees.
  3. These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects.
  4. After all the documents have been submitted and verified, you will have to appear for an interview.

It is best to know as much as possible about the course and the institutions that you have chosen. It takes around 15 days for an educational loan to be sanctioned. Once it has been sanctioned, you will get a promissory note which you will have to sign.

  1. In most cases, banks pay the institution directly and or to you.
  2. You should check the repayment clause.
  3. In most cases, repayment starts six months after the end of the course or as soon as you get a job – whichever comes earlier.
  4. Interest rates on educational loans depend on a number of factors.
  5. In general, they vary between 10% and 15% rates of interest.

You can claim tax deduction on the interest of the education loan. However, no deduction can be claimed on the principal. : Basic Criteria for Educational Loan
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How long does it take for student loan to be approved?

Short answer: it takes around 1 to 3 weeks to get a federal student loan, and 2 to 10 weeks to get a private student loan.
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How long does SBI take to disburse education loan?

What’s the SBI Education Loan process? – The WeMakeScholars team has simplified the entire SBI Education Loan Process as much as possible. Step 1: Fill the online application form. Step 2: Collect all your SBI education loan documents and submit to the best branch in your region (ask our financial officers about the best branches in your region to process SBI Education Loans).

Step 3: The reports are collected by the branch and forwarded to the processing centre. Mind you! At this point, the student cannot track the status of his SBI education loan application anymore. It passes through many different SBI personnel at many different levels. If you ever ask an SBI representative what the status of your SBI Education Loan application is, this is the only answer you will ever receive: “It is under process.” However, if you go through WeMakeScholars, there will be complete transparency regarding the status of your education loan file at every stage.

SBI education loan tracking is possible because WeMakeScholars is backed by the Corporate Centre of SBI- which is its highest office. Hence, every branch and processing centre gives us an update, and fast tracks the SBI Education Loan procedure if we ask them to.
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Can you get rejected for a student loan?

Best practices for applying for student loans – If you know that you’ll need student loans to pay for college, it’s important to understand what type of loans you’re applying for and what you’ll need to qualify. That can help you take any preemptive actions to raise your approval odds, such as boosting your credit scores or getting federal loans out of default.

When applying for student loans, it’s helpful to start with federal loans first. Federal loans offer benefits that private student loans do not, including income-driven repayment options and the possibility for loan forgiveness. Remember that you’ll need to resubmit the FAFSA each year to get the maximum amount of federal aid possible.

Your best resource for finding financial aid may be your school. The financial aid office should be able to give you more specific information about different funding options, how to apply for them, and what to do if you’ve been denied for federal student loans.

If you need extra time to address any issues that are keeping you from getting approved for student loans, you can still take part-time classes. You may need to pay for those classes out of pocket if you don’t qualify for aid yet. But that can be a good way to keep your education on track until you become eligible for loans.

Learn more: How student loans work
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Why am I not getting approved for student loans?

Why were you denied a student loan? – Every lender has their own requirements for getting approved for a student loan, Lenders may look at your employment history, credit score, debt-to-income ratio, and enrollment status at your school. One of the most common reasons why a student might not qualify for a private student loan is because they don’t meet their lender’s FICO® Credit Score criteria.

Your FICO ® Credit Score is a three-digit number that lenders use to measure how likely you are to be able to repay debt. If you’ve never borrowed or had to pay back money before, this number may not be high enough to qualify you for a loan. If you’re no stranger to borrowing but have missed or been late on payments, your credit score may have also been impacted and can affect your chances of getting approved.

Having a limited or bad credit history can make getting approved for a private loan difficult, but there are steps you can take to move if you’ve been denied a student loan.
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Which bank is easy to get education loan?

Compare Top Education Loan Offers 2022

Name of Bank Interest Rate (p.a.)
SBI 7.95% onwards
Axis Bank 13.70% to 15.20%
Bank of Baroda 8.50% onwards
HDFC Bank 9.55% to 13.25% (full-time course) 12.75% (part-time course)

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Is educational loan interest free?

The interest rates will be floating for entire period of loan – Education Loan Portal mean rate of interest 9.37%.

SBI STUDENT LOAN SCHEME
Loan Limit EBR CRP Effective Interest Rate Rate Type
Upto Rs 7.5 Lakhs 8.55% 2.00% 10.55% Floating
Concession 0.50% concession in interest for girl students
Above Rs 7.5 Lacs 8.55% 2.00% 10.55% Floating
Concession 0.50% concession in interest for girl students
0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favour of our Bank

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SBI SCHOLAR LOAN SCHEME (Including TAKEOVER and PART-TIME COURSES for select institutes) List EBR CRP Business Strategy Discount Effective Interest Rate Rate Type AA All IITs 8.55% 0.00% (-) 0.60% 7.95% (With or without co-borrower) Floating Other institutes 8.55% 0.05% (-) 0.60% 8.00% (With or without co-borrower) Floating A All IITs 8.55% 0.00 (-) 0.60% 7.95% Floating Other institutes 8.55% 0.50% (-) 0.60% 8.45% Floating B All NITs 8.55% 0.50% (-) 0.60% 8.45% Floating Other institutes 8.55% 1.00% (-) 0.60% 8.95% Floating C All NITs 8.55% 0.50% (-) 0.60% 8.45% Floating Other institutes 8.55% 1.50% (-) 0.60% 9.45% Floating
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SBI SKILL LOAN SCHEME Loan Limit EBR CRP Effective Interest Rate Rate Type Upto Rs 1.5 Lacs 8.55% 1.50% 10.05% Floating Concession No Further Concession

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SBI GLOBAL ED-VANTAGE SCHEME Loan Limit EBR CRP Effective Interest Rate Rate Type Above Rs.7.50 lacs & Upto Rs 1.5 Cr 8.55% 2.00% 10.55% Floating Concession 0.50% concession for students availing of SBI Rinn Raksha or any other existing life policy assigned in favour of our Bank Further Concession 0.50% concession for girl students

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SBI TAKEOVER EDUCATION LOANS SCHEME (Under Student Loan & Global Ed-Vantage Scheme) Loan Limit EBR CRP Effective Interest Rate Rate Type Above Rs 10 lacs & Upto Rs 1.5 Cr 8.55% 2.00% 10.55% Floating Concession 0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank Further Concession 0.50% concession for girl students

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SHAURYA EDUCATION LOAN (For wards of Defence & Indian Coast Guard ) Loan Limit EBR CRP Effective Interest Rate Rate Type Upto 7.50 lakhs 8.55% 2.00% 10.55% Floating Concession 0.50% concession for girl students Above Rs.7.50 Lakhs & Upto Rs.1.50 Cr In case of Secured Loan 8.55% 2.00% 10.55% Floating In case of Unsecured Loan 8.55% 2.00% 11.15% Floating Concession 0.50% concession for girl students 0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank

Last Updated On : Tuesday, 15-11-2022 How Long Does It Take To Sanction Education Loan
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How is education loan disbursed?

Loan Disbursement Process: Government Bank Education Loans – All the episodes in the Loanflix web-series begin with an elaborate explanation of the two major types of education loans in India. Since government bank education loan is the most sought-after category of abroad study loans, let us try and understand the education loan disbursement process of secured education loans from government banks.

Government banks approve the education loan by issuing a sanction letter to the respective students. On receiving the sanction letter, students and their co-applicants are expected to visit their respective branches for creation of mortgage and signing of the education loan agreement. Once the agreement has been signed by the students and their co-applicants, the education loan is ready to be disbursed. However, the education loan disbursement process does not commence immediately after students have signed the education loan agreement. In the next step, students are required to submit an education loan disbursement letter to their lending bank stating the method of payment of the tuition fees preferred by their respective universities. At certain times, international universities, especially those in the USA, prefer the payment of tuition fees via third-party payment services like Flywire, Globalpay, etc. Similarly, many students who are in need of an early disbursement of loan to study in countries like Germany and Canada also prefer paying their living expenses through third-party payment services. For the purpose of getting their education loans transferred at the right time, students are required to mention details of the preferred payment method to their respective government banks in an education loan disbursement letter which has to be submitted to their respective government banks post signing the loan agreement. On receiving the education loan disbursement letter, most government banks disburse the tuition fee component of the abroad studies education loan either directly into the university’s tuition fee accounts or via a third-party payment software the credentials of which are to be mentioned in the education loan disbursement letter by the students. All students need to bear an important point in mind. Government banks do not transfer tuition fees for the entire course at one go. The money is released as and when students submit a request to the bank which is either yearly or semester-wise, whichever is the interval preferred by universities for tuition fee payment. Coming to the loan disbursement process one of the most important parts of the study abroad loan, the living expenses, most government banks transfer a student’s living expenses into a FOREX card. This FOREX card is issued to students to make it easier for them to withdraw money during their stay abroad. However, the FOREX card comes with an expiry date. Most banks, like the SBI and Bank of Baroda, lease this FOREX card to higher education aspirants for a period of three months. Students are expected to open a savings account in their country of stay within this time period. Their respective government banks will then disburse the education loan into this savings account, as per the directions mentioned by students in the education loan disbursement letter to the bank, for the remainder of their course of higher studies.

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If you have any further doubts regarding the education loan disbursement process, do get in touch with the financial team of WeMakeScholars at the earliest possible instance. Our financial officers have a good grip on the topic and will be able to guide and assist you along the entire process. Read more on Can You Borrow Abroad Study Loan From Multiple Lenders?
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Is education loan easy to get?

Easily available: Education loans are widely and easily available. In fact, they are a priority product in all banks as per the RBI’s guidelines. Varied loan amounts: Banks can offer loans anywhere between Rs.2 lakh and Rs.
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Does everyone get approved for student loans?

How to Apply for a Student Loan Almost everyone qualifies for, though students with the greatest financial need can generally borrow under the best terms. The first step in applying for a student loan is figuring out whether you will be considered an independent student or one who is dependent on your parents.

You are over the age of 24. You are married at the time of applying. You are on active duty or are a veteran of the armed forces. You have children who receive at least half of their support from you.

Under certain circumstances, independent status may be granted to students who do not meet the requirements listed above. If you have questions about this, talk to the financial aid administrator at your school. He or she can make the final determination about your status.

  • Once you’ve figured out your dependency status, it’s time start gathering financial information for yourself (independent students) and your parents (dependent students).
  • This includes returns, statements and information about other financial assets,
  • You’ll also need social security/immigration cards for everyone on the application.

To qualify for financial aid, you also need to be working toward a degree in an eligible program. In other words, you may be applying to an accredited school, but the underwater basket weaving classes you plan to take could disqualify you for the loan if they do not count toward a certificate or degree.

Be sure to talk to a counselor about whether your courses are acceptable under your loan program. Once you’ve answered some questions about your dependency status and eligibility, it’s time to start comparing student loan programs. There are several different types of student loans, each with its own terms and conditions.

You may qualify for more than one type, so it’s important to understand how each works in order to make the best decision about financing your education. In the next section, we compare different types of student loans as well as the qualifications for each.
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Who qualifies student loans?

What are the Student Loan requirements in South Africa? – There are many financial institutions in South Africa, each of them with its own set of requirements for your study loan application. However, there are some mandatory requirements for all institutions:

You must be over the age of 18 The main debtor (i.e. your parent/guardian) who is responsible for signing the loan for you, also known as your “surety”, must earn a certain minimum income each month You must be registered as a student at a South African tertiary institution

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How do you know if you are approved for student loans?

Log in to StudentAid.gov using your FSA ID (account username and password) and select ‘My Aid’ under your name. My Aid displays information on all federal loan and grant amounts, outstanding balances, loan statuses, and disbursements.
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