In How Many Days Education Loan Is Sanctioned?

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In How Many Days Education Loan Is Sanctioned
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.

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. 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.

  • If you are going to study abroad, you need to produce your passport with a valid visa also.
  • Your education loan will cover a number of things in addition to your tuition fees.
  • These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects.
  • 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.

In most cases, banks pay the institution directly and or to you. You should check the repayment clause. In most cases, repayment starts six months after the end of the course or as soon as you get a job – whichever comes earlier. Interest rates on educational loans depend on a number of factors. 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 a 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 much time 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).

  1. Step 3: The reports are collected by the branch and forwarded to the processing centre.
  2. Mind you! At this point, the student cannot track the status of his SBI education loan application anymore.
  3. It passes through many different SBI personnel at many different levels.
  4. 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.
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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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How long does it take to pay education loan?

Plan To Repay –

In case of SBI Student loans, repayment will start after the completion of course period and moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). The Loans are sanctioned as Term Loans and to be repaid in EMIs over a maximum repayment term of 15 years (180 EMIs) for Student, Scholar and Global Ed-vantage Education Loans. The repayment of EMI starts 12 months after the completion of the course or 6 months after getting the employment, whichever is earlier for Student and Scholar Loan Schemes. In case of Global Ed-Vantage Loans, repayment of EMI starts 6 months after the completion of the course. The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI). If full interest is serviced before the commencement of repayment; EMI is fixed based on principle amount only. There are NO penalty charges for prepayment. You can prepay your education loan anytime.

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What is disbursed amount in education loan?

What is Margin Money for SBI Education Loan? – Important to Understand Before the Disbursement. – Out of the total financial cost of studying abroad, the amount of money a student is supposed to bear is called loan margin. Since SBI is a public sector bank, the exact loan margin percentage depends upon the amount sanctioned.

  • Minimum, it is 10% of the entire expense.
  • Let’s say a student needs INR 100 from SBI to pay the tuition, and the margin set as per the loan amount sanctioned by the bank is 15%.
  • Then the bank gives INR 85, and the balance tuition of INR 15 is paid out of the student’s pocket.
  • You can read the blog to understand how SBI exactly calculates the margin money,

Using a more realistic case, if the complete expense of studying in the US for two years is INR 50 Lakh, and SBI sanctions INR 40 Lakhs, in that case, INR 10 Lakhs i.e.20% becomes the margin money. The applicant pays it. All scholarships and fellowships are counted as part of margin money.
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Can you get rejected from student loans?

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.

  1. 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.
  2. You may need to pay for those classes out of pocket if you don’t qualify for aid yet.
  3. 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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How do I know if my student loan is approved?

To check the status of your PLUS loan application, contact the Federal Student Aid Information Center at 1-800-433-3243, or initiate a chat on StudentAid.gov.
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What happens after education loan is sanctioned?

ICICI Bank –

  • The ICICI bank education loan process is similar to the Axis Bank – starting with the loan application form and document submission, after which the students will receive their sanction letter.
  • However, ICICI Bank also provides an Instant education loan with an instant sanction letter. The sanction letter is used as proof of funds at various steps of the process, therefore, students can get an instant sanction letter by pledging Fixed Deposit with the bank.
  • The loan is pre-approved and the sanction letter is electronically sent to the registered email address.
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Read about the rest of the ICICI Bank education loan process here,
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Which bank is best for student loan?

List of Educational Loans – Leverage Edu has formulated a list of best education loans in India that can help you reach your dream university:

Bank Student Loan Interest for Indian Universities Student Loan Interest to Study Abroad
Axis Bank 13.70% 13.70%
Bank of Baroda 7.70% 8.35%
Bank of India 9.05% 9.05%
Canara Bank 8.50% 8.50%
Central Bank of India 8.50% 8.50%
Federal Bank 10.05% 10.05%
IDBI Bank 6.90% 8.40%
Indian Overseas Bank 10.65% 10.65%
PNB 7.05% 10.65%
SBI 7.00% 8.80%
UCO Bank 9.30% 9.30%
Union Bank of India 8.40% 8.05%

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What’s the maximum student loan amount?

$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students -No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
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Can I take 2 education loans?

Can I get a second Education loan? – The answer is YES, you can get a second education loan provided you meet the requirements for the second education loan. You can opt to take this loan either from the same bank you had taken the loan from for your graduation or from a different lender.
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Can I get education loan directly to my bank account?

Education Loan Disbursement Process of NBFCs – The disbursement of education loans by NBFCs is pretty simple and easy to understand. Unlike government banks, which require loan applicants to submit an education loan disbursement letter to the bank, NBFCs do not require a disbursement letter.

The education loan disbursement time of NBFCs is way faster in comparison to public banks. Since there is no involvement of collateral, the education loan disbursement time taken by NBFCs is way shorter. NBFCs disburse the education loan amount according to the candidates’ convenience. If candidates require the entire education loan amount to be credited to their accounts, NBFCs comply with the requirement and transfer the loan amount directly to the student’s account or to the university’s account.

As mentioned above, it depends on the student’s preference. Since they do not necessarily have to comply with the norms laid down by RBI for disbursement of education loans, NBFCs do not have subsidized interest rates for education loans, and they do not exactly have to worry about the way in which students use the education loan amount.

The education loan disbursement process is not exactly complicated. However, there are a lot of myths going around regarding the exact procedure. Through this article, we aim to dismiss these myths and give you a clear picture of the whole process. Do keep reading our blog to get answers to some of the most complicated questions related to the abroad education loan process.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile.
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Is hostel fee included in education loan?

The loan will cover tuition fees, hostel charges (if any), cost of books, etc.
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Do they forgive student loans after 10 years?

The Public Service Loan Forgiveness (PSLF) program was established in 2007 to help borrowers pay off their student loan debt easier and faster. Under the federal program, eligible borrowers can have their loans discharged after 10 years if they meet eligibility requirements.
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Who gets denied 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.
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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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Are you automatically approved for student loans?

Can you be denied a federal student loan? – Yes, you can be denied a federal student loan for many reasons. It’s a common misconception that completing a FAFSA loan application means you’ll automatically get approved for federal student loans. In reality, not everyone is eligible. So, what disqualifies you from getting financial aid? Here are at least seven potential reasons why:

  1. You’re not making satisfactory academic progress at your school.
  2. You’ve defaulted on an existing federal student loan.
  3. You owe a refund on any previous federal grants.
  4. You’re enrolled in an academic program that makes you ineligible for funding.
  5. Your eligible noncitizen status was revoked or expired.
  6. You’re incarcerated.
  7. You pled guilty to a crime involving federal student aid fraud.

You can also be disqualified for federal student loans if you fail to meet any of the baseline eligibility requirements. If you’ve been involved in a drug-related crime, you may still be able to get federal student loans upon completion of a rehabilitation program.
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Why haven’t I received my student loan yet?

Why hasn’t my student loan turned up? – There could be lots of reasons that your student loan hasn’t come through, including:

Student Finance could just be behind on processing loans. They may not have all the information they need from you. Check you’ve filled in all your forms and sent any extra documents they’ve asked for. Remember, you have to re-submit your application every year. Are you sure you applied again?

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What time does student loan go into bank?

Bottom Line – What time does student finance go into the bank? It usually takes 3-5 days after the scheduled date. To make sure your payments aren’t late, it’s important to apply on time and provide all the necessary documentation to avoid any delays, which, in some cases, can affect your initial payment.

My name is Marija, and I’m a financial writer at DontDisappointMe. Although finance might not be everyone’s cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself).

No longer having the passion to work in a corporate setting, I decided that I couldn’t let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible.
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Is it hard to get approved for student loans?

What credit score is required for a private student loan? – If you’ve maxed out federal student loans and you need a private student loan, you’ll need a credit history to qualify. Most private lenders require you to have a credit score of at least 670 or higher on a 300-850 scale used by FICO, the most widely known credit score.

  1. If you don’t have a credit history, you’ll need a co-signer with a good credit score and a steady income in order to qualify for the loan.
  2. A co-signer takes on the responsibility to repay the loan if you can’t.
  3. There are a few lenders that don’t require credit or a co-signer,
  4. Generally, they’ll consider earning potential instead of a credit history.

But interest rates on these loans are higher than federal student loans and credit-based private student loans. Compare offers from multiple lenders to get the best rates.
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Are you automatically approved for student loans?

Can you be denied a federal student loan? – Yes, you can be denied a federal student loan for many reasons. It’s a common misconception that completing a FAFSA loan application means you’ll automatically get approved for federal student loans. In reality, not everyone is eligible. So, what disqualifies you from getting financial aid? Here are at least seven potential reasons why:

  1. You’re not making satisfactory academic progress at your school.
  2. You’ve defaulted on an existing federal student loan.
  3. You owe a refund on any previous federal grants.
  4. You’re enrolled in an academic program that makes you ineligible for funding.
  5. Your eligible noncitizen status was revoked or expired.
  6. You’re incarcerated.
  7. You pled guilty to a crime involving federal student aid fraud.

You can also be disqualified for federal student loans if you fail to meet any of the baseline eligibility requirements. If you’ve been involved in a drug-related crime, you may still be able to get federal student loans upon completion of a rehabilitation program.
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