Education Portal for Students in India

What Is A Demand Letter? – A demand letter for an education loan is a formal document sent from one party to another in order to settle a dispute. The sending party may send one requesting payment or other action to right a wrong or settle a grievance.
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How to write a letter to bank manager for education loan sanction?

Sample letter for education finance – To The Bank Manager ABC Bank XYZ Branch Address City From Anita Address City Date: XX/X/20XX Subject: Application for the education loan Sir/Madam I am writing this letter to apply for a student loan to pursue higher education in English Literature.

1. I recently completed my Bachelor’s in English Literature from the University of Delhi with a 9.7 CGPA.
2. Besides, I scored 85% marks in the All India Senior School Certificate Examination (AISSCE) with a Science background.
3. I applied to the University of Pennsylvania for a full-time Master’s degree in English and have been selected for the programme.

The total hostel fee, cost of education accessories, tuition fee, and boarding expenses in the United States is approximately Rs.20 lakhs. Due to my humble family background, I’m unable to afford the cost and require financial assistance. I request you to grant me a personal loan for higher education at this prestigious university.

• I will repay the loan amount on time.
• I have attached my academic records, credentials, acceptance letter and other relevant documents with the letter.
• I am looking forward to your response.
• Thank you.
• Yours sincerely, Anita After formally putting your request forward with aletter for education loan, you must wait for the lender to approve and sanction your loan.

Additional Read: Recent Changes Happening in Higher Educations in The New Normal World
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How to write a letter to bank manager for education loan disbursement?

I/We have been sanctioned an Education loan by your bank for pursuing the Education course. I/We request you to kindly disburse the amount as per below details.
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Is CAS required for education loan?

The admission process to study in the UK – Before you dive right into the exact process of fulfilling the financial requirements to study in the UK, here is some information on certain documents that students are required to submit to the UK embassy in order to qualify for a UK student visa.

• The CAS is a unique number allotted by a student’s immigration sponsor in the UK (in this case, this sponsor is the university in which the student wishes to pursue their higher studies).
• The CAS number is a requirement to qualify for a tier 4 UK visa process. Students may be required by their respective universities to pay a certain token amount in order to receive their CAS certificate.
• This certificate is generally issued by universities 4 months prior to the start of the course.

Academic Technology Approval Scheme (ATAS) Certificate:

• Students who plan on pursuing postgraduate courses in certain fields only need an ATAS certificate in order to be eligible to apply for a UK Student visa.
• An ATAS certificate is valid for six months from the date of issue. This leaves aspiring candidates with sufficient time for their visa process. The UK government recommends students to apply for this certificate at least 9 months prior to the start of their visa process.
• You can check whether your course requires you to submit an ATAS certificate for your course, here,

Coming to the admission process, the following important steps have to be followed by students in the UK admission process:

1. Apply to universities and receive an admission letter.
2. Obtain their CAS and ATAS certificates as soon as the admission letter from the respective university has been received.
3. To receive a CAS certificate from the respective university, a certain amount has to be deposited as token money, by the candidates.
4. Apply for a Tier 4 (UK student) visa process. This process would take at least 15-20 days when you apply through VFS Global.

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How do I disburse my education loan?

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.

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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How many days it will take to sanction a educational 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.

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. However, if your loan amount is between 4 lakhs and 7.5 lakhs, you will have to provide third party guarantee to the bank. 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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Can loan be rejected after disbursement?

Top 5 Reasons Why A Home Loan Can Be Rejected After Sanction Owning a home is among the top aspirations of individuals. Investment in real estate is often for life and costs a lot, making it difficult to own them just out of your personal funds/ savings.

• Availability of a home loan comes as a big savior here.
• However, as is a big-ticket and long-term commitment, there is a big risk involved in lending.
• In addition, the lack of transparency in real estate dealings makes matters worse.
• Though lending for buying real estate constitutes among the priority sector lending, lenders go through a lot of due diligence before taking the decision to lend.

As a famous saying goes ” There is a slip between the cup and the lip”, the same can be true for home loans as well. The normal steps followed in a home loan application process (in short) are as follows:

Borrower approaches the bank/ financial institution after finalizing the property Submission of required documents like home loan application, income proof, income tax returns, identity proof and the documents pertaining to the property Due diligence of the property documents and the personal documents of the borrower by the lender Sanction for home loan Actual disbursal

You must have noticed that the bank gives a sanction for the home loan at first and then goes forward for disbursal. However, at times, it is quite possible that your application for home loan is rejected at the last moment in spite of a sanction being issued earlier.

The same may be the case for a pre-approved home loan, where the lender already has an agreement with the developer for lending loans for buyers of the project which may subsequently be denied. What might be the reason to withdraw an approval? It is very important for you to know the reasons due to which a home loan might be rejected after a sanction so that you can be well-informed about the do’s and don’ts while applying for a home loan.

Additional Reading:
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What is sanction letter in education loan?

Education loan sanction letter – A sanction letter is defined as an official statement provided by the loan lending bank to an applicant which specifies rudimentary data like course details, the amount of loan sanctioned for education, borrower’s name, lender’s details, guarantor’s details, rate of interest, margin percentage, repayment period, security offered if any and other terms and conditions of the bank.
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What proof is required for education loan?

Documents for Education Loan for all other Individuals –

KYC documents Bank Statement / Pass Book of last 6 months Optional – Guarantor Form Copy of admission letter of the Institute along with fees schedule Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses

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Can I get education loan without admission letter?

(b)Why should I get loan sanction before admission? –

The preferred way to declare ‘Assured Funds to Universities’ Better acceptance of the sanction letter over the solvency letter Increases your chances of getting admission to your dream college No last minute surprises specially during Visa time: Know your loan eligibility in advance Quick and hassle free process to get a sanction letter

No. You can apply for education loan before getting admission confirmation from University / College. If your case is approved, you’ll get a conditional loan sanction letter. This helps many students get confidence that their funds can come from HDFC Credila.
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Can CAS get rejected?

Confirmation of Acceptance for Studies (CAS) is a very important document you need to be aware of if you’re planning to study in the UK. You are issued a CAS letter after you’ve accepted an admission offer and have made the payment to lock your seat at the university.

1. It contains information such as the student’s personal details, chosen program, duration of the program and a unique CAS number.
2. This letter is sent only after you’ve met all the set academic and financial criteria, listed in it.
3. You may also have to fill out an acceptance form, deposit the acceptance fee and complete a pre-CAS procedure.

A CAS number is required due to the norms set up by UK immigration which need the university to sponsor the student’s application for a student visa. This number confirms the student’s acceptance of the unconditional offer made by the university. You must have a CAS before applying for the UK Student Visa (Tier 4 General),

CAS is an electronic document issued to you by the college or university that you have chosen to study at. Your CAS will be valid for student visa application for six months from the date of issue. Although many universities in the UK send the CAS letter themselves, there are few institutions which will need you to apply for the CAS number.

Your institution will also send a unique reference number that will match up with your CAS. You must mention this reference number on the Tier 4 visa application form. The visa official processing your application will check this number and corroborating documents to confirm that you have an unconditional offer from the university.

Your college will also send along the information they have used to generate your CAS. This is called a ‘CAS statement’ and it is sent to you by email. The CAS statement is not required for your Tier 4 visa application but it gives all the information about your course and sponsor and some information about the money that you need to complete your Tier 4 visa application form.

In case there are any inconsistencies between the information used by the university to create the CAS and the information you provide on your application form, then your visa application could get refused. The CAS statement tells you the following information:

14-digit reference number for the CAS Sponsor License Number (SLN) of the university where you intend to study Sponsor License Address Qualifications which helped you secure a place in the university Start and end dates of your course Passport number and your name on your passport Title of the course Tuition fees for the first year or the entire course. Any tuition fees that you have already paid to the university Any accommodation fees that you have already paid Assessment of your English language ability i.e. IELTS or TOEFL scores

The important thing to note is that you may obtain CAS from several different universities. However, before you apply for your Tier 4 student visa you must decide which university you intend to study and use the CAS from that university in your application.

• Once you do that, any other CAS you have been issued will become ‘obsolete’.
• This means that you will not be able to use them for the visa application.
• When your student visa has been granted and you enter the UK, you must study at the university/college that issued your CAS.
• What is a Combined CAS number? This is a CAS number which is issued to those students who will be pursuing more than one course together at the same university.

Through a combined CAS number, students can apply for one visa which will permit them to stay in the UK till both their courses are complete. General CAS letter issuing procedure

An email will be sent by the UK university to the email ID provided by the student for the purpose of admission. They will then have to log in to the provided link in the email. An option will be displayed to the student on the screen to check his/her CAS statement. At times, students may be required to request a CAS number. For this purpose, they will have to upload documents such as financial evidence, academic certificates, TB certificate, and an ATAS certificate. After submitting these they will obtain a link which will direct them to their CAS statement. Evert relevant detail related to the student’s admission will be there in the CAS statement. A student may also have to provide some extra information here and verify all the details provided by him/her. In case of any error in the CAS statement, the student will have to send an email to the admission executives regarding the same, along with the rectifications. After all the details are submitted students will receive one more email regarding the final CAS statement and CAS number.

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What happens to education loan if visa is rejected?

Situation 1: Re-applying for a visa to study in the same country, university & course with an abroad studies education loan – One of the best policies adopted by most Indian lenders is that students can hold on to their sanction letters of an abroad study education loan for up to six months’ time.

This is applicable to students who have borrowed a collateral-based, abroad studies education loan from government banks. In light of the present circumstances in which countries are rejecting student visa applications due to the scare of the COVID-19 pandemic, most NBFCs have extended this time period to one year for unsecured education loan borrowers.

So, the study abroad education loans of students who re-apply for their student visa within six months of their education loan being sanctioned are not affected at any cost, unless they plan to apply to another country/course post the first rejection of their student visa.

1. Such students are not required to inform their respective banks regarding the student visa re-application.
2. This is applicable to both, secured, as well as unsecured education loans.
3. Instead, they can directly re-apply and provide the same abroad studies education loan sanction letter which was issued to them in the beginning.

If you are still confused about re-applying for your student visa, or need further clarification regarding the above steps, do not hesitate to reach out to the financial team of WeMakeScholars.
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Can a loan get rejected after sanction letter?

Key points to remember –

Find out the home loan application procedure of the financial institution, before applying for a home loan. This will make the process easier for you.

The applicant should know that the amount of loan sanctioned can be lower than the loan amount that he/she applied for, depending on the credit history. For example, this can happen if the applicant has outstanding payments for other loans.

Before signing the acceptance, the applicant should carefully check all details given in the document, including the interest rate. See also:

Additional documents, as required, must be provided before the validity of the sanction letter ends.

Verify the details of the property you plan to purchase. Banks are likely to reject the loan application, if the property does not have a clear title or if there is a lack of approvals from the builder’s side.

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How do I write a letter to the bank about a loan sanction?

7. Application Letter for Loan from Bank –

• From,ABC Near _, Sector 17, Hyderabad.
• To,The Branch Manager,Bank of India,
• L Block XYZ Road, Hyderabad.
• Date:- Date/Month/Year
• Subject:- Application letter for a loan of amount _.

Respected Sir/Madam,My name is “mention your name” and I am a worker having a monthly salary _. I need an Rs _ loan from your bank. My savings bank account number is ************. I have enclosed all the documents that you need for my loan approval.

1. Therefore, kindly approve my loan because I need urgent money.
2. Thanking You,Yours FaithfullySignature
3. Contact No:- XXXXXXXXXX

: Request Letter to Bank Manager for Loan (Format & Samples)
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How do I write a letter of sanction?

FAQ’s on Sanction Letter – Question 1. What is a Sanction letter? Answer: A sanction letter is a formal letter issued by a bank to a loan applicant when they are deemed eligible to avail loan. This letter is also used by financial institutions for the same purpose.

Question 2. Who provides a Sanction letter? Answer: Sanction letters are provided by banks and financial institutions to an individual who has applied for a loan. Question 3. What are the contents of a sanction letter? Answer: A sanction letter contains the following details: The total amount of loan sanctioned; the repayment tenure for the loan amount; the applicable interest rates for the loan; the interest’s base rate; EMI details and pre-EMI details (if applicable); the sanction letter’s validity; additional terms and conditions of the lending institute.

: Sanction Letter | What is Sanction Letter? Whom Give it and Documents Required for Sanction Letter
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