Education loan disbursement is a crucial part of the education loan journey. At this stage, the lending institution disburses the funds, enabling you to pursue your education at your chosen educational institution. For the fastest student loan disbursement, which will allow you to access funds when required, it is essential to understand each step involved in the process, so you can avoid any misstep or oversight.
Key highlights:
- Benefits of Student Loans
- What You Must Know before the Student Loan Disbursement Process
- Avanse Loan Disbursement Process
- When Does Avanse Loan Disbursement Occur?
- Benefits of Taking a Study Abroad Education Loan from Avanse
Benefits of Student Loans
An education loan is a fantastic tool for funding your education independently, without relying on your parents. By repaying your student loan, you can take pride in earning a self-made badge.
Fund Education Independently
Education loans offer you the opportunity to take on the responsibility of your own education and learn financial discipline. When you understand your obligations, you learn how to budget and manage your finances responsibly.
Access Quality Education
With a student loan, you don’t have to compromise on your higher studies. These loans make quality higher education more accessible for students who may lack the financial means to cover the associated costs upfront.
No Need to Liquidate Assets or Family Savings
Education loans negate the requirement to sell or liquidate your family’s assets, which ensures that there are no disruptions to long-term financial planning.
Build a Healthy Credit Score
Responsible management of an education loan by making timely repayments helps build a healthy credit score and history, which is crucial for your financial future. A healthy credit score can unlock several benefits when you opt for other financial solutions such as a home loan, car loan or credit card.
What You Must Know before the Student Loan Disbursement Process
Meet Basic Eligibility Criteria
Students can apply if they are Indian citizens who are 18 or older, have a confirmed admission before the final disbursal and have a co-borrower who earns in India. Furthermore, the co-applicant should be an Indian citizen and should be a parent, legal guardian, sibling or blood relative. The co-borrower should have a bank account in India that allows them to sign cheques and should be a primary debtor.
Your Documents Will be Evaluated
Before education loan disbursement, your submitted documents will be verified. For the fastest student loan disbursement, it is important to ensure that the documentation has been done properly.
Here are some of the important documents required for an education loan:
Applicant
- 2 colour passport-sized photographs
- Photo ID
- Proof of residence
- Date of birth proof
- Signature verification
- Academic documents
- Proof of admission
- Fee structure
Co-Applicant
- 2 colour passport-sized photographs
- Photo ID
- Proof of residence
- Date of birth proof
- Signature verification
- Income proof
- Collateral documents (for secured student loans)
- 8-month bank statement
- Relationship proof
Your Student Profile Will be Analysed
Your student profile will be thoroughly assessed to determine your potential for employability. This will involve evaluating several parameters, such as your academic scores, scores in entrance exams, university pedigree, and continuity in education, to name a few.
The Co-Applicant’s Background Will be Examined
The financial background of the co-applicant is evaluated, given that the co-applicant is equally responsible for repaying the student loan as the borrower.
Avanse Loan Disbursement Process
The Avanse education loan disbursement process involves multiple steps, including:
- Loan Application: The student loan process starts with you filling out the education loan application either online or offline.
- Consultation: Speak to our education loan consultants to understand the education loan process and to clear your doubts (if any).
- Documentation: Collate required documents and submit them.
- Verification: Documents, student profile, and co-applicant’s background are thoroughly assessed. Please remember that a letter of admission from your preferred university helps confirm course details, fees, and associated expenses, which is essential for designing and offering a hyper-personalised education loan solution.
- Sanction: Once all eligibility criteria are met and you tick all the boxes, the student loan is sanctioned.
- Disbursement: Education loan disbursement is done in tranches based on the university’s requirements. Tuition fees and on-campus accommodation costs (if any) are sent to the university directly based on the agreed-upon payment schedule. The amount for other associated expenses is transferred to the bank account of the borrower or co-borrower in instalments over the course duration.
Also Read: Do You Need a Co-signer for an Education Loan - Here’s What NBFCs Say
When Does Avanse Loan Disbursement Occur?
At Avanse Financial Services, education loan disbursement is done once it has been ascertained that the borrower and the co-applicant meet the set eligibility criteria and if all required documents have been successfully submitted by them and verified.
Benefits of Taking a Study Abroad Education Loan from Avanse
Flexible Borrowing Solutions
Avanse Financial Services offers both secured and unsecured abroad education loan, ensuring easy access to funds for all deserving students.
Quick Sanctions
Loan applications are processed quickly to ensure a hassle-free experience and timely admission without delays. Please note that the turnaround time may be longer if the necessary documents and other aspects are not in place.
Flexible Repayment Options
You can choose from a range of repayment plans based on your financial situation, so you can repay the education loan at your own pace.
100% Loan Coverage
At Avanse Financial Services, you can avail an education loan that offers 100% finance for your course fee, living costs, and other education-related expenses.
Pursuing your higher studies can bring numerous opportunities for career growth. With Avanse Financial Services, turning that dream into reality has become easier than ever before. Get in touch with us if you want to understand student loan or education loan interest rates better!
