Central Bank is one of the most preferred public sector banks for education loans. The bank offers quick education loans to study abroad with an easy documentation process and quick transfer. Central Bank education loan disbursement process is done online, and the required amount to cover education fees, accommodation costs, etc, is transferred directly to the university.
The transfer of funds from the Central Bank to cover the tuition fee is done in line with the completion of a semester i.e. the fee for each semester is transferred at a time. The bank never transfers the entire course fee at one time. Let’s understand all the details about the Central Bank education loan disbursement process.
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About Central Bank Education Loan Disbursement Process
Loan disbursement refers to the transfer of funds from the loan account to the respective beneficiary. Central Bank education loan disbursement is done after verification of all the documents. After complete verification, the bank will transfer the required amount to the university through an online wire transfer or any other suitable method.
The process of loan disbursement is the final stage of the education loan where the funds are transferred to the university and you start your study abroad journey without worrying about the finance.
Also Read: Are you aware of the difference between sanction and disbursement letters? Check this blog and know the difference between loan sanction letter and loan disbursement letter
Central Bank Education Loan Disbursement Process
The Central Bank education loan disbursement process involves a lot of stages like submitting loan applications, loan sanctions, documentation processes etc. After completion of all these stages, the bank disburses the educational loan amount. Check all the details below:
- Submit the loan application along with supporting documents through online mode or by visiting the nearest branch. You can also submit the loan application through Central Bank Vidya Lakshmi Portal education loan
- The bank will initiate the verification process and check your eligibility, income, credit history and score, university, course etc
- After the verification process, the bank will provide you with an education loan sanction letter which contains your total loan amount, interest rate, repayment period and other terms and conditions
- If you agree to the mentioned terms and conditions the bank will initiate the education loan disbursement process
Documents Required for Loan Disbursement
After the education loan sanction, there are certain documents which you are required to submit in the bank for initiating the education loan disbursement process. If you delay submitting the required documents, the bank may cancel the loan disbursement. Check the details of the documents below:
- University acceptance letter or admission letter
- Copy of Visa approval letter of the primary applicant
- Copy of the air ticket of the primary applicant
- Details of Accommodation
- Documents contain the details of the health and travel insurance of the student
Also Read: Do you have additional funds and want to foreclose your loan? Check out all the details on early repayment charges on education loan
Example of Education Loan Disbursement
Manish is a student who was admitted to Manchester University, UK. The overall course fee was INR 20 lakh for 2 years. He got the education loan of INR 16 lakh and the rest of the amount was arranged by his savings. At the time of loan disbursement, the bank transferred INR 4 lakh towards the first semester’s tuition fees. The rest of the instalment was lined up and ready to be disbursed after completion of the previous semester.
This whole process of transfer of fees to the university account from the bank is known as education loan disbursement.
FAQs
After the verification process, the bank will transfer the loan amount to the university account in less than 72 hours.
No. The bank will transfer the loan amount directly to the university account and you will not get any amount in your savings account.
The education loan is disbursed in multiple instalments in line with the semester or year, which is being followed by the university. If you quit studying before the course duration, then you must inform the bank and ask not to disburse any further instalments. However, you will be liable to repay the loan as described in the loan agreement.
You can get an education loan from the Central Bank at an interest rate of 10-12% per annum. The rate of interest may fluctuate based on the RBI regulations and IBA’s revision of the education loan scheme.
Usually, an education loan covers tuition fees, accommodation fees, laptop fees, two-wheeler expenses and other study-related expenses.
This was all the details about the Central Bank education loan disbursement process. Always go through the terms and conditions properly before applying for an education loan to study abroad.
To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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