Education Loan Sanction Letter: What Does it Mean and How Do You Get One?

education loan sanction letter
Home » Education Loan » Education Loan Sanction Letter: What Does it Mean and How Do You Get One?

The application process for student loans is drawn-out and difficult. You need to start by checking your loan eligibility. After reading all the conditions, you start to understand something. The application form must be finished in the following step. Do you own a list of all the paperwork you must submit? Probably not. As a result, you scramble to assemble the documents you must present the following day. Eventually, after this arduous marathon, you submit your loan application. You now have to await a letter. The wait is still ongoing… The procedure can, however, be sped up considerably if precise and useful information is provided. This blog explains education loan sanction letters in detail, including what they are, how to obtain them, when to do so, and more.

What is an Education Loan Sanction Letter? 

An official letter from the lender known as an education loan sanction letter contains important details about the loan, including the amount of the loan, the borrower’s name, the interest rate, the length of the loan, and other conditions. It proves that the borrower requested the loan and had it authorised. The borrower then only needs to ask for the loan money to be disbursed. 


Your sanction letter is valid for 6 months, so you must take your first disbursement within 6 months of its issue.

How to Get an Education Loan Sanction Letter?

Several overseas universities require applicants to show proof of their financial capability. When applying for a student visa to countries like the United States, the United Kingdom, Australia, and Germany, students must additionally present proof of funds. A Canadian study permit, for instance, requires students to show proof of financial support. A minimum fund requirement for the same is $10,000 (INR 8.1 lakh).  

Upon acknowledgement, the sanction letter can be emailed or physically given to the applicant/borrower. The letter is issued after the loan has been sanctioned and accepted.

Without cash, students were unable to obtain admission and a student visa; and without the visa and admission, they were unable to apply for a loan. As a result, a vicious cycle was developed that was difficult to escape. Pre-Approved Education Loan Sanction Letters are one direct solution. 

Pre-Approved Education Loan Sanction Letters

As previously said, students can apply for a loan after being admitted to a university, after which the sanction letter is granted. Some lenders will only release the funds after the student has gotten the study permission and visa. 

A provisional sanction letter for an education loan provided to a borrower before their university admission is known as an In-Principle sanction letter. A letter of in-principle sanction is another name for it. This letter can be used to show financial support throughout the application process for admission and, in some situations, the visa process. 

Students can apply for a quick education loan approval after receiving their standardised exam results. However, this financing is only available through a few lenders. Fly Finance assists students with pre-visa disbursement by contacting the appropriate bank official.

Documents Required

Depending on the type of lender, different documents are required to receive a sanction letter. Along with the initial loan application, these are submitted. A generic list of documents is provided below: 

Applicant Documents 

  • As evidence of address, a current copy of a utility, water, or phone bill is sufficient. 
  • Passport 
  • Academic transcripts from the tenth and twelfth grades, college work, and test results from entry examinations like the GRE, TOEFL, and IELTS
  • As further documentation of admission, students may offer a conditional offer letter of admission. 
  • A fully and accurately completed loan application form.
  • Identification documents such as the PAN card, and passport, are accepted
  • The total cost of education is stated in the expense statement. 
  • photos the size of a passport 
  • Please submit a one-year loan account statement if you have any prior loans from any lenders. 

Co-Applicants’ Documents

  • Proof of Identity 
  • Income proof varies based on the type of employment, such as self-employment or salaried.
  • Address proof
  • Co-Applicants who are Self-Employed – 
    • Proof of business address 
    • IT returns during the last two years 
    • TDS Certificate 
    • Qualification Certificate 
    • Last six months’ bank account statement 
  • Co-applicants who are Salaried
    • Salary slips for the last three months 
    • Copy of Form 16 or IT Returns for the previous two years.
    • Bank account statement of the last 6 months.


Loan Sanction Process

Public sector banks have a bit longer loan sanction process, most likely to offset the benefits of outstanding study abroad loan packages. The process can take up to a month, but with Fly Finance, the time is reduced to 14 days. 

The procedure for receiving the sanction letter is divided into three steps: 

  • Filling out an application form is the first step in the procedure for banks such as the Bank of Baroda and the State Bank of India.
  • The applicant must submit the documents listed above, as well as any extra documents that may be required in the case. 
  • The sanction letter is issued to the applicant once the application has been processed and accepted by the bank.

How Will Fly Finance Help you In Your Education Loan Sanction Process?

  1. One of the most significant benefits of applying through Fly Finance is that our team has a professional connection with sanctioning authorities and keeps a close eye on the process of your loan application. 
  1. Government banks are notorious for their lengthy loan processing, which is why most students apply through Fly Finance, as our relationship with the relevant banks allows us to process your loan in 12 to 15 days. 
  1. When students apply directly to government banks, the majority are not properly instructed, but our experts at Fly Finance will assist you throughout the loan procedure and will clear any misconceptions a student may have during the school loan process. Your processing officer will also accurately fill up all of the relevant details in the Vidya Lakshmi portal.

Must Read: Things To Know Before Applying For A Study Abroad Education Loan For Your Child


Q1. How do I get a sanction letter for an education loan?

Ans. Because the sanction letter is used as proof of money at several stages of the procedure, students can obtain an immediate sanction letter by pledging an FD with the bank. The loan has been pre-approved, and the sanction letter has been delivered to the registered email address.

Q2. How long does an education loan sanction take?

Ans. After submitting the necessary documents and papers, the Union Bank of India sanctions the loan within 7 working days. With the recent tie-up between Fly Finance and Union Bank of India, the process just got easier for the students.

Q3. What is the process after an education loan sanction?

Ans. When your education loan is approved, the lender will usually send the loan funds immediately to your educational institution. The disbursement will subsequently be confirmed to you.

Q4. Can an education loan be sanctioned in 3 days?

Ans. It is vital to learn everything you can about the course and the institutions you have chosen. An educational loan takes about 07 days to be approved. After it has been approved, you will be sent a promissory note, which you must sign. Banks typically pay the institution directly and/or to you.

This was all about the education loan sanction letter. If you wish to know more about education loans to study abroad, subscribe to Fly.Finance. Connect with our experts on 1800572126 and make your loan process smoother and faster.

About Vidisha Dewan

Graduated with English as a major, I’m a writing enthusiast. Writing helps me blend my passion and profession to achieve creative satisfaction. Here, you'll find content related to finance: bank accounts, money transfers, loans and more. Still learning about how to handle my own finances better, I keep sharing all the relevant information to help my readers as well. I try to keep my work surroundings creative and fun, with space for constructive feedback.

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