IndusInd Bank provides financial assistance to students aspiring to pursue higher education in India or abroad by providing personal loans for education of up to INR 5 lakhs at interest rates as low as 10.5% p.a. It covers expenses like tuition fees, examination fees, cost of travel, medical expenses, and other miscellaneous costs. The good news is that the IndusInd Bank Education Loan Disbursement Process is smooth and hassle-free. In this blog, we will walk you through the process and the necessary documents required.
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Also Read: Check out our blog on one of the most flexible alternatives to finance your study abroad dreams- gold loan for education: benefits, criteria, documents & process.
IndusInd Bank Education Loan Disbursement Process
Education loan disbursement means receiving the education loan availed for higher studies. In this step, the banks transfer the tuition fees and accommodation directly to the university’s account on behalf of the student.
Just like any availing any other loan, an Education loan from IndusInd Bank has a streamlined process. Let’s have a look at the comprehensive steps involved.
Application Submission
All aspiring students begin their journey by submitting a complete loan application with accurate details about the educational institution, course, and financial requirements with IndusInd Bank. This can either be done online through the bank’s official website or by visiting the nearby branch.
Verification Process
Once the application is submitted, the bank analyses your profile based on the eligibility criteria, income proof, credit history, course details, and other factors. Banks also assess collateral-related documents, when taking a secured loan from the bank.
Loan Approval and Sanction Letter
Once the documents are submitted and reviewed by IndusInd Bank, it will notify you of the loan approval status. This process usually takes a few days If approved, the bank will provide you with an education loan sanction letter outlining the terms and conditions. Carefully review the loan sanction letter and, if you agree with the terms, sign and return it to IndusInd Bank. This step signifies your acceptance of the loan agreement and indicates the IndusInd Bank Education Loan disbursement process starts after this step.
Loan Disbursement Process
Upon receiving your acceptance, IndusInd Bank will initiate the disbursement process. The funds are directly transferred to the educational institution to cover tuition fees, examination fees, and other related expenses. It’s essential to coordinate with your institution’s financial aid office to ensure a smooth disbursement process.
During the IndusInd Bank Education Loan disbursement process, three major steps are involved. These include document collection, signing the disbursement letter, and finally the loan disbursal.
- To support your application, certain documents must be submitted to the bank. These typically include:
a. Admission letter from the educational institution
b. Mark sheets and certificates of the last qualifying examination
c. Proof of identity (Aadhar card, passport, etc.)
d. Proof of residence
e. Passport-sized photographs
f. Income proof of parents or guardians
g. Details of collateral security (if applicable)
- The next step is to sign the loan disbursement letter which states the disbursement amount, date of disbursement, and the method of disbursement.
- This is the last step of the IndusInd Bank Education loan disbursement process. On successful agreement of the terms and conditions, the bank prepares a final loan agreement and transfers the necessary funds directly to the university.
Repayment of Loan
Once the loan is disbursed, the bank provides a moratorium period of course duration + 1 year. During this period, the student is not required to make any repayment. Repayment typically begins after the completion of the course or a specific grace period, allowing you to focus on your studies without immediate financial burden. IndusInd Bank offers flexible and convenient repayment options.
Also Read: Know all about LLB education loans to study abroad.
FAQs on the IndusInd Bank Education Loan Disbursement Process
Education loan disbursement means receiving the education loan availed for higher studies. In this step, the banks transfer the tuition fees and accommodation directly to the university’s account on behalf of the student.
The IndusInd Bank has an efficient education loan disbursement process, making it one of the preferred choices among students to avail of IndusInd Bank education loans to study abroad.
After submitting the disbursement-related documents, the bank will issue the disbursement letter. The applicant has to sign. Once done, the bank will disburse the tuition fee directly to the university’s account. The rest of the amount is disbursed to the student’s account.
The following documents must be provided by the students to ensure a hassle-free IndusInd Bank loan disbursement process– the university’s offer letter with a stated fee structure, accommodation fee break up, rent agreement documents, an estimate of average living costs, miscellaneous expenses, admission letter from the educational institution, mark sheets and certificates of the last qualifying examination, proof of identity (Aadhar card, passport, etc.), and proof of residence
Yes, IndusInd Bank is a preferred choice amongst students when considering education loans to study abroad. It offers competitive interest rates against education loans and the education loan disbursement process is simple, streamlined and efficient. However, the bank doesn’t provide post-disbursement support.
This was all about the IndusInd Bank Education Loan Disbursement Process. The process starts with filling out the application form and the bank analysing it based on factors like income, credit history, and eligibility criteria. Then, the verification process is started and once the loan is approved, the bank shares the loan sanction letter. After signing it, the loan amount is disbursed to the university’s account.
To know more about the education 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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