Education loan sanction letter and process in India

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Introduction

The education loan process in India is a very long and daunting process as it involves multiple steps like fulfilling the eligibility criteria, documents, loan sanction, disbursement of the money, etc in order to finish the entire education loan process. After proceeding with these mundane formalities and undertaking the bank’s terms and conditions, you may understand a few intricacies of the education loan process. After being eligible for the loan, then comes the part where you wait for your loan approval but many  do not understand the procedure, what is a sanction letter, what all it includes, etc. This article will dive into the education loan sanction letter and process in India and will answer all your questions regarding the same. 

Most of the time when students approach the banks directly they may run from one pillar to another banging their heads in the banks, asking bank managers to guide them through the loan process, and after experiencing a whole torment, they finally get their loan sanctioned from the bank. But the story doesn’t end there, you wait again for your money to be disbursed by the bank. So, if this whole process concerns you, do not worry about that. Our dedicated team of professionals will guide you through the entire education loan process and the whole procedure will be made simpler than ever. Under professional expertise, you will experience a much faster, smoother, and hassle-free loan journey. 

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. Therefore a sanction letter for education loan acts as a proof of confirmation of the loan being granted by the bank. 

In-principle sanction letter

An in-principle sanction letter is a tentative sanction letter consigned by the bank to the borrower. It states a particular loan amount that will be sanctioned to a student if he/she is able to secure an admission in a particular university. This letter can be a proof to signify financial support during the admission process, and also during the visa process for selected countries. 

How to get an in-principle sanction letter? 

Students may need an in-principle sanction letter in order to secure admission to the university and to show proof of funds. Students can apply for an in-principle sanction letter soon after they find themselves eligible for an education loan. Followed by that, right after the admission confirmation from the university, they can move ahead in the loan process and get the final education loan sanction letter issued.

In a few cases, bank officials may create issues related to pre-visa disbursement, may only disburse the amount once they receive the study permit and the visa etc. Therefore, it is advised to apply through Vidyalaons as our processing officer shares a professional affinity with the banks and can resolve your issues with the concerned bank officials. 

Education loan Sanction process in Government banks

The education loan sanction process in Government banks is slightly protracted as compared to NBFCs or private banks and can take up to 1 to 2 months to process your loan. Hence, we  suggest you to apply for an education loan through Vidyalaons, as our processing officers will guide you through the entire loan process and will reduce the education loan sanction time to only 12-15 days.  

The process to receive the sanction letter for education loan are mainly followed by three steps: 

1. In Government banks like the State bank of India (SBI), Bank of Baroda (BOB), etc, you have to first fill up the application form with all the required details

2. Secondly, the applicant has to submit all the required documents to the bank. You can also check the documents required to take an education loan here. In multiple cases, banks solicit for state-specific documents which become strenuous for students to arrange at the last moment. Therefore, it is advisable that you apply through Vidyaloans to avoid last moment hassle. Our processing officer keeps a close eye on your loan application and will update the status to you on a timely basis. 

3. Once you are done submitting all the required documents and the bank has checked and accepted the same, they will release your sanction letter. 

Note: Government banks offer unsecured loans only up to 7.5 lakhs. For loans above 7.5 lakhs, the applicant has to pledge collateral in order to take a loan and submit original documents to the bank for loan approval. If you are facing any issues in finding the best option suitable for your profile, apply through Vidyaloans, where our dedicated team of professionals will help you find the best suiting your profile. 

How will Vidyaloans help you with your education loan?

1. One of the biggest advantages of applying through VidyaLoans is that our team shares a professional affinity with sanctioning officers and manages to keep a close check on your loan application status. 

2. Government banks are mostly known for the slow processing of loans because of which most students apply through VidyaLoans as our rapport with the concerned banks makes it possible to process your loan in 12 to 15 days. 

3. When students directly apply to Government banks, most of them are not guided properly but our team at VidyaLoans will help you throughout the loan process and will clear all the doubts a student may have during the education loan process. Your processing officer will also fill in all the required details in the Vidyalakshmi portal accurately.

About the organization: VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.