The Living Expenses Disbursement Process for Study Abroad Loan differs from bank to bank and country to country. The lack of knowledge on loan disbursement process can burden the students.
In this article, we will understand the disbursement process of living expenses for Government banks, Private banks and NBFCs. We will also talk about the living expenses disbursement process for GIC Canada and Blocked Account Concept Germany.
As a student this article will help you understand the process of disbursement of loan for living expenses study abroad, so that you can follow the living expenses disbursement process correctly.
Government Bank Living Expenses Disbursement Process
In the education loan disbursement process, the government bank directly disburses the tuition fees to the university according to the requirements sent by the university. But for the living expenses of the student, students often get confused if the living expenses is also transferred to the university? The answer is NO.
The student will get their living expenses deposited into their own bank account or in a Foreign Travel Card (FTC). FTC is issued by the government bank itself. The student can use this card to withdraw money for living expenses while they are studying abroad.
FTC can be used till the time the student makes their account in the country they are going to for their higher education. It is recommended that the student makes their bank account within 3 months of reaching their study destination. After making the bank account, the bank will disburse money to the bank.
NBFCs and Private Banks Living Expenses Disbursement Process
When students want to get unsecured overseas education loan, they go to NBFCs and Private Banks. These financial lenders disburse the living expenses of the student according to the requirements of the student. The living expenses will be transferred to the student’s bank account.
International lenders Living Expenses Disbursement Process
In the disbursement process for international lenders, the loan amount is directly disbursed to the applicant’s university account. For students of the USA money is directly disbursed to the applicant’s university account after visa approval and the student reaches USA.
GIC and Blocked Account Living Expenses Disbursement Process
Students who have taken education loan to study in Canada and Germany should know about Guaranteed Investment Certificate (GIC) and Blocked account concept. Students are required to deposit living expenses for a year to a savings account. GIC account is required in Canada and Blocked account is required in Germany as savings account requirements. To start the visa process for Canada or Germany the student needs to deposit their living expenses in these accounts.
The student must inform the bank for this type of living expense loan disbursement. Financial lenders like government banks, private banks and NBFCs have different procedures for the transfer of living expenses to GIC and blocked accounts. You can contact your bank to know the loan disbursement process.
Living expenses is a major part of the education loan. We hope that with the above-mentioned information about living expenses disbursement process has been beneficial for your knowledge and has cleared your doubts.
With every passing year, the number of students taking Education Loan for Higher Studies Abroad is increasing rapidly. As a student you should be aware of the loan disbursement process to ease out the complications of loan processing. You can also contact the overseas education loan consultancy to get assistance for you loan processing.
