Disbursement
Education Loan Disbursement Process
A sanctioned loan isn't money in your account. Disbursement happens in stages, usually per semester, directly to the university, with living costs released separately.
- Tuition paid to the university
- Living costs to your account
- Per semester, not all at once
- No TCS on loan-funded fees
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Quick answer
Education Loan Disbursement Process
After you sign the loan agreement, the lender remits tuition directly to the university, usually semester by semester against the fee invoice, and releases living costs to the student's account or forex card. You'll need the visa, fee invoice, signed agreement and an A2/LRS form. Since 1 April 2025, there's no TCS on education remittances financed by a loan from a financial institution.
Process
How disbursement works
- 01
Sign the agreement
Loan agreement, promissory note and, for secured loans, the mortgage documents.
- 02
Share the visa and invoice
Most lenders disburse after the visa is approved, against the university's fee invoice.
- 03
Tuition remittance
The lender sends tuition directly to the university's account by SWIFT.
- 04
Living costs
Released to the student's account, a forex card or the co-applicant's account as per policy.
- 05
Next semesters
Send each new invoice and your enrolment/transcript; the lender disburses the next tranche.
- Signed loan agreement and sanction acceptance
- Copy of visa (or proof of enrolment for later semesters)
- University fee invoice with bank details
- Form A2 / LRS declaration for foreign remittance
- Margin money receipt, if applicable
- Previous semester transcript (for later tranches)
FAQs
Frequently asked questions
Still have a question?
Ask a counsellor directly — we reply on WhatsApp during working hours (Mon–Sat, 9 AM–6 PM IST).
Some lenders disburse a deposit or first tranche before the visa if the university requires it; most wait for visa approval.
No. Since 1 April 2025, education remittances financed by a loan from a financial institution carry no TCS. Self-funded education remittances above ₹10 lakh a year attract TCS.
Rarely. Lenders disburse per semester or year, which also keeps your interest lower.
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- How Much Education Loan Can I Get to Study Abroad?
- Is a Co-Applicant Mandatory for an Education Loan?
- Education Loan Without a Co-Applicant for Abroad Studies
- Education Loan Interest Rates for Abroad Studies
- Education Loan Tax Benefit: Section 80E and Section 129
- Education Loan Moratorium Period Explained
- Margin Money in Education Loans: How Much You Pay
- Education Loan Documents List for Abroad Studies
- Education Loan Process for Abroad Studies
- All loan guides
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