Education and Career Forum

Hi,
I came to know that Bank will deduct some amount in education loan first then handed it to the college. Is it true? If yes then I should apply for more amount of education loan against the total expenses?

1. First of all, you cannot apply for education loan which is more than the total study expense of the concerned course as the bank will check all the fee structure documents of the concerned institute before sanctioning loan. If found more, it will simply reject the loan request.

2. A certain amount of money is needed to paid by you during every disbursement of loan amount. This amount of money is know as marginal amount as a security. It depends on the amount which you are taking as education loan, like for loan between 4.5 lakhs and 7.5 lakhs, it is 15%. So every time the bank disburses loan for your college fee you need to pay 15% of the disbursement amount to the bank.