Terms and Condition for Pre-Visa Disbursal of Study Abroad Loan

Higher education abroad is now accessible with the growing options for assistance and fund management with the help of banks and other financial institutions. Foreign countries are coming forward to encourage international students to pursue higher education as well as research studies.
Students can now dream big, as now there are an all time effective student loans for studying abroad through the banks and NBFCs. Although, there are many glitches and hassles faced by the students while getting the loan processed and disbursed. There are some basic aspects that create these issues while applying for loans.

·         The country specific student visa rules

·         The respective university/ college fee payment requirements

Mostly, students assume that the tuition fees would be required after the visa is granted. All this id due to the lack of right information regarding the kinds of overseas education loan, the mode and methods of disbursal and the entire study abroad loan process. This further creates issues in Visa Application and approvals. 

This article will focus on all such primary aspects of overseas education loan and it connection with the visa for specific countries. Considering the countries where students prefer the most to study abroad, below is a brief data about the country educational expenses payable before  or after visa.

·         USA The tuition fees are to be paid after the visa is granted. There could be some universities and academic institutions that ask for initial tuition deposit fees before the visa, that range from $200 to $2,000

·         UK The tuition fees are to be paid before Visa application

·         Sweden the tuition fees (funds) are to be transferred to student’s loan account

·         Rest of the Europe the tuition fees are to be paid before Visa application

·         Canada – General One year living expenses (CD$10,000) in terms of GIC (Guaranteed Investment Certificate) + Initial Tuition Deposit before Visa application

·         Canada – SDS One year living expenses (CD$10,000) in terms of GIC (Guaranteed Investment Certificate) + One Year Tuition Fee before Visa application

·         New Zealand to be paid after the Visa: One year tuition fees + One year living expenses (NZ$15,000) in terms of FTS – (Funds Transfer Scheme) if asked by the Visa Officer

·         Australia One year living expenses (AUD $20,290) in saving account + one term/semester fees to be paid to the university: to be paid before the Visa Application

Herein, there can be two scenarios where:

1.      The University or Visa Authorities request to pay the tuition fees and/or living expenses before the issuance of the Visa.

The financial institution will disburse the tuition fees and/or living expenses in provision of refund policy in case of Visa rejection.

2.      The College or University or Visa Authorities request to have proof of funds prior to issuance of Admission Letter or the student visa in the loan account by disbursement.

The requested amount will be transferred or disbursed into the savings account of the student with a hold by the bank.

For each of the above, there are specific conditions due to the risk involved on the amounts:

·         Only one term/semester/year tuition fee will be paid

·         The student has to submit a copy of the Admission letter, College/ University’s ID card of the student and stamped copy of the Student Visa has to be submitted mandatorily in 90 days or next disbursement.

·         In case of rejection – the student is responsible to bear any differences in the amount occurred due to the forex regulations. (a written consent for the same is taken before the sanction)

The parents and students should always be attentive to all of these factors and policies for a successful foreign education loan and visa issuance, as funds for fees and living expense proof is one of the most important and responsible factors for education abroad.