| The rules book of all major banks and financial | | | | way of reimbursements. If you are a day scholar or |
| institutions say that the students who need loan for | | | | you live on your own, you may get reimbursements |
| study purposes should have a good credit history | | | | when you provide proof of payment for whatever |
| credit score. However, if you do not come into that | | | | that you have paid. These are part of the disbursal of |
| category, its not always the end of the line for you. | | | | loan. |
| If you do not have good credit score or any credit | | | | These disbursements are governed by the following |
| history, you can also avail loan provided you bring in | | | | terms and conditions. |
| either your family member(s) or friend(s) with good | | | | 1. The first is that you should be consistent in your |
| credit history as co-signor(s). The co-signor(s) may be | | | | studies. |
| released if the main loan and interest are serviced | | | | 2. Banks and FIs always encourage servicing the |
| properly and promptly for two years. | | | | interest through family or through the income you get |
| Disbursal of the student loan is fraught with many | | | | from a part-time job. |
| procedures. The bank will pay the tuition/exams fees | | | | 3. The loan, together with interest (if not serviced |
| books etc., directly paid to the institute or the book | | | | before) has to be repaid in easy monthly installments |
| vendors as and when needed. The second part of | | | | after the course is completed. Usually you get a |
| disbursements relates to your living/maintenance | | | | moratorium period of six months after the course |
| expenses. If you stay in a hostel, your hostel fees are | | | | completion to enable you to get a good job and settle |
| paid directly and your sundry expenses are given by | | | | comfortably to repay the loan. |