Availing Overseas Education Loan is a common practice amongst the study abroad aspirants. A lot of information is available on internet and all the other information sources but the disbursement of education loan for higher studies abroad is one of the lesser discussed aspects, which will be targeted in this article. The study abroad applicants face a lot of agony of not being able to understand the exact procedure regarding the disbursement of living expenses that is followed by NBFCs and government banks.
This disbursement of living expenses through study abroad loans are applicable to students who are planning to fund their higher studies with an education loan for studying in Canada and Germany. In these countries there are accounts known as GIC and Blocked Account which cater to the living expenses of the students.
GIC/Blocked Account are the accounts where the international students have to create in the designated international bank account. Once the study abroad loan is sanctioned under the student’s name, a particular amount that is defined by the abroad country government must be deposited in those account. Every month a stipulated amount would be released from that account to survive the month.
Procedure of Living Expense Disbursement through GIC/Blocked Account?
To deposit the entire year’s living expenses into a savings account, the students who plan to pursue their higher education in Germany and Canada these accounts are required. In Canada the savings account is referred to as a GIC (Guaranteed Investment Certificate) account and in Germany it is called as Blocked account.
Now, before commencing the student visa process, students who wish to study in Canada and Germany are required to open their GIC and blocked accounts respectively. To approve a pre-visa disbursement of the living expenses for this very purpose is one of the biggest hurdles faced by students from the lending banks. As of today, if it is a mandatory requirement for students to fulfil any financial obligations all government banks are required to approve this disbursement in order to get the student visas approved.
The Working of a Foreign Travel Card
In government banks such as the SBI, Bank of Baroda, etc. an FTC or a Foreign Travel Card is issued to students to withdraw their living expenses while studying abroad. The tuition fees and living expenses are two different components of an education loan for studies abroad which is a common knowledge.
The FTC is loaded with the living expenses. This makes it clear that that this card is issued to students for only one single reason – living expenses. As soon as the international students land in a foreign country it generally takes them a lot of time to open their own savings account. Hence, in order to make it easier, and save time in receiving the living expenses while studying abroad, the government banks issue the FTC before landing on the foreign land.
From the education loan for studies abroad account in India irrespective of the kinds of overseas education loan, the students can use this card to withdraw their living expenses for the first three months of their stay. They will be required to open a bank account, post this period. The living expenses will be transferred to their bank account abroad for the rest of their stay, once the details of this account are sent to their lending banks in India.
In order to approve of the disbursement of your living expenses, if your loan manager is asking for your student visa as proof, do keep in mind that this is not true. To transfer the required funds, all the government banks have an obligation.
This is all about the disbursement and pre visa disbursement for an overseas education loan. You can check for online loan application for abroad studies to avail a study abroad loan.
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