After 1 month you will receive your cheque by courier and you should immediately deposit it in your bank because it will take approximately 1 month to clear the cheque.
First of all you should pay 1year full tution fee.
Secondly, i don't think loan is the main reason for visa Denial.
You can give details of all the funds in sop.
I will suggest you to order caips notes before reapplying your visa.