Education loan SDS requirement for Jan2021

[Nottanyaverma]

Hi guys, this is Tanya. I've been admitted to the MSc in International Business at HEC MONTREAL for the winter 2021 intake (January).
My profile is as follows:
10th: 91.2%
12th:75%
UG: 87%
IELTS: 8
No full-time work experience

I'm a little confused, would appreciate your opinion on this:
1) The first-year tuition fee is approximately 21000 CAD x 55= 11,55,000 INR (As mentioned in my offer letter). I've applied for an unsecured loan from PNB for 7.5 lacs and the rest of the fee (4,00,000 lacs) would be paid by me, as well as the GIC (10,000 CAD). That would get me two fee receipts from HEC, one from what I paid, the other one from what my bank disbursed. Do you think that would be a problem?
2) I've heard some rumours about banks disbursing only half the amount of loan. So that would mean me getting only 3.5 lacs disbursed. How true is this? I talked to my branch manager but she isn't fully aware of the norms. Can anyone guide me?
3) I've planned to show the total one year fee receipt+ GIC and show my dad's and mom's ITRs (7 lacs and 5 lacs respectively) and my mom's FDs (around 10 lacs) for SDS VISA. Do you think it'll be sufficient?
4) I'll be able to apply for my study visa during the second week of September. Would it be too late considering COVID?

 

[darksouled]

1) Why don't you make two different payments to your student portal and ask for one single receipt from HEC? They should be able to provide you a single receipt saying that student ID xyz has paid 21000 CAD for the entire duration of one year.
2) No, the bank should disperse around 85% of the total amount required by you . Rest 15% is to be made by the individual. Better to get it clarified from the bank itself.
3) ITRs along with tuition and GIC receipt should be fine. Just make sure you convey the same in your SOP that you have sufficient finances in your additional documents while applying for a study permit.
4) I think the temporary measures put in place by IRCC for 2-stage approval is till 15 sept. only. You will be needing a CAQ as well before you can apply for a study permit.

 

[Nottanyaverma]

1) Why don't you make two different payments to your student portal and ask for one single receipt from HEC? They should be able to provide you a single receipt saying that student ID xyz has paid 21000 CAD for the entire duration of one year.
2) No, the bank should disperse around 85% of the total amount required by you . Rest 15% is to be made by the individual. Better to get it clarified from the bank itself.
3) ITRs along with tuition and GIC receipt should be fine. Just make sure you convey the same in your SOP that you have sufficient finances in your additional documents while applying for a study permit.
4) I think the temporary measures put in place by IRCC for 2-stage approval is till 15 sept. only. You will be needing a CAQ as well before you can apply for a study permit.

Thanks so much for responding!!
I've just now mailed my university for the same. Hope they'll be able to provide a single fee receipt. As far as the loan is considered, I'm taking an unsecured loan ( ie without collateral) so there isn't any margin system. So either the bank will disburse the entire amount or 50% of it because I've stated it's a two-year course.

 

[smitty]

Thanks so much for responding!!
I've just now mailed my university for the same. Hope they'll be able to provide a single fee receipt. As far as the loan is considered, I'm taking an unsecured loan ( ie without collateral) so there isn't any margin system. So either the bank will disburse the entire amount or 50% of it because I've stated it's a two-year course.

PNB doesn't need valid student permit for the foreign educational loan to apply at first place?

 

[Nottanyaverma]

PNB doesn't need valid student permit for the foreign educational loan to apply at first place?

No. Wouldn't that decline the whole purpose of applying through SDS?! And I don't think any bank requires a study permit before applying for a loan.

 

[smitty]

No. Wouldn't that decline the whole purpose of applying through SDS?! And I don't think any bank requires a study permit before applying for a loan.

wow strange...here in my city that pnb bank manager asked me for valid student permit to apply for the foreign educational loan.

 

[Nottanyaverma]

wow strange...here in my city that pnb bank manager asked me for valid student permit to apply for the foreign educational loan.

Sucks. Go for BOB or SBI. They have the lowest ROI

 

[sarab1402]

You can try with HDFC credila as well. They are fast as well as no such requirement of collateral. and they can give loan upto 20 Lakh.

 

[Simmidas]

Hi guys, this is Tanya. I've been admitted to the MSc in International Business at HEC MONTREAL for the winter 2021 intake (January).
My profile is as follows:
10th: 91.2%
12th:75%
UG: 87%
IELTS: 8
No full-time work experience

I'm a little confused, would appreciate your opinion on this:
1) The first-year tuition fee is approximately 21000 CAD x 55= 11,55,000 INR (As mentioned in my offer letter). I've applied for an unsecured loan from PNB for 7.5 lacs and the rest of the fee (4,00,000 lacs) would be paid by me, as well as the GIC (10,000 CAD). That would get me two fee receipts from HEC, one from what I paid, the other one from what my bank disbursed. Do you think that would be a problem?
2) I've heard some rumours about banks disbursing only half the amount of loan. So that would mean me getting only 3.5 lacs disbursed. How true is this? I talked to my branch manager but she isn't fully aware of the norms. Can anyone guide me?
3) I've planned to show the total one year fee receipt+ GIC and show my dad's and mom's ITRs (7 lacs and 5 lacs respectively) and my mom's FDs (around 10 lacs) for SDS VISA. Do you think it'll be sufficient?
4) I'll be able to apply for my study visa during the second week of September. Would it be too late considering COVID?

Hello Tanya, Here are my inputs based on my education loan experience and dealing with SDS requirement.
1. You do not need a single Payment receipts at all. Infact, most SDS Applicants will have multiple payment receipts and this is very normal.
2. Please get it confirmed from the bank that they are going to do pre-visa disbursement as many times public sector banks refuse it. You can utilise the whole amount.
3. It will better if you show the funds Availability for the whole cost of education i.e. total tution fees + 2 year living expenses. Because of COVID part time jobs scenario is not that great and VO would like to see the actual funds that can support your education.
4. It is right on time to make an application for Jan intake. If apply by Oct end or Nov mid, then also it's quite safe for SDS under normal conditions. You are right before time.

Since you have lots time, I would suggest you try for loans from other banks. Based on your profile and your admit with HEC, you can easily get unsecured loan of 20 lakhs. You can try contacting We Make Scholars or Gyandhan and these loan aggregators can help you get unsecured loan. Their services are free

Hope this helps

 

[Nottanyaverma]

Hello Tanya, Here are my inputs based on my education loan experience and dealing with SDS requirement.
1. You do not need a single Payment receipts at all. Infact, most SDS Applicants will have multiple payment receipts and this is very normal.
2. Please get it confirmed from the bank that they are going to do pre-visa disbursement as many times public sector banks refuse it. You can utilise the whole amount.
3. It will better if you show the funds Availability for the whole cost of education i.e. total tution fees + 2 year living expenses. Because of COVID part time jobs scenario is not that great and VO would like to see the actual funds that can support your education.
4. It is right on time to make an application for Jan intake. If apply by Oct end or Nov mid, then also it's quite safe for SDS under normal conditions. You are right before time.

Since you have lots time, I would suggest you try for loans from other banks. Based on your profile and your admit with HEC, you can easily get unsecured loan of 20 lakhs. You can try contacting We Make Scholars or Gyandhan and these loan aggregators can help you get unsecured loan. Their services are free

Hope this helps

I have a requirement of around 7/8 lacs only. The rest of the fees would be paid by my dad. I approached pnb for an unsecured loan because of how low it's interest rates were (I'm getting 7.85% ROI for an unsecured loan under 7.5 lacs), which is pretty damn amazing. I contacted we make scholars but the financial officer that was assigned to my case didn't answer any of my calls for a week which is why I have zero confidence in him. Gyandhan doesn't deal with unsecured loans.

 

[Simmidas]

I have a requirement of around 7/8 lacs only. The rest of the fees would be paid by my dad. I approached pnb for an unsecured loan because of how low it's interest rates were (I'm getting 7.85% ROI for an unsecured loan under 7.5 lacs), which is pretty damn amazing. I contacted we make scholars but the financial officer that was assigned to my case didn't answer any of my calls for a week which is why I have zero confidence in him. Gyandhan doesn't deal with unsecured loans.

Yes, yours is quite a deal and no one else will give such a ROI. I think even SBI won't give you this low ROI. Everyone has different experience with these loan aggregators.

 

[Nottanyaverma]

Yes, yours is quite a deal and no one else will give such a ROI. I think even SBI won't give you this low ROI. Everyone has different experience with these loan aggregators.

The interest rate at PNB is 8.85 for girl child but they'd deduct another percent if my dad pays the entire loan during my moratorium period which is 3 years. So that's a plus hehe

 

[Bhairav]

Tanya,

Firstly, If you have 10 lacs in hand why you want to take loan and end up paying interest to bank. For SDS file showing extra funds is not necessary. Many of my contacts got visas without showing funds with SDS file. May be tax returns are enough.
Secondly, if you still wish to have bank loan than why don't you take full loan against security deposit of 10 lacs FD in same PNB bank. They might give you full education loan with this setup of FD+ 7.5 lacs unsecured amount. Still you may get close to 18 lacs loan approval and with your academics higher chances of getting full loan.

 

[Nottanyaverma]

Tanya,

Firstly, If you have 10 lacs in hand why you want to take loan and end up paying interest to bank. For SDS file showing extra funds is not necessary. Many of my contacts got visas without showing funds with SDS file. May be tax returns are enough.
Secondly, if you still wish to have bank long than why don't you take full loan against security deposit of 10 lacs FD in same PNB bank. They might give you full education loan with this setup of FD+ 7.5 lacs unsecured amount. Still you may get close to 18 lacs loan approval and with your academics higher chances of getting full loan.

It's a bit tricky. My mom's not ready to pledge her FD money as collateral to the bank. That's where my dad gets in the picture. Otherwise, I could have easily gotten a loan against her FDs by now.

 

[Bhairav]

It's a bit tricky. My mom's not ready to pledge her FD money as collateral to the bank. That's where my dad gets in the picture. Otherwise, I could have easily gotten a loan against her FDs by now.

Okay but as I have seen cases it is very difficult to get loans from PSUs and specifically education loans. You will have actual idea after getting it approved. They may put new conditions out of box to secure your loan at some level and you will realise how small amount you will get at the end.
I had such experience with BOI for my close relative.