Can education loan cover fees already paid?


My son got admission to college recently and I have paid his first semester fees. Now, I am planning to apply for a education loan for my son. However, will the loan cover the entire fees of the four-year graduation programme or are such loans disbursed separately for each semester? And if it is the latter, will I be eligible for the amount paid as fees for the first semester?

—Naresh Khanchanda

Generally, in India, education loans are approved for the entire duration of the course. The loan amount will be disbursed directly to the educational institution on a semester or annual basis as desired by the educational institute. Some financial institutions might require the submission of marks or progress reports at regular intervals to continue the disbursement, and any other documents as per their requirement.

Some banks and financial institutions in India can provide reimbursement for the fees already paid for the first semester, but that is dependent on the lender. You would need to check with the lender concerned and provide proper documentation, such as fee receipts and payment confirmations, and adhere to the specific guidelines laid down by the lender.

Sometimes, colleges and universities have tie-ups with certain banks and can provide guidance on how to apply for an education loan. They may even have specific loan officers or coordinators who can assist you in applying for the education loan. Often, such institutional tie-ups can provide better deals for the borrower.

Consider applying for the education loan to different banks and non-banking financial companies to find the deal that best suits your needs. Interest rates, loan terms, and eligibility criteria might differ with each lender. In an education loan, one of the most important criteria is the period of repayment moratorium. So, keep that in mind when going through the terms and conditions offered by the lender.

Raj Khosla is founder and managing director of

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Updated: 21 Aug 2023, 10:47 PM IST

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