📋Application:
Students or their parents initiate the process by submitting an application to the lender. The application usually includes details such as the selected course, name of the educational institution, estimated total cost, and the applicant’s financial background.

✅Approval:
The lender reviews the application based on several criteria, including the applicant’s credit score, academic record, the institution’s reputation, and future earning potential. If approved, the lender issues a sanctioned amount, interest rate, and repayment conditions.

💳Disbursement:
After the applicant accepts the loan offer and completes the required documentation, the lender disburses the sanctioned amount. This can be paid directly to the educational institution or deposited into the borrower’s bank account. The funds are intended for tuition, study materials, living costs, or accommodation expenses.

🔁Repayment:
Repayment generally starts after a predefined grace period, which varies by lender. This period usually begins after course completion or once the borrower finds employment. Many lenders provide flexible options such as interest-only payments during study or deferred repayments until graduation.

💰Interest:
Interest accumulates on the outstanding amount and is typically calculated on a reducing balance basis. The interest rate may either be fixed for the loan term or vary with market trends, depending on the lender’s terms and conditions.

🏁Loan Closure:
Once the entire principal and interest amount is repaid, the loan account is officially closed. Some lenders offer benefits like interest rate discounts or waivers for early or timely repayments, encouraging financial discipline.