If you do not have good credit score or any credit history, you can also avail loan provided you bring in either your family member(s) or friend(s) with good credit history as co-signor(s). The co-signor(s) may be released if the main loan and interest are serviced properly and promptly for two years.
The rules book of all major banks and financial institutions say that the students who need loan for study purposes should have a good credit history/credit score. However, if you do not come into that category, its not always the end of the line for you.
Disbursal of the student loan is fraught with many procedures. The bank will pay the tuition/exams fees/books etc., directly paid to the institute or the book vendors as and when needed. The second part of disbursements relates to your living/maintenance expenses. If you stay in a hostel, your hostel fees are paid directly and your sundry expenses are given by way of reimbursements. If you are a day scholar or you live on your own, you may get reimbursements when you provide proof of payment for whatever that you have paid. These are part of the disbursal of loan.
These disbursements are governed by the following terms and conditions.
1. The first is that you should be consistent in your studies.
2. Banks and FIs always encourage servicing the interest through family or through the income you get from a part-time job.
3. The loan, together with interest (if not serviced before) has to be repaid in easy monthly installment loans for bad credit after the course is completed. Usually you get a moratorium period of six months after the course completion to enable you to get a good job and settle comfortably to repay the loan.