An Education Loan Sanction Letter: A Comprehensive Guide

February 22, 2022

Whether you like it or not, an education loan sanction letter is an inevitable component of acquiring funds for your higher education. When you review the terms and conditions for applying for education loans, you will most likely begin by filling out the application form. You will also see a list of documents that you must provide in order to receive your student loan sanction letter. If you’re curious enough to know what this letter entails and what information it contains, this article will tell you all you need to know.

Firstly…What Is A Sanction Letter?

As mentioned earlier, when applying for a loan, you must submit a list of documents in addition to the application form. The lender looks through the paperwork and evaluates if you’re eligible for the loan amount and terms you’ve requested. The institution provides you, the borrower, a statement confirming that you have successfully applied for and obtained permission for the loan. The sanction letter is contained in this document.

An education loan sanction letter is a document that informs you that your student loan request has been accepted. It includes all of the pertinent details concerning your loan application, like the loan amount, your name, loan tenure, interest rate, terms and conditions, and so on. Following that, the lender approves the loan amount, and it is deposited into your account.

education loan sanction letter

When Will You Receive Your Education Loan Sanction Letter?

The sanction letter is either mailed or given to the borrower in a physical copy in lieu of acknowledgement. It is issued once the loan has been accepted and sanctioned, which occurs when the applicant has successfully submitted the loan application form and all relevant materials of evidence.

However, some international colleges demand students to present proof of their capacity to pay for their studies before admitting them. Students must also provide proof of money when applying for a student visa to nations such as the United States, the United Kingdom, Australia, and Germany. Students can not receive admission or a student visa if they lack cash, and they can not really apply for a loan if they don’t have the visa and admission. As a result, a difficult-to-break vicious cycle will develop during this process. A pre-approved education loan sanction letter is a convenient way to solve this situation.

What Is A Pre-Approved Sanction Letter?

A pre-approved education loan sanction letter is a conditional letter issued to a borrower prior to securing university admission. This document can be used to demonstrate financial assistance throughout the admissions process and, in some cases, the visa application process. After receiving their standardised exam results, students can apply for a fast education loan approval. However, this option is only accessible with a few lenders.

What Documents Are Required To Get Your Letter Sanctioned?

The documentation needed to get an education loan sanction letter differs according to the kind of lender. They are submitted in accordance with the main loan application. The following is a general list of documents:

  1. Application form of your Loan
  2. KYC Documents – PAN Card, Passport, Voter ID card, a recent copy of telephone bill, electricity bill, or water bill, 
  3. A Valid passport
  4. Academic Documents – 10th, 12th, undergraduate mark sheet, Test scores of entrance tests like GRE, TOEFL, IELTS, etc.
  5. Proof of admission (conditional offer letters are accepted)
  6. A statement of expenses including the entire educational costs
  7. Passport-size photographs
  8. Financial Documents – Loan account statement of one year, if there are any previous loans taken from any lender

Do keep in mind that the role of a co-applicant when borrowing loan matters in order to get your loan approved and sanctioned. There are certain terms and conditions for your co-applicant to be eligible as well, as explained below.

Who Is A Co-Applicant And What Is His/Her Role?

A co-applicant is an additional applicant who takes part in the loan application and processing. In some cases, a co-applicant may be considered a viable substitute for the primary applicant. In terms of their loan entitlements, a co-applicant differs from a co-signer or guarantor.

You cannot submit your loan application form without presenting the co-applicant’s documents and other supporting evidence. The primary role of a co-applicant is to offer a financial guarantee; it is his responsibility to return the whole loan amount if the primary borrower (the student) is unable to do so within the specified time frame. Even the loan amount is determined by the co-borrower’s income. It is the co-applicant’s responsibility to repay the loan if you fail to do so. As a result, it’s critical to think about the implications of becoming a co-applicant, as well as to grasp how significant he or she is in terms of an education loan sanction letter.

Thank you for reading this blog. If you’d like to read more, here are some blogs that might be of interest to you –


AaliyaWitten by Aaliya A piquant and humorous writer with the love to scrawl and create. For me writing is supreme. To believe that I can give words to my thoughts and connect to people through it is extraordinary.
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