Does Credila disburse the entire sanctioned loan amount at once, or is it distributed semester-wise to the college?
Credila, like most education loan providers, typically disburses the loan in installments rather than providing the entire sanctioned amount at once. The disbursement schedule depends on the requirements set by the college or university and is usually done semester-wise or annually. Here’s a breakdown of how it works:
Key Pointers:
- Installment-based Disbursement: Credila disburses funds based on the fee schedule provided by your institution, ensuring the tuition is paid in accordance with the deadlines set by the university.
- College/University Fee Requirements: Generally, colleges and universities request payments semester-wise or annually, so Credila follows this timeline for releasing the funds.
- Direct Payment to Institution: In most cases, the loan amount for tuition fees is sent directly to the institution, ensuring timely payment without needing the student or parent to manage the transaction.
- Living Expenses: For living expenses or other non-tuition costs, Credila can disburse funds to the student’s account based on the sanctioned amount. This is usually done on a pre-agreed schedule, often coinciding with the semester or academic year.
Additional Information:
The reason for this staged disbursement is to match the student’s financial needs during their academic program. It prevents unnecessary interest accumulation on undisbursed amounts and ensures that the loan is utilized for its intended purpose at the correct time.
It’s advisable to discuss the disbursement process with Credila and your university to ensure smooth payment of fees and other costs throughout your study program.