Yes, you will have to arrange the margin money before the bank disburses your loan amount.
Margin money is the customer’s contribution in the loan amount. For example, in SBI’s Global Ed-Vantage loan scheme there is a 10% margin money. So, if the loan amount sanctioned is INR 30 lakhs, you will have to contribute 10% which is INR 3 lakh.
There are two ways to deposit the amount -
- You can either directly pay the university this amount and show the receipt to the bank, after which they will transfer the rest of the amount.
- Or you can deposit the money in the bank account after which the bank will transfer the entire amount to the university.
You will have to arrange the margin money depending on the disbursed amount. If the bank has disbursed only a part of your sanctioned amount then you will have to arrange 10% of the same.
I hope this clears your doubt.