Guide: H1B Visa Plan B: Learn More - 8 Options - Pros & Cons

How to Pay First Semester Tuition Fee Using Bank Education Loan

In most of your post regarding the student loans you used to say like we can get $10000 per year and out of which $6000 and the rest we can put in the checking account.

Do the bank (in India) actually give the amount directly to US? Also, if we pay the university, they won’t give us our livelihood expenses and insurance out of it? So? please advise.

From Vijay

Pay – Tuition Fees via DD

Vijay – Your question is bit unclear, but let me explain to my understanding.

  • Get Demand Draft from Bank in India for certain amount greater than estimated tuition fee
  • Sometimes Banks will give DD only in the university (Managers have to take educated)

Example – First semester Tuition fee – $6000. You can get DD for $10,000 (payable to the University).

Pay the fee using the DD ($10,000). University will process the fees. Lets sat it comes to $6500 (Including Insurance). Remaining $3,500 will be credited back to you. Typically university will send a personal check to your name.

You can deposit that check into your bank account (in US). Whole process takes about 20 to 30 days. When DD is deposited into bank, they will put an hold for the money to clear. Takes about 10 days to money to be cleared. Then University has to issue the credit to you.

You can check with the university for more details on how long it would take to get the refund.

Note – Vijay has stated that his bank manager will do wire transfer to university ONLY. While University will not accept wire transfer option. He has asked to find a university that will accept wire transfer (funny).


  1. deepak jai on August 27, 2011 at 4:53 PM

    Hello   Every Body!!!
    First of all, thanks to all for nice and ur important blogs which helps for new a lot.
    I am new here I want to do GRE but I dont have Idea that which Book will be good for preparing, and what is  requirement to give examination.
    I have economy problem to study in foreign and how i can take loan for this….

    Thanks in advance…..

  2. Swetha Selvam6 on August 25, 2011 at 5:09 AM

    Please provide  guidance on working when we study in US…. Please do share which might be a very useful one……… thanks in advance….

  3. Amar Jadhav60 on August 24, 2011 at 4:36 AM

    thanks prashant, it will be helpful for me.

  4. Prashanth Mannar on August 22, 2011 at 7:34 PM

    I took my educational loan Credila and right now I am in CU-Boulder… I have had a great experience with Credila till now… They sanctioned me 20 lakhs for the whole course (remember Credila funds more than 20L too unlike other Govt Banks…) They asked me how much money is required for the first semester, I had asked them certain amount for the Fees (to the univ) and some for my Living expense… Even the mode of transfer was the one i chose… I asked them to Wire transfer the fees to the Univ (the univ told me that Wire Transfer is their preferred method) and for my living expense, I had asked 1000$ in Forex Card and 2000$ in TC, which they did without any hassles… I just visited their office in Chennai twice… Once to sign the agreement and the next time for collecting the TC and the Forex Card… They approved the loan without my i20, without me visiting the bank even once and they sent me the Sanction letter in Courier… When hearing about these hassles which the fellow students face in govt banks, I think its time for the Govt banks to wake to the Private players…

    As it is the case with every other thing in this world, Credila too has some Cons… They are… Their interest rate is A BIT high… They offered me 12.95%… which is the highest they offer… depending upon the collateral you provide they reduce it further… As in my case, the collateral i provided to them was already under mortgage at HDFC (their parent company)… But still I think only a couple of banks offer interest rates which are lower than 12.95%… and the other thing is that, My parents need to pay the interest while i am actually studying here… Its not like some govt banks like SBI where you can waive off to pay the interest while you study… But still credila had an option for me… I can choose the % of the total interest i can pay them while i study… I chose to pay them 25% (which is the minimum) of the total 12.95%…

    WHY I WENT FOR CREDILA inspite of these Cons is that: Only Credila sanctions a Loan without a i20… I used my Sanction letter from Credila and showed CU-Boulder that I have enough funds for my studies (which i need to prove to any univ to get i20 from them) to get my i20… And the collateral i had planned for my Educational Loan was already under Mortgage at HDFC…

    So I dont regret taking Loan from Credila despite reading many negative reviews about them online, but I thank them each time when i come across posts like these, for the hassle free loan they offered me and I am here now in USA pursuing my Dream..! 

    • Amitha on April 28, 2013 at 12:21 AM


      Thanks for the post! I was looking for some reviews for Credila and to be honest, I found more negative ones than positive. Glad to hear that your experience with them has been good.
      I am planning to apply for a loan with Credila. How long do they take to give the sanction? Also, is it okay if my parent and I live in different cities and the collateral property is in the same city as my parent?
      Thanks for your time!

  5. Vijay Sankar V on August 22, 2011 at 6:14 PM

    Also, I forgot to add one more point. Recently, in Kerala they have implemented a rule such that if one is applying to an educational loan, he should go and seek only the bank which is allotted for his ward(residence). Every bank has been allotted so and so wards, and so that appropriate loan aspirants must approach only the assigned bank. I don’t know if this is implemented throughout India. This may also depends upon the bank manager. he has sole powers. (And mostly if your banker is impressed with your accounts or your parents account, he might not hesitate to grand you the loan no matter what ward you are in 🙂 ). Thanks again for the help HSB.

    • Santhosh Rajadayalan on August 22, 2011 at 6:44 PM

      The above said rule was told to me when i applied for loan in Madurai, Tamil Nadu. I gave a written request to the Collector he then forwarded the application to the bank.

  6. Raju on August 22, 2011 at 5:28 PM

    good one

  7. Vijay Sankar V on August 22, 2011 at 5:24 PM

    Thanks for the resource HSB. You understood my query even though I mis-explained. I think I have to educate the Bank Manager or try a new bank :).

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

New Comments Policy
Please use the Happy Schools Forums to post your Questions. Use the Comments Section to add value or contriute to the Article, not for Q&A. Questions posted in the Comments section will be Deleted.