Education Loan Sanction Letter: Know Everything!

 

Table of Contents

1. What is an Education Loan Sanction Letter?
2. Why an Education Loan Sanction Letter is Important? 
3. Education Loan Sanction Letter Format and Sample 
4. How Do You Apply for an Education Loan Sanction Letter? 
5. When Will You Get Your Education Loan Sanction Letter? 
6. Does an Education Loan Sanction Letter Confirm Your Loan? 
7. What is a Pre-Approved Education Loan Sanction Letter? 
8. Role of Your Education Loan Sanction Letter in Your Student Visa 
9. Frequently Asked Questions

 

Getting an education loan to study abroad solves your financial problems and allows you to achieve your dream education overseas. The loan sanction is the real turning point in the education loan application process. A sanction letter is an official document that confirms your eligibility for an education loan and lets you proceed with your admission and visa processes. 

What is an Education Loan Sanction Letter?

An education loan sanction letter is your lender’s official document confirming your loan. It contains detailed information about your education loan, such as the loan amount, interest rate, name, course details, university address, and cosigner details. 

You and your cosigner must read the terms and conditions of the education loan and sign the document acknowledging your understanding and acceptance of the education loan offer. 

Why an Education Loan Sanction Letter is Important? 

An education loan sanction letter is proof of your acceptance of the education loan. A signed education loan sanction letter indicates you are offered an education loan and are willing to accept it. 

A signed education loan sanction letter can be proof of funds for your educational costs abroad. This sanction letter can serve as proof of your student visa funds during your student visa interview. 

Education Loan Sanction Letter Format and Sample

The education loan sanction letter format is different for lenders. Each lender adopts a convenient format and includes details according to their preferences. Given below is a sample of an educational loan sanction letter. Look carefully and see what details are mainly included in the education loan sanction letter: 

  Sanction Ticket – Education Loan

Ref: Ref/10-09/2025 -26                                                                 Date: 10/09/2025

Product code: 8204-0053

To,

Mr. Rahul s/o Narayan

Mr. Narayan s/o Lakshman  

No.2 D Love Shore Street

Bangalore – 560004 PIN

Dear Sir, 

Sub: Sanction of Education Loan to Mr Rahul for INR 30 Lakhs 

We are pleased to inform the competent authority has accorded sanction to the following facilities: 

Particular	Applicant	Co-applicant
Name	Rahul	Narayan
Net Worth as of 10/09/2025	INR 3 Lakhs	INR 25 Lakh

Nature of Facility	Limit	Margin	ROI	Repayment	Purpose
Education Loan to study abroad under the special scheme	INR 30 Lakhs	5%	10.5%*	204 Months (24 months course period + 12 months holiday + 168 monthly repayment)	To pursue an MSc in Advanced Computer Science at the University of Manchester

*Repo 6.5% + Spread 4%. Any change in the policy of the Repo Rate will be implemented from the first day of the subsequent calendar month as per CO guidelines. 

EMI Amount	INR 30,967
Processing Fee	INR 10,000
Local Account Branch	Love Shore -1, Bangalore IFSC Code: VJBN0D
Penal Interest	In the event of loan default, there will be a 2% penalty charge to the EMI.

Please acknowledge the terms and conditions and accept the offer. 

Regards

Manager

How Do You Apply for an Education Loan Sanction Letter? 

The lender provides an education loan sanction after evaluating your loan application. Here are the steps to apply for an education loan sanction letter: 

• Choose your lender and loan type.
• Fill out the application form.
• Upload the documents. 
• Wait for the lender’s decision. 
• If your application is approved, pay the processing fee.
• Once you paid the fee, you will get the education loan sanction letter from your lender. 

When Will You Get Your Education Loan Sanction Letter? 

There is no separate application for your education loan sanction letter. When you complete your education loan application process, the lender reviews it and evaluates your submitted documents. Once your application is accepted, you will get an education loan sanction letter via email or post. 

Does an Education Loan Sanction Letter Confirm Your Loan? 

An education loan sanction letter is the official confirmation for your education loan. You can submit the document for official purposes, such as admission. However, a sanction letter is not the ultimate confirmation of your education loan disbursement. There are cases when an education loan is cancelled even after providing a sanction letter. 

What is a Pre-Approved Education Loan Sanction Letter? 

A pre-approved education loan sanction letter is provided when your education loan application is accepted before you get admission to a university. A pre-approved sanction letter is conditional. Your pre-approval will be cancelled if you don’t meet the requirements after getting a sanction letter. 

Role of Your Education Loan Sanction Letter in Your Student Visa 

An education loan sanction letter can be used as proof of funds for your student visa application. It shows you have enough funds to sponsor your studies and living abroad. Prominent study-abroad destinations like the US, the UK, Canada, Australia, and New Zealand accept education loan sanction letters as proof of funds. 

In short, getting an education loan sanction letter is important for your admission and study visa needs. One challenge ahead is the long-stretched process with the chances of being overwhelmed. Don’t worry anymore, as Nomad Credit simplifies it for you. Our counsellors evaluate your profile and offer tailored guidance to secure a sanction letter quickly after negotiating with the lenders. Connect with us today. 

Frequently Asked Questions 

What should be done after getting an education loan sanction letter? 

Once you receive your education loan sanction letter, read the terms and conditions carefully. Sign to accept the offer and send it back to the lender to proceed to disbursement. 

Can you reject your loan offer after getting a sanction letter? 

After getting a sanction letter, you can reject an education loan offer. You must provide the reason for rejection, and there will be a rejection fee. 

How many days are required to send an education loan sanction letter?

The days required to send an education loan sanction letter depend on your chosen lender. It can be from 3 – 5 business days to 15 – 30 business days. 

What is the validity of an education loan sanction letter?

Usually, education loan sanction letters are valid for 3 – 6 months. During this time, you can complete your admission and study visa process. 

How to get an education loan sanction letter from your bank? 

Approach the bank and fill out the form. Submit recent photographs and other documents. Once the application is approved, the bank will send you a sanction letter.