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Processing time

Most bank claim to disburse the loan money within one to two days after the required papers are submitted to them. A checklist is provided to the person seeking loan giving the details of the required documents like proof of age, address, admission expenses, assets and liabilities of co-obligants, details of collateral security, certificate of last qualifying examination etc. However experienced loan-seekers say getting loan from banks is an uphill task. There are students who could get the loan, but after the deadline for fee deposit had expired!

Documentation terminology

Adjustable Rate Loan
Adjustable rate loan is one where the rate of interest is linked to the Prime Lending Rate. It is also known as "Floating Rate Loan". If you have opted for adjustable rate loan, then you stand to gain if interest rates drop. Likewise you need to be prepared to take the risk when interest rate increase. Therefore, in this case the gain/ loss of interest rates fluctuation is borne by the borrower. The rate on loan is generally revised on regular intervals.

Application
A form used to apply for a loan, on which you'll put relevant information about yourself. Also refers to the whole process of applying for a loan.

Appreciation
An increase in the value of a property due to changes in market conditions, or for other reasons. The opposite of depreciation.

Asset
Anything with a rupee value that you own. Your assets are tallied up when the bank is trying to figure out what it can afford to lend you. You don't have to own something "free and clear" for it to be considered an asset. Say you have a house, on which you owe money to a bank or mortgage company. The amount you owe is considered a liability; the amount you've already paid off is an asset.

Bonafide
In good faith, real, not fraudulent.

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