The rules book of all major banks and financial institutions say that the students who need loan for study purposes should have a good credit history/credit score. However, if you do not come into that category, its not always the end of the line for you.
If you do not have good credit score or any credit history, you can also avail loan in case,granted you bring in whether your house member(s) or friend(s) with good credit history as co-signor(s). The co-signor(s) may be released if the main loan and interest are serviced properly and instantly for two years.
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Disbursal of the student loan is fraught with many procedures. The bank will pay the tuition/exams fees/books etc., directly paid to the form or the book vendors as and when needed. The second part of disbursements relates to your living/maintenance expenses. If you stay in a hostel, your hostel fees are paid directly and your sundry expenses are given by way of reimbursements. If you are a day master or you live on your own, you may get reimbursements when you supply proof of payment for whatever that you have paid. These are part of the disbursal of loan.
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