You borrow money to finance your higher education or college fees. Payments are often deferred while you are in college, and for a six-month grace period after graduation called moratorium period.
Many banks have special education loan schemes for meritorious and needy students. The fee for the course is normally disbursed to the college/institute directly by the bank.
While you apply for an education loan, the bank will verify the tenure of the course and determine its total cost. Every year, you are required to submit a form to the bank which gives the details of the money required, after which the bank directly disburses the loan to the college/ institute.