Students think tuition fees and living expenses are the only important things when applying for an education loan. Miscellaneous expenses such as books, travel tickets, laptop also play a huge part. Learning how to reimburse miscellaneous expenses from your education loan can help manage your finances.

In this blog, we will go through the details of reimbursing miscellaneous expenses from your education loan.

Understanding Miscellaneous Expenses in an Educational Loan

Generally, education loans can pay for additional expenses, and it depends on the lender. Commonly covered expenses include:

Study materials: Textbook, stationery, and all other items related to study materials.

Travel costs: Travel costs include your flight tickets, the transportation between your home and university.

Course-related fees: Examination fees, caution fee, library fees, and lab fees.

Health Insurance: Cost of medical treatments and insurance premiums, especially for overseas students.

It’s important to verify with your lender what can be miscellaneous and how it can be paid back.

Can Banks give Miscellaneous Expenses in an Education Loan

Yes, most of the banks give miscellaneous expenses as part of an education loan. But this depends on the bank policies. Not every bank covers all the miscellaneous expenses. Let's see which bank covers the type of expenses.

Bank Type

Miscellaneous expenses

Public Bank

Admission fee, Examination fee, library and lab fees, purchase of books, caution fee, and purchase of a laptop/computer, travel tickets.

Private Bank

Admission fee, Examination fee, library and lab fees, purchase of books, caution fee, purchase of a laptop/computer, travel tickets, and health insurance.

NBFC’s 

Admission fee, Examination fee, library and lab fees, purchase of books, caution fee, purchase of a laptop/computer, travel tickets, health insurance, and travel insurance.

Private banks and NBFCs add health insurance as part of miscellaneous expenses, which public banks do not add.

Steps to Reimburse Miscellaneous Expenses in an Education Loan

Follow these steps to reimburse miscellaneous expenses in an education loan.

  1. Keep receipts, invoices, and other proof of purchase related to your miscellaneous expenses.

  2. Submit your receipts to the bank to prove your legality.

  3. The bank will verify and take a few days to approve the expenses.

  4. Once the bank approves, the money gets credited to the account from which you have purchased.

Documents Required for Reimbursement of Miscellaneous Expenses in an Education Loan

While requesting reimbursement of miscellaneous expenses, you need to provide the following documents.

  1. Proof of purchase for every purchase you made.

  2. If you are claiming health insurance, you will need to provide the insurance policy.

  3. Banks sometimes ask you to show bank statements from where you have paid.

Risks to Avoid When Reimbursing Miscellaneous Expenses 

  • Always keep your receipts or invoices safely to prove that you are claiming.

  • Purchase the items that are included in your miscellaneous expenses. Banks do not disburse amounts which is not in their policy.

  • Make sure you are submitting your proofs on time. 

Request a callback from our education loan experts
Request a Callback  

How can WeMakeScholars help?

Applying for an education loan can be very hectic, especially when you need miscellaneous expenses to be covered. Here's when WeMakeScholars comes into the picture. 

WeMakeScholars is an organization, funded and supported by the Ministry of IT, Govt of India, under the Digital India campaign.

We are partnered with 14+ public and private banks. Going through us will make your process easy.

Here's how we help you

  • Loan Comparison: We compare education loan offers from different banks and give you the best education loan options.

  • Convenient Process: You can get all the information from us just by sitting at home. If you approach the bank directly, you need to visit at least 2 to 3 times for information.

  • Guidance: WeMakeScholars gives guidance to students about their education loan process. This includes disbursement, repayment, and reimbursement.

Conclusion

Reimbursing miscellaneous expenses from an education loan can give relief to the students. Keeping all the documents and proof can make your reimbursement process smoother. Apply through WeMakeScholars to get expert advice on your education loan.