Yes, having an account with the lending bank is generally necessary to avail an MBA education loan in India. Lending institutions typically require borrowers to have an account with the bank from which they are seeking an education loan. This is done to facilitate smooth and efficient loan disbursement, repayment, and other related transactions.
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Advantages of having account with the lending bank:
When the loan is approved, the disbursed amount is usually credited directly to the borrower's account with the lending bank. This ensures that the funds are transferred securely and allows for easy tracking of the loan disbursement. Having an account with the lending bank is also crucial for the repayment of the education loan. Automatic loan repayment ensures timely and hassle-free payments. Regular loan installments can be debited directly from your bank account.
Additional Benefits:
Additionally, it also becomes easier to maintain and access important loan-related documents and records. Transaction history, loan statements, interest certificates, and other documents can be readily available through your bank account's online banking or mobile banking services. You can interact with the bank's customer service representatives, seek assistance with loan-related queries or concerns, and stay updated on any changes or updates regarding your loan, if it’s the same bank where you have an account.
What if you don’t have an account with the lending bank?
While having an account with the lending bank is generally necessary, some lending institutions may have specific requirements or alternative arrangements for borrowers who do not have an existing account. In case you do not have an account with the lending bank, you may need to open an account with them before or during the loan application process. Ensure that you fulfill the necessary documentation and account opening requirements as specified by the bank.
Conclusion:
Remember to maintain and monitor your bank account regularly, keeping track of loan-related transactions and ensuring sufficient funds are available for loan repayments. This will help you stay on top of your loan obligations and maintain a good repayment record.
