College is a major investment — and student loans often become the bridge between dreams and reality.
But did you know that you can’t use an education loan for just anything?
Here’s a clear breakdown of what student loans cover and what they don’t, so you can borrow smart with Vizzve Finance.
What You Can Use a Student Loan For
Lenders in India — including banks and NBFCs — offer student loans that explicitly cover:
1. Tuition Fees
✔️ Course fees for undergraduate, postgraduate, diploma, or vocational education (India or abroad)
2. Hostel or Accommodation Costs
✔️ University hostel or rented off-campus housing
3. Books, Stationery, and Equipment
✔️ Cost of study material, laptops, lab equipment
4. Travel Expenses (for Abroad Studies)
✔️ Airfare (economy class) and visa fees for international programs
5. Exam, Library, and Lab Fees
✔️ Any additional university fees mentioned in the official offer letter
6. Caution Deposit / Security Money
✔️ Refundable deposits paid to the university/college
What Student Loans Don’t Cover
1. Daily Living Expenses
🚫 Food delivery, shopping, lifestyle purchases, or outings are not covered
2. Phones & Entertainment
🚫 Mobile phones, streaming services, or gaming subscriptions
3. Personal Travel or Vacations
🚫 Non-academic trips or leisure travel are not loan-eligible
4. Non-Academic Courses
🚫 Short-term online courses, hobby classes, or coaching not affiliated with recognized institutions
5. Loan Repayment of Other Debts
🚫 Using a student loan to pay off credit card bills or personal loans is prohibited
Vizzve Finance Insight
At Vizzve, we help you:
Understand what your loan can legally cover
Plan your semester-wise loan disbursement
Avoid misuse that could lead to loan cancellation or default
We even guide students on budgeting to manage covered vs. uncovered costs.
Tips Before You Apply
✅ Always ask for the loan utilization policy from your lender
✅ Keep bills & invoices for reimbursement-based disbursals
✅ Use a dedicated bank account for transparency
✅ Avoid diverting loan funds to non-essential expenses
FAQs
Q1: Can I use my student loan for buying a laptop?
Yes, if it's needed for your course and mentioned in the expense list.
Q2: What happens if I misuse the student loan?
The lender can stop disbursement or recall the loan with penalties.
Q3: Does the RBI regulate what loans can be used for?
Yes, all education loans must follow RBI and lender-specific norms.
Published on : 22nd July
Published by : SMITA
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