What is a sanction letter for studying abroad, and how Indian students use it for visas
Learn what a sanction letter is, why embassies ask for it, and how Indian students use education loan sanction letters for study abroad visas.
Planning to study abroad comes with a long checklist: offer letter, visa appointment, proof of funds. Somewhere in the middle sits a document many Indian students encounter for the first time, the education loan sanction letter.
If you’re applying for an international student visa, this letter often plays a key role in explaining how you’ll fund your education. Here’s what a sanction letter is, why visa officers ask for it, and how Indian students typically use it during the visa process.
What is a sanction letter for education loans?
A sanction letter is an official document issued by a lender confirming that your education loan has been approved, subject to final conditions.
In simple terms, it tells visa authorities and universities:
How much funding you’ve been approved for*
Who the lender is*
What the loan is intended for, usually tuition and living costs*
That the funds are available for your studies once conditions are met*
For Indian students, a sanction letter is commonly requested during student visa applications because it helps demonstrate structured and credible financial planning.
Why do embassies ask for a sanction letter?
When you apply for a student visa, one of the key questions the visa officer needs answered is straightforward:
Can this student realistically afford to study and live abroad for the duration of the course?
A sanction letter helps answer that by showing that a recognised financial institution has reviewed your profile and approved funding for your education.*
Depending on the country, this document may be:
Mandatory, or
Strongly recommended as supporting evidence
Either way, it helps make your financial story clearer and more consistent.
What information does a sanction letter usually include?
While formats vary by lender, most sanction letters include:
Student name and application reference
Approved loan amount*
Purpose of the loan, typically education abroad*
Name of the university and programme
Validity period of the sanction
Key conditions, such as school confirmation or visa approval
For visa purposes, officers focus less on loan mechanics and more on clarity and credibility.
How Indian students use a sanction letter for visas
Here’s how the sanction letter typically fits into the visa journey.
Step one: securing a conditional or final loan approval
Many students apply for an education loan after receiving a university offer. Once approved, the lender issues a sanction letter that can be used immediately for visa documentation.*
This is especially helpful when visa timelines are tight and funds do not yet need to be released.
Step two: submitting it as proof of funds
During your visa application or interview, the sanction letter is submitted alongside other financial documents, such as:
Personal or family savings
Scholarship letters, if applicable*
Affidavits of support
Together, these documents show that your full cost of attendance is covered.*
Step three: explaining your funding plan clearly
If asked during a visa interview, the sanction letter allows you to clearly explain:
How much of your education is loan-funded*
Who your lender is*
When funds will be paid, often directly to the university*
Clear, simple answers matter, and the sanction letter helps keep them consistent.
Does a sanction letter mean the money is already paid?
No. This is a common point of confusion.
A sanction letter confirms approval, not immediate payment. For most international education loans:
Funds are released only after certain conditions are met*
This usually includes visa approval and school confirmation*
When approved, we send the funds to your school, not to your personal account*
For visa officers, approval is what matters at this stage, not disbursement.
Using a sanction letter across different countries
While visa rules vary, sanction letters are commonly accepted for student visas in countries such as the US, UK, Canada, Australia, and parts of Europe.
Some embassies may ask for additional clarity, for example:
How long the funds will cover*
Whether living costs are included*
When repayments begin*
Being prepared to explain these points, using your sanction letter as supporting evidence, helps reduce uncertainty.
How Prodigy Finance fits into the picture
Prodigy Finance provides education loans for international postgraduate students, including those from India studying abroad.
Key points students often highlight during visa applications:
Loans available to students from 120+ countries*
Eligibility assessed using future earning potential, not collateral*
USD $100 in-school payments included as part of the standard product*
Full monthly repayments begin 6 months after your course is complete*
When approved, we send the funds to your university*
Common questions students ask about sanction letters
How long is a sanction letter valid?
Most sanction letters have a validity window, often a few months. This is usually enough to cover the visa process, but it’s worth checking the expiry date.
Can I use the same sanction letter for multiple embassies?
Sanction letters are typically issued for a specific programme and university. If either changes, you may need an updated letter.
What if my visa interview is delayed?
If your visa appointment moves beyond the validity of your sanction letter, contact your lender early. Extensions or re-issued letters are often possible.*
Final thoughts
A sanction letter is more than just paperwork. For Indian students studying abroad, it plays a key role in showing that education plans are realistic, funded, and well thought through.
Understanding how it works, and how visa officers view it, can make the application process feel more manageable and far less stressful.
If you’re planning your funding and want to understand your options, you can check whether a Prodigy Finance loan could support your studies abroad.*
Check your loan eligibility with Prodigy Finance*
