Should I self-finance my education or take an education loan?

An education loan provides tax benefits on the interest paid under Section 80E of the Income Tax Act. It also allows you to invest your savings instead of spending a sizeable chunk on your education. On the other hand, with an education loan, you will end up paying more than the sum you borrowed. Plus, EMIs can put stress on your cash flows. Consider these aspects before arriving at a decision.

In whose favour is the loan disbursed, the applicant or the university?

Tuition and hostel fees are usually disbursed directly to the university. Other components of the loan, like lab equipment, travel expenses can be claimed by the applicant.

Is it necessary to have an account with the bank to avail a loan from them?

No, this is no longer a mandatory requirement. However, having an account with the bank makes the sanctioning process easier since the bank is familiar with your financial history, assets and past transactions.