You can obtain the loan quantity that you genuinely require.
You will require about Rs. 200,000 for course fees, Rs. 300,000 for lodging and food for two years, Rs. 75,000 for a laptop, and an additional Rs. 125,000 for other costs. You may be approved for a 700,000 rupee study/education loan, but you are to only take out what is necessary. For the portion of the loan that was not used, interest is not due.
The bank will send the money for course fees and other college expenses/fees online to the college, while the money for personal needs will be credited to your savings account at that specific bank.