SBI Education Loan Disbursement Process

The disbursement process is the final step in securing an education loan abroad journey. The education loan disbursement process includes transferring funds from the lending institution to the borrower. For SBI, the disbursement process is quite simple. Once the bank has issued the disbursement letter which is valid for only 6 months, the borrower is required to initiate the disbursement process. Remember, adopting a laid-back attitude after getting your sanction letter can lead to panic and rush at the time of tuition fee payment. This blog will help you answer various questions that pop up in your mind like, “How are student loans disbursed?” or “How long does the student loan process take?” or “What is the process of application for disbursement of education loan”. 

Overview of SBI Education Loan for Abroad Studies

SBI Education Loan Process for Disbursement

After the SBI education loan sanction letter is received by the student. The next step is to start the SBI disbursement process. This section will answer your query of “How long does it take to get education loan once you have received your sanction letter?”. The disbursement process of SBI education loan includes the following steps

Document collection for disbursement:

The student submits documents that act as proof of expenses where all the expenses are stated clearly. The amount that the bank disburses largely depends on these documents & having the required documents beforehand avoids the hassles of reimbursement. 

Education loan disbursement letter:

Once the bank has evidence of expenses, it issues a study loan disbursement letter containing the final loan amount to be paid. The disbursement letter has to be signed by the student before disbursal.

Actual disbursement:

In the last step, SBI pays the tuition fee by transferring the money directly to the university’s account. If the student chose on-campus housing, then that is sent too. For all other expenses such as off-campus accommodation charges and living costs, the funds are transferred to the student’s bank account. 

The student also has the option to get the funds loaded in a prepaid forex card, provided that a clear breakdown is submitted upfront before disbursement.

Read more about: How to Track ICICI Bank Education Loan Status?

Documents Required for SBI Education Loan Disbursement Process

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  University’s demand letter with a clear fee structure.
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  In case the student has on-campus housing, documents including the accommodation fee breakup.
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  In case the student opt for an off-campus stay, documents include the rent agreement.
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  An estimate of average living costs including food, clothing, study material, gadgets, and so on.
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  A guesstimate of miscellaneous charges. Provide a clear breakdown encompassing health insurance, study aids, travel costs, and assorted incidentals.

Pre-Visa Disbursement of SBI Education Loan

Pre-visa disbursement refers to the release of funds from an education loan to a student before they obtain their student visa for studying abroad. It helps students manage initial expenses such as tuition fees, living costs, and travel arrangements before they embark on their educational journey. It provides financial support during the visa application process and ensures a smoother transition for students as they prepare to study abroad.

A common query during the student loan disbursement process is – ‘Will SBI disburse my education loan before a visa?’ The answer is yes if mandated. Countries like Canada, Australia, Germany, and New Zealand expect tuition fee deposits before the student visa is approved. The answer is yes if mandated. SBI offers pre-visa disbursement for the mentioned countries and disburses the tuition fee directly to the chosen university as per the requirement.

SBI Loan Disbursement Form

Key Factors of SBI Education Loan Process for Disbursement

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  The living and other expenses are loaded onto the student’s account (if a precise estimate is given during sanctioning) and tuition and additional fees are transferred directly to the college.
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  SBI offers a second top-up loan. This allows students to study a second course in their chosen country.

Step-by-Step Guide for Online and Offline Disbursement

Online Disbursement via SBI YONO:

SBI’s YONO (You Only Need One) platform is designed to help users take advantage of various services offered by the SBI. This platform simplifies the disbursement process for borrowers by allowing them to initiate and manage the loan disbursement process with ease. This section will provide you with a step-by-step guide on how you can apply for education loan disbursement once you have received an education loan sanction letter.

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  Login to SBI YONO: Start by first opening the YONO app or website and use your registered credentials to log in.

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  Look for the Loan Section: Select “Loans” from the dashboard and click on the “Education Loan” to view your loan details.

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  Start the Disbursement Request: Choose the “Disbursement Request” option and enter the required details, such as institution details, fee structure, and amount to be disbursed.

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  Upload Required Documents: Upload the required documents as requested by the bank such as proof of admission, sanction letter, etc.

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  Review and Submit: Before finally submitting an online request for education loan disbursement, verify all entered details carefully. Once verified, submit the request for bank processing.

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  Track the Status: Track your disbursement status under the loan dashboard. Here you will receive a confirmation once the funds are transferred to the institution or your account.

Offline Disbursement via Bank Branch:

Once you have received your education loan sanction letter, you can apply for disbursement of your education loan by visiting the branch. Below are the steps that you should follow to apply for the same as it will answer your question of “How is student loan money disbursed?”

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  Visit the nearest branch of SBI where your loan was approved along with all the required documents.
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  Fill out the “Loan Disbursement Request Form”. Make sure you have entered all the details correctly.
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  Submit all the required documents as requested by the bank.
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  Once your disbursement request has been approved by the bank officer, the bank will transfer the funds directly to the institution or as per the terms of the loans.

Common Challenges in the Disbursement Process

The process for SBI education loan disbursement is simple, students often encounter certain challenges that can cause potential delays.

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  Mistakes in the Loan Disbursement Request Form can result in potential delays or worse rejection.
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  Sometimes bank verification and approval can take longer than expected time leading to slower processing. Such scenarios usually take place during peak admission seasons.
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  There are times when a student might face technical glitches on the YONO platform which can cause delays in the process.
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  There can be a mismatch between loan terms and the requirements of the university of institution. 

Tips for a Smooth Disbursement Process

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  You should maintain a clear conversation with the bank so that u do not have to face any problems later on.
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  You should regularly check your loan account for updates regarding your loan.
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  You must keep a buffer period between the deadline of your fee and the disbursement request of your loan. As it will help you to avoid unnecessary delays in the submission of your fee. 

Role of Co-applicants and Their Responsibilities

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  It is required on the part of co-applicant that he should verify all the documents beforehand that needs to be submitted during the disbursement request.
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  The co-applicant must ensure that all the financial documents are up to date and not expired such as income proof or tax returns.
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  If bank requires anything from the end of the student, then co-applicant should respond to any queries or request from the bank to continue with the process.

After the loan disbursement, students often overlook crucial steps in the education loan journey. Repayment, availing of income tax benefits, and other important factors still need consideration which lenders usually skip. Education loans are long-term commitments, therefore, it is advisable for students to seek expert advice. Our expert education loan counselors assist students throughout the education loan journey and help them make informed decisions. The cost of education abroad is already high, hence we don’t want students to worry about our fees and that is why all services at GyanDhan are absolutely free of cost for students. Start your journey today by checking your loan eligibility.

Frequently Asked Questions