Education Loan

SBI Education Loan Disbursement Process

SBI Education Loan Disbursement Process

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Read about the SBI education loan disbursement process of SBI. Also, learn about the documents required for the disbursement process and pre-visa disbursement at SBI.

Ananya Ghai
Updated on:  16 Feb 2024  | Reviewed By: 
| 61.1K | 5  min read

The disbursement process is the final step in securing an abroad education loan journey. The education loan disbursement process includes transfering 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.


Overview of SBI education loan for abroad studies

Rate of interest

11.15% (Men)

10.65% (Women)

Margin money

10% of the total expenses

Moratorium period

Course duration + 6 months

Repayment tenure

15 years

Processing time

20 - 25 working days after submission of collateral.

Processing fees

Rs. 10,000 + GST


Check Your Education Loan Eligibility


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. The disbursement process of SBI education loan includes the following steps:

  • list items Document collection for disbursement

The student submit 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. 

  • list items 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.

  • list items 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.


Documents required for SBI education loan disbursement process 

  • list items University’s demand letter with clear fee structure.  
  • list items In case the student has on-campus housing, documents including the accommodation fee breakup.  
  • list items In case the student opts for an off-campus stay, documents include the rent agreement.  
  • list items An estimate of average living costs including food, clothing, study material, gadgets, and so on.  
  • list items 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.


Key factors of SBI education loan process for disbursement 

  • list items 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. 
  • list items SBI offers a second top-up loan. This allows students to study a second course in their chosen country. 


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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 counsellors assist students throughout the education loan journey and help them make an informed decision. 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.

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Frequently asked questions

What are the expenses that SBI education loans cover?

An SBI education loan covers tuition fees, travel, accommodation, and any other study-related expenses.

What is loan margin money?

When an applicant applies for an education loan, their respective lender approves a certain percentage of the total cost of education as a loan. The outstanding percentage which is to be paid by the applicant and is known as loan margin money.

What happens after the SBI education loan sanction letter is received?

After the education loan has been sanctioned the applicant and co-applicant have to visit the bank and sign the sanction letter. The student can thereafter request disbursals.

How to check SBI education loan status?

To check SBI education loan status download or visit the SBI loan app. Enter your reference number and registered mobile number and the current status the loan application will display.

How is education loan disbursed?

Once the student has submitted disbursement related documents, the bank will issue the disbursement letter and later disburse the amount. The bank will dibusre tuition fees directly in the university’s account and the rest of the amount will be disbursed in the borrowers account.

Is SBI good for education loan?

Yes, SBI is one of the most preferred and reliable options amongst students when considering education loans. SBI offers one of the lowest interest rates against education loans.

Check Your Education Loan Eligibility


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