Quick Facts | ||
---|---|---|
Interest Rate | Processing Fees | Loan Margin |
Starts @ 11.25% | 0 (Up to 20 Lakhs) INR 750 per lakh (More than 20 Lakhs) |
15% |
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.
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Table of Content
Loan amount |
INR 7.5 Lakh - INR 1.5 Cr |
Rate of interest |
11.15% (Men) 10.65% (Women) |
10% of the total expenses |
|
Course duration + 6 months |
|
Repayment tenure |
15 years |
Processing time |
20 - 25 working days after submission of collateral. |
Processing fees |
Rs. 10,000 + GST |
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:
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.
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.
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.
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.
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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An SBI education loan covers tuition fees, travel, accommodation, and any other study-related expenses.
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.
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.
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.
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.
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.
About Author
Ananya Ghai
A post-graduate with over three years of expertise in the education abroad industry. Ananya has a knack for writing blogs. Previously, she has worked as an IELTS trainer and SOP writer. A passionate writer and a literature geek, describe her perfectly.