Saraswat Bank Education Loan Disbursement Process

You got everything ready: the admission letter, documents, and the visa butt, now you are waiting for the money to get disbursed. The disbursal process is easy and streamlined, but the wait sometimes can be tiring. 

To get on that dream flight, you need to look for the options that are within your reach. Any delays in the money disbursement can affect your orientation week. It even hampers the arrangement of other things, such as blocked accounts and GIC transfers. To avoid this chaos, we have built an entire Saraswat Bank education loan disbursement process and ensure that funds are released on time without any hassle. 

Overview of Saraswat Udaan Education Loan

Saraswat Udaan Scheme is a loan product that provides education to students to pursue higher education. It provides loans to students aiming for undergraduate, postgraduate, doctoral, or diploma programs in India and abroad. What does it include?

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  Loan Amount: Up to INR 1.5 Crore for premier universities abroad.

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  Coverage: Tuition fee, travel, exam fees, library/lab expenses, living costs, insurance premium, and even study tours or project work.

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  Tenure: Up to 15 years repayment period after moratorium.

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  Moratorium: Course duration plus 12-month grace period.

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  Margin Money: 10 -15% (waived for some countries/institutions).

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  Security: Collateral-free loans up to INR 5 Lakhs; above this, require collateral documents.

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  Destination: USA, UK, Canada, Germany, Australia, Ireland, New Zealand, and more, except Russia and Ukraine.

Steps Before the Disbursement

The loan process starts when you start exploring the loan option. Thus, there are some steps that should be completed before you apply for the disbursement. The general overview of those steps is provided below:

Loan Sanction Confirmation:

To get the loan sanction letter, you need to apply for the loan through the online portal or by visiting the branch. Ensure that you have read all the terms and conditions in the sanction letter. 

Fee Schedule & Bank Details:

After reading and comprehending the loan terms, now you need to provide the fee structure and the bank account details of the university, including:

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  Account number
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  SWIFT code (for foreign remittance)
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  Bank name and address
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  ABA/Routing number (for U.S.)

Account Activation:

When you get a loan from a bank, they provide the loan account. So, open a Saraswat Bank savings account in your name (and co-applicant’s, if applicable). This will be used to route disbursed funds meant for you (like living expenses, travel costs, etc.).

Documents Required During the Disbursement

Every applicant submits the documents during the loan application; however, Saraswat Bank requests additional documents. This is used to indicate that you have the other funds that aren't included in the loan amount. Bank officials check the original to validate the documents.

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  Duly filled and signed Disbursement Request Form.
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  Copy of admission letter and I-20 (for the US) or equivalent.
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  The fee structure or semester invoice from the university.
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  University bank details (on official letterhead or invoice).
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  Copy of student visa (for post-visa disbursement).
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  Travel tickets or itinerary (if funds are being sought for travel).
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  Insurance premium invoice (if applicable).
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  Previous disbursement statement (for 2nd or later disbursements).
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  Pre-Visa Letter Request (for Pre-Visa Disbursement).

What is the Disbursement Form?

The Saraswat Bank Disbursement Form acts as the official request for funds and must be filled out carefully. Mistakes in this form can result in processing delays. You will get the disbursement form from the branch or ask over email.

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  Borrower’s and co-borrower’s personal and contact details.
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  Loan Account Number (from sanction letter).
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  Purpose of disbursement (tuition, travel, living expenses).
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  Amount requested (in INR or foreign currency equivalent).
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  Beneficiary details (name, account number, bank info).
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  Payment mode (SWIFT/RTGS/DD).
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  Signatures of borrower and co-applicant.
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  Checklist of enclosed documents.

How does the Disbursement Process Work?

Once your documents and disbursement form are ready, the disbursement process starts:

Submission:

You submit the disbursement form along with required documents at your home branch (or via email, depending on the branch policy).

Verification:

Bank officials verify your request against your sanctioned loan terms and fee schedule.

Processing:

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  For foreign remittance, a SWIFT transfer is initiated to the university’s account.
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  For domestic payment, an NEFT/RTGS transfer or a demand draft is issued.

Disbursement Confirmation:

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  You receive a confirmation email or message.
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  For SWIFT transfers, the UTR number/SWIFT copy is shared for university tracking.

Note: This whole process takes around 5-7 working days, and some delays might occur due to the time zone.

How to Get Pre-Visa Disbursement?

Sometimes a university asks for the admission fee even before you have received the visa approval, or you need to show the immediate funds (like for Australia) in your bank account. Therefore, in those cases, you can take advantage of the pre-visa disbursement. 

Conditions for Pre-Visa Disbursement:

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  You have to justify your reason to ask for pre-visa fund proof.
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  A Pre-Visa Letter Request must be submitted to the bank.

What Can You Request?

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  Partial fee disbursement directly to the university.
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  Funds for GIC account (Canada) or Blocked Account (Germany).
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  Pre-visa disbursement letter for embassy use.

Factors Related to the Disbursement

During the disbursement process, many factors are involved that also affect the disbursement speed. 

Common Challenges During Disbursement

The disbursement process is swift; however, it also gets complicated in case students forget or commit a mistake during the process. 

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  Incorrect SWIFT or bank details leading to returned payments.
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  Missing signature or mismatched info in disbursement forms.
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  Unavailability of co-borrower for signature.
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  Delays in visa approval, blocking fund release.
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  Last-minute submissions close to the university deadline.
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  Technical errors in internet banking or RTGS/SWIFT interface.

Tips to Avoid Delays in the Disbursement 

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  Start with the disbursement process around 10–15 days before the payment deadline.
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  Always double-check account and university bank details.
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  Keep digital and hard copies of all documents.
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  Inform your relationship manager in case of urgent need.
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  Avoid making changes to the university’s invoice or fee breakdown once submitted.

Conclusion

Saraswat Bank's education loan disbursement process is seamless, but, lack of communication between the applicant and the lender can be a concern. To avoid such an issue, you can just use the GyanDhan portal. Check your Eligibility, and our GyanDhan loan counselors process everything for you. In case you need pre-visa distribution, we can help you with that, too. And yes, we have 20+ lenders to compare with, helping you get the best deal based on the resources and requirements. 

Frequently Asked Questions