SBI Education Loan Disbursement Process 

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State Bank of India (SBI) is the largest public sector bank in India. It is one of the most popular choices among students when it comes to education loans for overseas studies. The SBI Education loan disbursement process is completely online. If the loan is sanctioned and the applicant has submitted all the relevant documents post-sanction, the loan disbursement may get processed within 24-48 hours subject to terms and conditions. The loan amount covers various expenses like tuition, accommodation, academic tours, and even things like laptops or two-wheelers needed for studies. Read on to understand the SBI education loan disbursement process. 

Also Read: Planning for study abroad loan from SB? Read this and know the differences between SBI Student Loan Scheme and SBI Global Ed-vantage Scheme

Understanding the SBI Education Loan

SBI provides education loans for students aspiring to study abroad, covering tuition, accommodation, travel, and other related costs. The education loan is provided by SBI under the SBI Global Ed-vantage Scheme for study abroad loans. The SBI Education loan disbursement process is the final step of getting the loan. Let’s understand all the processes involved in the loan disbursement. 

Steps Involved in SBI Education Loan Disbursement

The major steps involved in the SBI education loan disbursement process are submitting the application, bank verification, loan sanction etc. After all these steps, the net loan amount gets disbursed to the university account. Check all the steps in detail below:

Application and Documentation

To get an SBI education loan, you need to apply online and submit documents like admission proof, cost estimates, academic records, and ID and address proofs. The other important details required while applying for a loan are collateral documents, income proof, KYC documents etc. Always keep the documents handy and self-attested so that you don’t have to face any issues that can cause delays in loans.

Loan Sanction

After applying, the bank will check if you’re eligible and how much loan you need based on your academic performance and the chosen course. If you’re taking a secured loan, they also check collateral details. The final loan amount is decided considering the monthly income of the co-applicant or parents, the value of the collateral and the course and university where you are taking the admission. 

Also Read: Check out this blog and know Why Education Loan Insurance is Essential for Students

Loan Approval

After the verification of KYC, collateral, income etc the bank will provide you with a sanction letter. You can submit the same letter to the university as evidence of financial support. The sanction letter will include the eligible loan amount, repayment period, interest rate and other major terms and conditions of the loan. This letter can be given to the university as proof of financial support.

SBI Education Loan Disbursement 

If you are ready to proceed with the amount offered by the bank, you need to submit further documents like a visa approval letter, university acceptance letter, copy of air tickets etc. After verifying all these details, the bank will disburse the amount directly to the university to cover tuition fees, accommodation fees and other listed expenses. For any other category, the bank may transfer the amount to the personal savings account of the applicant. SBI Education Loan processing time is usually less as compared to other public sector banks.


How long does it take to get a SBI education loan?

All the applications for SBI Education Loans get processed through the Vidya Lakshmi portal. When you apply for the loan, the bank will communicate with you for relevant information. After you submit the application with the documents, your loan will be processed in 7-10 days subject to terms and conditions.

What is the interest rate for an education loan from SBI?

SBI education loan interest rates range from 9% to 13%, depending on factors like co-applicant income and loan tenure.

Can I get the education loan amount in my personal bank account?

Usually, the money goes directly to the university, but if you have other expenses which the bank is covering in the loan then that amount might be transferred to your personal savings account.

What is the maximum amount of education loan I can get from the State Bank of India?

The maximum amount that can be sanctioned by SBI is INR 1.5 crore. However, this totally depends upon the net monthly income of the co-applicant, value of collateral, university and course etc. 

How does SBI disburse the education loan to study abroad?

After documentation, the bank will transfer the loan amount for the tuition fee and accommodation fee directly to the university.

This was all about the SBI Education loan disbursement process. Read all the loan-related terms and conditions properly before applying for an education loan from SBI.

To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. 

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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