Disbursement Process of SBI Education Loan | GyanDhan

Hi @Punit_Chawda,

Please get in touch with us. We can help solve this issue. You can request a callback on our website.

i took loan through vidyalakshmi portal in sbi. everything was going smoothly but due to covid i failed in one subject, although i have secured A’s in other subjects, branch manager is denying to disburse the remaining amount of loan, is it okay?
please reply asap. @vishakha.bhagia

Hi @vinz_Maheshwari,

There are two scenarios -

Scenario A - The Education loan is not yet active and there is no disbursement.
In this case, if the student has failed any subject and there is a backlog pending, the SBI will give you a conditional sanction stating that the loan amount will be disbursed only after the student shares the mark sheet with all clear status. It means that you will have to clear your backlog to get the loan amount disbursed.

Scenario B - The Education loan is active and the first disbursement has taken place.
In this case, if the student gets a backlog during the course, they have to give an explanation along with the demand letter for further disbursement. The bank will also ask for the mark sheet of the previous semester.

I hope this answers your doubt. If not, then please elaborate on your education loan a bit, so that I can provide an answer specific to your situation.

1 Like

so in second scenario, they will have disburse loan right?

Yes, after you give an explanation along with the previous semester’s mark sheet.

so bank will have to disburse loan in case of second scenario. right?

@vinzmaheshwari333 @vinz_Maheshwari
Yes, once you have submitted a written explanation along with the mark sheet of your previous semester, the bank will disburse the amount.

Hi,This is Sairaj.
SBI branch from which i got sanctioned the loan is not giving me the disbursement for the accommodation they are asking for statement regarding it. I am totally unable to understand as currently I am in 5th year and they never asked for statements regarding accommodation and they are not telling what actually the problem is.
What should i do as only one year is left to be graduated.

The bank asks for fee structure and accommodation fee break-up for the disbursement of the loan amount. Generally, this is done prior to the first disbursement but since they haven’t, you will have to submit the required documents for further disbursement.

An excerpt from the blog -

Document Collection for Disbursement - The student arranges documents that act as proof of expenses. The amount the bank disburses hinges upon these documents. Therefore, it is critical to gather all the papers beforehand for incidentals that the bank has to cover. It avoids the hassles of reimbursement. List of documents an applicant will need to submit for the student loan disbursal -

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

If you have taken the loan via GyanDhan, then you can let your assigned ELC know about the issue, and they will get it resolved.
Hope this helps!

Hey there! My college fee is 4.5 lakh. I’ve already paid 50k at the time of admission before my loan was approved. I applied for a loan of 4 lakh which is sanctioned and they have distributed first installment in my college’s account but for the second installment they are asking for margin money. I’m really confused about this. Please help!!

Hi @Mannat_Pandey,

I’m assuming you have taken the loan from SBI.
Please go through your loan agreement to check if the lender has mentioned margin money. If there is a section on margin money, then there is no other option than to make the payment. But if there is no mention of the margin money, then you can go to the Bank Manager to get this sorted.
Ideally, there is no margin money on loans up to INR 4 lakhs. But if it is mentioned in your loan agreement, then you have to do it.
Hope this helps!

I’m actually not in my state where I’ve taken the loan from. I’m in pune right now now and my exam is day after tomorrow. It is just not possible to go there and come back in such a short time. Would you please help me getting this information online?

How can I access my loan agreement online?


Banks usually send the agreement over through email. Check the inbox of the registered email address. Or contact the bank to send you one on mail.
Hope this helps.

Yeah. Thankyou so much!

Hello Sir/Ma’am,

I am planning to purse my masters in UK where for visa purpose i have to pay the immigration health surchage fee of 940 GBP (approx. 1Lakh) declared by the UK government. It is mandatory to pay and it covers my health expenses during my course period only. Can it be covered with Global edvantage loan scheme?

Hi @Anusha_Victoria_Veig

Yes, health insurance is covered in the loan amount. However. due to the COVID-19 pandemic, the bank is providing health insurance on a country-wise basis.

The best way to know if you qualify for this amount is to check your loan eligibility on our website. GyanDhan > Loans > Check loan eligibility. Our executive will get in touch with you in 6 working hours and discuss your loan needs.
I hope this answer helps you. For any further queries, do post on this thread. All the best!

If I have paid my first semester fees and then want to cancel my education loan, in how many days i have to pay the dues amount? in sbi

Hi @Ankit_Karmakar

I have forwarded your query to our Education Laon Counselor. They will confirm the answer from an SBI bank official, which will be communicated to you by Monday (26th July).

Thank you for your patience.

Hi @Ankit_Karmakar

After confirming from an SBI bank official, we got the following response -

If the student wants to cancel the education loan after just one semester, they will have to pay the amount due in one go during the loan closure.

So, when you go to the bank to request loan cancellation, you will have to pay the due amount to complete the process.

Hope this helps you. For any further questions, do post on the thread and I will get back to you. All the best!