SBI Education Loan - Branch used my entire first-year fee instead of remaining amount, now my final year loan is almost exhausted. Need advice from SBI employees.

Hi everyone,

I'm a final-year B.Tech student from NSUT Delhi and I'm hoping someone familiar with SBI education loans can guide me.

I took an SBI education loan of ₹7.5 lakh in 2023.

My course fees are:

• 1st year: ₹2.29 lakh
• 2nd year: ₹2.40 lakh
• 3rd year: ₹2.50 lakh
• 4th year: ₹2.70 lakh

Before my loan was disbursed, my family had already paid ₹95,000 towards my first-year fees from our own savings.

When I submitted my documents to SBI, I specifically requested that the bank disburse only the remaining ₹1.34 lakh, because ₹95,000 had already been paid. I was told reimbursement of the ₹95,000 was not possible, so I accepted that.

However, instead of disbursing only ₹1.34 lakh, the branch disbursed the entire ₹2.29 lakh to the college and then asked the college to refund ₹95,000 back to the loan account, instead of reimbursing me.

The biggest issue is that nobody explained this to me.

For the last three years, my SBI YONO loan page looked completely normal, so I genuinely believed everything was fine. I never checked the "Manage Loan" section to see the remaining disbursement amount because the branch had given me a written calculation showing that by my final year I would need to arrange only about ₹1.44 lakh in cash, and I trusted that.

Now, just before my final-year fee payment, I discovered that:

• Loan sanctioned: ₹7.5 lakh
• Loan disbursed: ~₹7.19 lakh
• Only about ₹30,000 remains available for disbursement.

The branch is now telling me that I may have to arrange around ₹2.40 lakh instead of the ₹1.44 lakh I had been preparing for.

My family is financially very weak. My father is a private driver, and arranging ₹1.44 lakh itself was already extremely difficult. Arranging ₹2.40 lakh is simply impossible.

When I met the branch manager, he admitted that this may have happened because of how the loan was processed by the previous manager/staff. They have asked me to come again because they are checking with their technical team to see if anything can be corrected.

My questions are:

1. Was this the correct way to process the loan?
2. If I had already paid ₹95,000, should the bank have disbursed only the remaining amount instead of the full first-year fee?
3. Is there any way to technically correct this after three years?
4. If the branch cannot fix it, whom should I escalate this matter to within SBI?

I'm not trying to blame anyone. I'm genuinely looking for guidance because this issue could affect whether I can complete my final year.

Any advice from SBI employees or people familiar with education loans would be greatly appreciated.

Thank you.