The airline expects the two banks to disburse the amount by next week, a source close to the development said.
Earlier this month, the disinvestment-bound Air India had floated tenders for availing government guarantee backed INR short-term loans totalling up to Rs 3,250 crore in the first phase to meet its urgent working capital.
Banks were asked to submit their financial bids by September 19, indicating the amount of government-guaranteed short-term loans they were willing to offer.
He said the funding will be used for repayment of dues to the airport operators, oil companies and other vendors.
Under a turnaround plan approved by the previous UPA government, Air India is to receive up to Rs 30,231 crore from the government subject to meeting certain performance thresholds. The 10-year bailout package began from 2012.
On June 28, the Cabinet Committee on Economic Affairs (CCEA) had given in-principle approval for strategic disinvestment of Air India and five of its subsidiaries.
As part of efforts to revive the loss-making airline, a ministerial panel under Finance Minister Arun Jaitley is working on the modalities for strategic disinvestment of Air India and its five subsidiaries.
Last week, Jaitley had said that the process for Air India disinvestment is moving "quite well".
The government has already invited applications for engaging up to two advisers, a legal adviser and asset valuer for the strategic disinvestment of Air India and its subsidiaries/ joint venture.