All you need to know about Education Loan Transfer in India

 

At the time of availing a loan for higher education abroad, it is of utmost importance to do a thorough research about the various terms and conditions of the financial institution. Otherwise, a lot of times students have to opt for education loan transfer if they are not satisfied with their existing financial lender.

What is an Education Loan Transfer?

An education loan transfer is the process of transferring the education loan application to another bank. For an instance, let us consider that you have availed an overseas education loan from a Non-Banking Financial Corporation due to their shorter processing time but after a time span of one or two years, you are not satisfied with the education loan repayment policy of the NBFC and hence wish to go for a student education loan refinance from a public bank. In such case, you can apply for an overseas education loan transfer from the NBFC to a nationalized. Follow the steps below for an education loan transfer:

4-step guide to an education loan transfer:

Step 1: You are required to inform the old financial lender that you are willing for the loan transfer and they will provide you a statement of the pending education loan amount to be paid.

Step 2: The statement is required to submit to the new financial lender that is providing the student loan refinance.

Step 3: After receiving the bank statement, the new financial lender begins the education loan process.

Step 4: Once the education loan is sanctioned by the new bank, it issues a cheque that allows you to clear all your pending dues with the former lender.

What is the eligibility criteria for an education loan transfer?

A loan applicant is eligible to choose the option of education loan transfer only when there are no more disbursements to be taken from the current lender institution as a loan amount. It means that whatever the overseas education loan amount was required to be disbursed from the previous financial institution is already disbursed and the applicant is not allowed to borrow any more amount on the previous loan and the repayment should have started towards the old loan in the form of EMIs.

Things to keep in mind for an education loan transfer:

While applying for an education loan transfer, an applicant is required to take the following points into consideration:

·        At the time of transferring the secured education loans, if the student plans of transferring the present education loan from one bank to another, the new financial lender can take over the existing collateral.

·        If an applicant has an existing unsecured education loan with the current lender and the applicant wishes to transfer the same to the public bank. He/she will be required to place a valuable collateral with the public bank.

·        The public bank to which an applicant is willing to transfer the education loan grants 100% of the loan amount on the collateral value. Hence, there is no margin value.

The rest of the conditions are like those of a regular foreign education loan. If you are willing to apply for an education loan transfer and are looking for an assistance for overseas education loan process, feel free to get in touch with us at ELAN Loans. 

 

Comments

Post a Comment

Popular posts from this blog

Different ways Students can Carry Money Abroad

Image
Students going abroad need money for their travel, accommodation, food, educational expenses and so on throughout their educational stay. In this case, international debit/ credit cards are not advisable in the first place. The new smart ways to complete foreign transactions are forex cards and wire transfers. This can be useful for anybody travelling abroad for any reason, travel, work, leisure or study. Spend smart with Forex Cards: Ease of Global Use: Forex Cards are easy to use as they are prepaid cards. This enables the user to swipe the card at airports, food counters, hotels and wherever required instead of using cash currencies or international credit/ debit cards. Safe for Transactions: Forex Cards come with a chip and PIN, that make it secure for use. Forex Cards are helpful for students specially as it is safer to use and carry. Students staying in hostel or dormitories are often under the threat of stealth. Travelling to new places is also a risk for
Read more

An overview of Overseas Education Loan Process

Image
Aiming for Higher Studies Overseas? Do you require an Overseas Education Loan? Then this article will surely help you. Over the years, education loans have become the most reliable source of funding higher education overseas. There has been an exponential rise in the number of Indian students opting for studies abroad in the past two decades despite its heavy cost. Thanks to the availability of education loans for abroad studies which ease out the burden. There are numerous advantages of taking overseas Education Loans like, •    100% Funding •    Pre-admission Loan •    Income Tax Benefits And many more…… The overseas education loan requirements are: •    Credit Score •    Documents Checklist based on the University •    Students Document Checklist •    Parent’s/Sponsor’s Documents Checklist •    Collateral Security Documents Checklist There are innumerable banks and other financial institutions in the market offering education loan. Many parents are not aware about the country-s
Read more

Financial Aid for Higher Education Overseas

Image
Many talented students hold back from pursuing higher education in foreign countries because of an insufficient finance. The predominant reason for this is lack of awareness with respect to the funding options for overseas education that are at disposal. There are several Scholarship schemes funded and sanctioned by the Government of India for studying abroad. Also, students can take education loan from the banks. In this article, we’ll try to explore what are the financial aids provided to the Indian students for studying abroad. Scholarships and Fellowships Financial assistance is given to the meritorious students seeking admission in reputed foreign universities and education institutions. The Ministry of Human Resource, (MHRD) India facilitates fellowships awarded by foreign countries like China, South Korea, Israel, Japan, Italy, Mexico, and Sri Lanka to Indian students under Educational Exchange Programmes. A student applying for PhD, master’s or bachelor’s degr
Read more