Have you taken education loan without giving much importance of rate of interest and now you are repenting? Well do not worry; you can transfer your balance loan amount to bank or financial institution which offers low rate of interest and flexible repayment options.
Dyuti has just started her career by landing job in multi-national bank. After getting her first salary, she was preparing herself to buy gifts for her loved ones. More than being excited for gifting things from her first salary, she was really worried about repaying her outstanding education loan.She has taken a loan of Rs. 20 lac for her higher education from a premier institution in India and almost 75 % her salary will go towards monthly EMI.
With the fees of most professional courses in India ranging anywhere between Rs 6 lac and Rs 40 lac, education loans are simply unavoidable today. But, she made a mistake of taking the loan from the first bank she approached without comparing rate of interest with other banks and financial institution. No, she is repenting it.
Have you taken education loan without giving much importance of rate of interest and now you are repenting? Well do not worry; you can transfer your balance loan amount to bank or financial institution which offers low rate of interest and flexible repayment options.
The process of balance transfer
Any person who has taken education loan and is pursuing studies in India or abroad or has completed the studies can apply for education loan balance transfer.
The borrower of the education loan needs to submit the request letter for balance transfer to the bank or financial institution. After getting a consent letter or NOC and a statement mentioning the outstanding amount, you can apply for education loan balance transfer to the bank or financial institution of your choice. You need to submit the received consent letter or NOC and a statement mentioning the outstanding amount to the bank or financial institution to which you are transferring the balance. The bank or financial institution will sanction the loan amount to bank or financial from where education loan was taken previously for an account closure. The bank or financial institution, you are shifting to will offer you a loan based on the current education loan rates they are offering to their education loan applicants. Remember, you need to pay only for the applicable documentation charges.
Some of the features of balance transfer are:
It will be wise to transfer your education loan than to keep worrying bout its repayment and in the end become a loan defaulter.
Credit Guarantee Fund Scheme for Educational Loans
With the increase in number of education loan defaulters in India, Banks and education loan agencies are becoming strict with their rules and regulations with regard to various education loan schemes to study in India or abroad.
What Parents And Students Need To Know When Comparing Study loans
It is important to plan early for your child's education. Saving today will save you the trouble tomorrow. We plan to enlighten you on things to ensure that you're doing it right. Pass on independence to your child not the debts.
Why Education Loan is important for Higher Studies in India?
India is a major hub for education, both mainstream as well as new age careers. The career opportunities available today are many.
