Education Loan Extension in India

✓ Moratorium Period Extension

✓ Sanction Letter Validity Extension

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Students who go abroad for their education, go with high hopes and enthusiasm. But the future is uncertain, things may not always go as planned. 

Likewise in 2021 when the pandemic had gripped the world, countries had enforced lockdowns, many people had lost their jobs, and students studying abroad were stranded without jobs. 

Fortunately, things are getting better now. It was at that time that many students realize the importance of knowing how to extend their moratorium period, repayment period, and sanction letter validity, as extending their repayment period had helped them avoid defaulting on payments.

So in this rather short article, we'll discuss how you can extend your moratorium period, repayment period, etc. One important thing you need to know is that you can extend your education loan terms only in Government banks. 

At WMS, we're not just a pretty face, we're also your go-to support provider for all your education funding needs

Education Loan Moratorium Extension

So a moratorium period is a gap in your repayment tenure of the loan where you are not obliged to pay anything to the bank. As per the terms of the agreement of the education loan, the repayment will commence after one year of completion of your course or after six months from the date of getting employment. 

Moratorium period offered by different lenders-


Moratorium period

Government banks

Course duration + 6 months

Private banks

Course duration + 6 months


Course duration + 12 months

As mentioned, you can only extend your moratorium period in Government banks (from 6 months to 12 months) and not private banks and NBFCs. 

Now, to extend your moratorium, you have to write a letter to the bank stating that you want to extend your moratorium period. You should write this request letter before your repayments start meaning within 5 months post-course (Avoid requesting in the last month).

Education Loan Repayment Extension

If you are facing a financially distressing time, you can negotiate and modify the terms of your loan to avoid defaulting on payments. This process is known as loan restructuring. Loan restructuring may be subject to additional charges, and though it may lower your EMIs, you will have to pay more interest due to the increased tenure.

It is a better way to extend your repayment tenure. However, you must note that your lender may consider your request based on many factors such as your repayment capacity, past payment history, nature of the loan taken, etc. Usually, such solutions are only provided to certain types of term loan borrowers. If you want to extend your education loan repayment you have to do the following.

You have to write a detailed letter to your bank explaining the reason for the request for the extension, (non-getting of employment, going for further higher studies, insufficient salary in the present employment to meet the EMI fixed for repayment, etc ). 

Based on the genuineness of your request the bank can extend the repayment period. If your request has been accepted, ensure to get a revised sanction from the bank to avoid future legal complications. The revised sanction letter will have the latest balance outstanding and revised EMI.

Ensure that you will adhere to the revised terms and conditions of repayment of the loan. Both will be benefited. Bank will avoid the NPA and provisions required for the same and earn interest income besides recovery of the principal. you will get the time frame to repay the loan.

Also read: What Happens When You Fail To Repay Education Loan

Feeling lost in a sea of student loans? Let us be your compass and guide you to the funding solutions.

Education Loan Sanction Letter Validity Extension

An education loan sanction letter includes the basic information about the education loan( loan amount, interest rate, borrower’s name, loan tenure) and other terms and conditions. It is proof that the student has applied for and been approved for the loan.

Your sanction letter stays valid for 6 months, which means you had to take your first disbursement within 6 months from the day of its issuance.

But you can extend your validity from 6 months to 12 months in Government banks if you choose to defer your course.

You can stress-proof yourself from having to apply for an extension of your loan terms. Simply apply via WeMakeScholars, an organization funded and supported by the Government of India. 

The team at WeMakeScholars will take care of your entire education loan process, will assist you, and if required will talk to the bank on your behalf.

Education Loan FAQs

  • Can a borrower negotiate the terms of the education loan extension with the lender?

    Yes, borrowers can negotiate the terms of the education loan extension in India with the lender. However, the lender may or may not agree to the borrower's request based on their policies and the borrower's financial situation. But at WeMakeScholars you will get the benefit of full negotiation support from experts on various terms and conditions of Loans.

  • Can a borrower still apply for an education loan extension in India if they have relocated to a different city or state?

    Yes, borrowers can still apply for an education loan extension in India if they have relocated to a different city or state. They need to provide evidence of their new address and update their contact details with the lender.

  • How long does it typically take for a lender to approve an education loan extension in India?

    The time taken for a lender to approve an education loan extension in India may vary depending on their internal processes and the borrower's individual circumstances. It could take anywhere from a few days to a few weeks. Simply applying via WeMakeScholars for an extension will reduce your approval time.

  • Can a borrower apply for an education loan extension in India if they have defaulted on their loan payments in the past but have since made regular repayments?

    Yes, borrowers who have defaulted on their loan payments in the past but have since made regular repayments can still apply for an education loan extension in India. However, the lender may consider their repayment history, CIBIL score before approving the extension. To remove your confusion or doubt regarding Loan Extension or anything regarding your education Loan, you can directly approach our team they will guide you accordingly.