✓ Benefits of Loan Transfer
✓ Process of Loan Takeover
While deciding on a loan provider, it is very important that you conduct thorough research of their terms and conditions regarding abroad education loans.
But what if you end up borrowing an education loan from a lender whose interest rates are very high or if their education loan repayment policies are not convenient for you? If you are stuck in such a situation, there is a way out by transferring your education loan from one bank to another, known as an education loan transfer or education loan takeover.
This article aims to give you complete information about an education loan transfer/takeover and when you should consider switching your education loan lender.
Or better yet, hear all about it from Damini Mahajan, the co-founder of WeMakeScholars and the speaker for the 13th episode of Loanflix, ‘Education loan transfer: Things to know.
Education loan transfer includes an extended process of transferring debt from one bank to another. Most students prefer education loan transfer from one bank to another because of the higher interest rates, unfriendly repayment policy of the bank, etc.
There are basically 4 types of Education Loan transfers/takeovers:
Here’s how an education loan transfer from one bank to another works. Let’s assume that you took an abroad education loan from an NBFC because of their shorter processing time and later on you are not satisfied with their education loan repayment policy and would like to opt for a student loan refinance from a public bank.
In such a situation, you may apply for an education loan transfer from your NBFC to a nationalized bank. Here’s how it can be done.
It is to be noted that when an unsecured education loan from a private lender is being transferred to a public bank, the collateral must be pledged if the loan amount that is being transferred is more than 7.5 lakhs.
A loan applicant may opt for an education loan transfer from one bank to another only when-
The rest of the terms and conditions are similar to those of a regular abroad education loan. If you are still facing any doubt regarding your eligibility for a takeover loan, Please feel free to request our financial team for a callback, as our team has special expertise in processing huge volumes of education loan transfers. Our team will respond at the earliest.
A takeover of your education loan by another lender brings with it a lot of financial benefits.
Our team's expertise is built on the knowledge acquired from processing huge volumes of education loan applications every year. So, if you are someone who is stuck with the wrong lender who is charging you a bomb in the name of interest, do approach our team to help you get an education loan transfer to a bank that charges a lower interest rate.
We hope this article helps you solve your doubts regarding education loan transfer. For any further assistance, feel free to contact the financial team at WeMakeScholars.
Will my credit score be affected if I transfer my education loan?
Your credit score may or may not be affected when you apply for an education loan transfer, as the new lender will conduct a credit check. They will explain everything depending on your profile. However, if you make timely payments on the new loan, your credit score will improve over time if it may get slightly affected.
Will I be charged a penalty if I transfer my education loan before the end of the repayment period?
It depends on the terms and conditions of your existing loan. Some lenders may charge a penalty for early repayment, while others may not. You should check with your existing lender before applying for a transfer.
Can I transfer my education loan if I have defaulted on payments?
It is unlikely that a new lender will approve your education loan transfer if you have defaulted on payments. You should first clear your outstanding dues and improve your credit score before applying for a transfer.
Can I transfer my education loan to a lender that offers a lower interest rate?
Yes, you can transfer your education loan to a lender that offers a lower interest rate. However, you should also consider other factors such as repayment terms, processing fees, and customer service before making a decision. It is important to evaluate the overall benefits and costs of the transfer to determine if it is financially beneficial for you.