The document discusses education loan refinancing in India. It explains that students can refinance their education loans to get a lower interest rate and better terms from a new lender. Some key benefits of refinancing include lowering interest costs, consolidating multiple loans, and extending repayment terms. The best time to refinance is after graduating when repayment risk is lower. The process involves applying to the new lender and having them pay off the original loan. Refinancing can save on total interest costs if charges are lower than savings on the new loan.

1. Education Loan
Refinance

2. • Students often end up taking a
loan at a high rate of interest or
with repayment policies that prove
to be unsuitable in the future.
• In such cases, students can switch
from the old lender to a new lender
that offers a lower rate of interest
and better terms on the loan.
• An education loan refinance or
education loan transfer thus
means repaying the old loan with a
new loan taken from a new lender.
• Most Indian lenders such as SBI,
ICICI Bank, Axis bank, etc., and
NBFCs offer education loan
refinancing options.
Why to
Refinance
Education
Loan?

3. What are the
Benefits of
Education
Loan
Refinance?
• Lower Rate of Interest - You can
negotiate for a lower interest rate on
your new loan which will substantially
reduce the EMI to be paid . Let us take
an example:
• First loan - INR 20 lakhs with a rate of
interest of 12% to be paid in 9 years.
The total interest to be paid is INR
19,68,553.
• Refinanced Loan - INR 20 lakhs with an
interest of 10%.
Total interest to be paid over seven years
is INR 11,39,007.

4. • Refinance a Secured Education
Loan With an Unsecured Education
- This helps students to reduce the
financial burden on their family
members who provided them with
the collateral.
• Consolidate Different Education
Loans Into One New Refinanced
Loan - Students who have opted for
multiple loans can therefore get rid
of the problem of multiple
payments.
What are the
Benefits of
Education
Loan
Refinance?

5. • Extend the Loan Tenure - If a
student is unable to repay the loan
within the stipulated period,
restructuring of an education loan
will help him/her. Students can opt
for a restructured loan with an
extended tenure with a lower
monthly EMI. However, the total
interest amount would go up in this
case.
What are the
Benefits of
Education
Loan
Refinance?

6. ⮚ The best time to get your education
loan refinanced is after you graduate
and start working due to following
reasons:
● Once you have a job, your
repayment risk reduces.
● Since you have a steady
source of income, your risk-
taking ability increases, and
you are in a better position to
negotiate the terms and
conditions of the loan transfer.
● Once you get employed after
graduating, you can get better
terms from lenders for your
education loan refinancing.
When Should
you
Refinance You
r Education
Loan?

7. ➢ Factors commonly taken into account
by lenders when refinancing an
education loan are:
○ Income
○ Credit history
○ Credit score
○ Debt-to-income ratio
○ Financial behavior
○ Employment history
○ Residency status
➢ Specific eligibility requirements may
vary as per different lenders.
Who are
Eligible to
Apply for
Education
Loan
Refinancing?

8. ➢ Approach the current lender and
apply for a loan foreclosure with a
foreclosure application letter.
➢ Now, apply to the new lender for
refinancing the existing education
loan. For this, common documents
required to be submitted are:
○ Age and address proof
○ Income proof
○ Photo for KYC
○ Documents given by the previous
lender
○ Property documents (in the case
of secured loan)
○ Bank Statements
What is the
Process of
Education Loa
n Refinancing?

9. ➢ Once the new lender approves the
loan refinancing, it addresses a
cheque for the outstanding loan
amount to the previous lender.
➢ Once this cheque is realized, the
previous lender will foreclose the loan
and hand over all your original
documents.
What is the
Process of
Education Loa
n Refinancing?

10. ➢ Compare the foreclosure charges
being paid to the existing lender and
the sum of the processing fee and
documentation charges being paid to
the new lender with the total savings
being made with the restructured loan.
Choose restructuring of the education
loan only when the savings are more
than the charges involved in
refinancing.
➢ Make sure that your CIBIL score is
above 600, else your application will be
rejected. And if at all lenders agree to
refinance, they will do it at a higher rate
of interest, thereby not helping you at
all.
Note - Check How to Improve CIBIL Score
Key Points to
Watch out for
While Opting
for a New
Lender?

11. ➢ Opt for loan refinancing during the
early stages of your loan repayment. A
student who has a loan repayment
period of 5 years will only benefit from
loan refinancing if he/she opts for it
during the first two years of loan
repayment.
➢ Read the loan transfer document
carefully and understand each point.
Key Points to
Watch out for
While Opting
for a New
Lender?

12. ⮚ We assist hundreds of students in
getting their education loans
refinanced. If you too want to get your
education loan refinanced, follow these
easy steps:
⮚ Fill GyanDhan’s form to find the
amount which we save on your loan
repayment post education loan
transfer.
⮚ If the deal seems attractive to you, let
our education loan counsellors know
and they’ll give you a call
How can
GyanDhan
Help?

13. ⮚ We will do the necessary
documentation and get your loan
approved from the new lender, post
which the current lender will get the
money from the new lender.
⮚ From next month onwards, you will
have to pay monthly EMI to the new
lender which will be less than what
you pay currently.
⮚ The provision of education loan
refinancing is available to students
currently studying in their second
year too!
How can
GyanDhan
Help?

14. contact@gyandhan.com
+91 9319431090
www.gyandhan.com
Get the Best Education Loan
Refinancing Options Through
GyanDhan and Lighten Up the Burden
of Your Education Loan!