Student loan refinance is one of the best ways to make your loan cheaper in a rising interest-rate environment. When you plan to refinance your education loan, you need to choose a bank which will offer you lower interest rates and easy repayment options for your education loan. To finalise a bank for education loan refinance you need to compare lenders in a lot of things like interest rate, repayment period, EMI amount, processing fees and any other charges.
Let’s check the plans, terms and conditions and all the eligibility criteria of the best banks providing education loan refinancing.
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SBI Takeover of Education Loan
State Bank of India is the largest public sector bank in India and one of the most preferred banks for education loans and refinance. SBI has a dedicated scheme for education loan refinance named SBI Takeover of Education Loan. You can flexible repayment period of up to 15 years for an SBI education loan balance transfer. You can get a loan up to INR 1.5 crores. Check other major features below:
| Particulars | Details |
| Eligibility Criteria | – The Loan should be a fresh takeover loan i.e. first time refinance – The applicant should be a major (above 18 years of age) at the time of the loan refinancing – The entire loan amount should have been fully disbursed at the time of the takeover. – Repayment should have been started and the EMIs are regular in the books of existing Bank/Financial Institutions |
| Documents Required | – Education Loan Refinancing Application Form – 2 passport-size photographsPAN Card of the student and Parent or co-application – Aadhaar Card/UID of the applicant and co-applicant – Identity Proof such as a Driving Licence/Passport/Aadhaar or any other acceptable photo identity – Residential Proof (Driving Licence/Passport/Electricity bill/Telephone bill) – Bank account statement of the applicant and co-applicant for the last 6 months – IT return for previous 2 years, of co-borrower (if exist/paying income tax)Brief statement of assets and liabilities of co-borrower – Income proof (i.e. salary slips/ Form 16) of Parent/ Guardian/ other co-borrower |
Also Read: Credit Score and its Impact on Education Loan Refinance
HDFC Bank Loan Refinance
HDFC Bank is one of the leading private banks in India. The bank offers a lot of attractive schemes for education loan refinance at low-interest rates. What makes it more attractive is that even if you are in a different city or a different country away from your parents then also you can get the loan easily and conveniently. HDFC Bank education loan refinancing has attractive features like lowest interest rates, longer repayment period, online approval etc. Check the details of the HDFC education loan refinance below:
| Particulars | Details |
| Eligibility Criteria | – The loan should be a first-time refinancing and the entire amount of the existing loan must have been disbursed. – The applicant should be above at the time of the loan refinancing application. – Repayment must have been started. – A good credit score shall have been maintained by the borrower. – The presence of students is not mandatory. |
| Documents Required | – Address and identity proof of both the student and the parent or co-applicant. – Income proof of co-applicant PAN and UID of both student and parent/co-applicant. – Details of the last qualifying exam and marks secured. – Collateral details (if required). |
IDFC First Bank Education Loan Refinancing
IDFC First Bank is another private bank operating in India that offers attractive rates of interest and bigger loan amounts for education loan refinance. This bank offers collateral-free loans of up to INR 50 lakhs for study-abroad students. The loan tenure is also as per your convenience subject to terms and conditions. You can even take a top-up loan from the bank over an existing education loan if required. As per the bank’s website, the rate of interest will be at least 1% lower than existing if you apply for an education loan refinance. Check some major features of IDFC First Bank Education Loan Refinancing:
| Particulars | Details |
| Eligibility Criteria | – The loan transfer should be a ‘first-time takeover’, i.e. the application should be the first time when you are applying for your education loan refinance. – The bank has specified clearly that you must have a good credit score (above 700). |
| Documents Required | – Photo ID Card of student and co-applicant – Address Proof – Admission Proof – Document showing fee breakup Salary slip (if you are an experienced candidate) – Visa copy – Other academic Documents – Property and FD Documents (if required) |
Also Read: How to Find Best Education Loan Refinancing Rates and Lenders
Important Guidelines Regarding Student Loan Refinance
Education Loan Refinancing makes your loan cheaper and the repayment also gets easy. However, there are certain things which you must consider while applying for an education loan transfer.
- Try getting a pre-approved offer for education loan refinance based on which you will be able to negotiate with other lenders over interest rates and repayment periods.
- As running EMI for existing loan repayment is necessary make sure that you are paying all your EMIs on time without any delay.
- Always make payments for all bills like credit cards, EMI etc so that your credit score can increase exceptionally.
- Don’t rely only on banks for your education loan transfer. Always do proper research and explore banks, NBFCs and other unions offering a balance transfer on education loans.
- Read all the terms and conditions properly and understand them so that you can identify the best offer for you.
Note: The details of the banks and the eligibility are mentioned as per the data available on the website of the bank. Students are suggested to seek advice from financial experts of CAs for any kind of queries. Also, there are other government banks as well with whom you can contact by visiting the branch.
FAQs
Yes, student loans for education can be refinanced. This is done to get flexible repayment options, lower interest rates, and other benefits.
Education loan refinance interest rates will vary from bank to bank. You can get interest rates for education loan refinance between 8-15% subject to the terms and conditions.
As per the data available on the website of IDFC First Bank, it offers a 1% lower rate of interest than the existing interest rate on your loan.
You can get an education loan to refinance without collateral up to a limited amount. For a bigger loan amount, you need to pledge some kind of collateral whose value must be at least 100% of the actual loan amount.
To avail student loan refinancing services, the credit score varies from lender to lender. However, a credit score above 680 gives out better chances for an education loan refinancing.
This was all about the best bank for student loan refinance. Contact your bank/NBFC for all the terms and conditions regarding your loan and eligibility.
To know more about education loan refinance, the best international bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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