How to Customise Top-Up Education Loan As Per Your Needs

Customise Top-Up Education Loan

Education loan to study abroad is one of the most preferred options among students. However, there are chances that you can face situations where the loan amount won’t be enough to pay the tuition fee and accommodation. 

For example, if your college didn’t conduct the semester exam due to a pandemic or any other reason and there is a delay of 6 months. In this case, you will have to stay in that country for more time due to which you will take a top-up loan. 

In this blog, we’ll explore how Indian students can customise their top-up education loans to match their study abroad experiences.

Why it is Important to Customise a Top-up Education Loan

Sharan got an education loan of INR 20 lakhs to pursue an undergraduate program at the University of British Columbia. Due to some reasons, he had to stay 6 months more than the estimated period and the course is yet to be completed. Now Sharan was falling short of funds and it became difficult for him to manage the expenses. 

He then consulted with his banker about an extension in the repayment and a top-up loan. The bank agreed after analysing the circumstances and found it valid and then offered INR 10 lakhs. However, Sharan only wanted INR 5 lakhs more to manage the expenses. He then asked the bank to lower the loan amount and the repayment period as per the required amount and also produced supporting documents. The bank curtailed the amount and sanctioned a loan of INR 5 lakh. With this story, we can understand that if you have a valid reason and necessary evidence supporting your demand, you can easily get a top-up education loan customised as per your requirements quickly with an extended repayment period. 

Always compare the bank and NBFCs before finalising a lender for taking a personal loan for debt consolidation. Check this blog to know about some of the

Best student loan consolidation banks

Customising Your Top-Up Education Loan

Before deciding to take an education loan top-up you must analyse your situation and anticipate the financial needs for the upcoming period. There must be a valid reason behind taking a top-up education loan with an extended repayment period. By doing such things you will able to customise your education loan top-up properly. Let’s check some of the major factors related to the customisation of top-up education loans.

It is very important to understand all the major factors of education loan top-up. You can read this blog on the overview of 

Top-up education loan

Adjusting Loan Amount

If you find that your current loan amount is insufficient to cover tuition fees, living expenses, or other educational costs, you can request an increase in the loan amount. Also, if you decide to proceed further studies in the same or any other country or university then make a proper fee breakup and share the same with your bank. 

Change in Interest Rate

Depending on the lending policies of the bank, you may be able to explore options for reducing the interest rate on your loan. Also, with an increased amount of loan and repayment period the EMI will also increase and the interest accrued over the moratorium period will be added to the principal. Always calculate the overall repayment amount before applying for a loan top-up. 

Repayment Tenure Extension

Extending the repayment tenure for the education loan can result in smaller monthly instalments, providing more flexibility in managing your finances while studying abroad. Always negotiate with your bank over the repayment period and opt for a longer term. However, you must keep in mind that a longer repayment period will attract more interest, thus increasing the overall loan cost. 

FAQs

How can I apply for a top-up education loan?

To get a top-up education loan you can simply contact your current banker and tell them about your requirements. The application process for a top-up loan is mostly online. 

Can I get a top-up loan from another bank?

Taking an education loan top-up from the existing bank is more convenient. Also, other banks may not entertain applications for top-up education loans. They may offer you to refinance your education loan under which they will cover the top-up loan. 

What is the interest rate for education loan top-up?

The interest rate for education loan top-up varies from bank to bank. Also, it depends on the market rate at the time of application. 

Indian students studying abroad often face dynamic financial situations that require adapting their education loans to meet their expenses. Customising your top-up education loan allows you to bridge financial gaps, manage unexpected expenses, and ensure a comfortable financial journey throughout your academic journey. 

To know more about personal loans for student loan consolidation, the best 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. 

Related Blogs
How to Apply for Education Loan Refinancing 
All About Secure Loans: Types, Benefits, Eligibility
Document Required for Education Loan Refinancing 

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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