Overview of Education Loan Refinancing
Education loan refinancing allows borrowers to replace their existing student loans with a new loan with better terms. With refinancing, you can save substantial money over the life of the loan.
- Education loan refinance lets you replace your student loan with a low-interest loan.
- With refinancing, you can reduce your monthly payments and financial stress.
- Student loan refinance helps simplify multiple loans into one.
- Refinancing reduces your monthly EMI and frees up money for essential expenses.
- Many international lenders offer student loan refinance options for Indian students abroad.
Advantages of Refinancing Loan
As a student, you had limited choices. As a working professional, you can refinance your education loan on far better terms and conditions.
01 Streamline Multiple Loans
You can combine multiple loans into a single one.
02 Flexible Repayment Options
You can choose a plan that suits your financial goals
03 Release of Collateral
The loan collateral becomes free of the bank’s hold.
04 Lower Interest Rates
Refinancing carries lower interest rates and reduces the burden.
05 Unsecured Education Loan
Under new loan terms, cosigners are relieved of their liability.
Compare Education Loan Refinancing Providers
Bank Name
Loan Amount
Interest Rate
Processing Time
Processing Fee
Upto INR 2 Crore
9.95% - 12%
7 Days
0.5 - 1%
Upto INR 2 Crore
9.95% - 13.50%
10 Days
0.75 - 1%
Upto USD 200K
10.5% - 14%
7 days
100USD+ 5%
Upto INR 1.5 Crore
10.15% - 11.15%
25 days
INR 10,000
Upto INR 1.5 Crore
9.75% - 13%
14 days
0.75%
Upto INR 1.5 Crore
10% - 13%
7 days
0.85 - 1 %
Upto INR 1.5 Crore
10.50% - 13%
7 days
1%
Upto INR 1 Crore
9.95% - 12%
7 days
0.5 - 1 %
Education Loan Refinancing: Eligibility and Document Requirements
Education loan refinancing gets you lower interest rates and more favorable repayment terms. Here are the eligibility criteria and necessary documentation.
Eligibility Criteria for Education Loan Refinance
- You must be an Indian citizen.
- You should have an existing education loan.
- You must have a stable income source.
- A good credit score is preferred.
Documents Required for Education Loan Refinancing
- Identity Proof
- Aadhar Card
- PAN Card
- Passport
- Voter ID
- Academic Documents
- Degree completion certificate
- Financial Documents
- Latest bank statements (last 6 months)
- Income proof of the applicant
- Existing loan statements
- No objection letter from the current lender
A Step-By-Step Process To Education Loan Refinancing
Education loan refinancing transfers your loan obligation from one financial institution to another.
Loan Review
Review your current loan’s interest rate, repayment terms, and outstanding balance.
Lender Comparison
Explore balance transfer education loan options from various lenders to find better rates.
Apply Now
Your or your co-applicant’s credit score and income will determine whether the loan is approved.
Transfer Approval
The new lender clears your old loan, and you begin repayments under new terms.
frequently asked questions
What is an education loan refinance?
Education loan refinancing means getting a new loan from a different lender that pays off your existing education loan. The new loan has a lower interest rate and brings better terms. As a student, you had no way to select the terms and conditions and may have accepted higher interest rates. As an earner, you can negotiate for lower interest rates and save money.
Can I refinance my education loan if I am studying abroad?
You cannot refinance your education loan while you are studying since the payment period has not arrived yet. You can refinance after you start repayment. The new lender can be from India or any other country.
What documents do I need to refinance my education loan?
You must be prepared to provide necessary documentation. These include:
- Proof of employment
- Salary slips
- Bank Statements
- Work visa details (if applicable)
- Existing loan statements
- No objection letter from current lender
Can I refinance my student loan more than once?
Yes, you can refinance your student loans multiple times. As long as you meet the lender’s eligibility criteria, there is no bar. It’s a common practice to refinance a student loan to get a better interest rate or repayment terms.
You can also consolidate multiple loans into a single loan. Assume you had taken out a personal loan for your expenses abroad and also a home loan for the purchase of an apartment after graduation.
If the various lenders agree to prepayment, you can consolidate all of these into a single loan package. This helps with budgeting and long-term decision-making instead of keeping track of multiple EMIs and loan balances.