Overview of Education Loan Transfer
An education loan balance transfer helps reduce your interest payment while giving you great flexibility in managing your repayments.
- Education loan transfer shifts your loan to a lender with better terms.
- Balance transfer education loan helps reduce interest rates and monthly EMIs.
- Can education loan be transferred? Yes, to improve repayment flexibility.
- Transferring loans offers better service, lower costs, and simpler management.
- Education loan transfer can ease repayment by extending your loan tenure.
Reasons For Education Loan Balance Transfer
Education loan balance transfer to a fresh lender is a game-changer for your finances.
Lower Interest Rates
The biggest appeal of education loan transfer is lower interest rates
Reduced Monthly EMI
Lower interest rates and adjustment of tenure lead to reduced monthly installments
Flexible Repayment Options
A new lender could offer a lengthy repayment tenure or features such as income-based repayment plans.
Improved Loan Terms
Many lenders offer education loan balance transfers with additional perks like zero processing fees.
Compare Top Banks for Education Loan Transfer & Find the Best Deal
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 %
Eligibility & Documents Requirements For Education Loan Transfer
To transfer your education loan to a new lender, you have to meet multiple eligibility criteria and documentation requirements.
Eligibility Criteria for Education Loan Refinance
- Good credit score (650-720)
- Stable income and employment
- Active loan repayment
- Regular EMI payments
- Completed loan disbursements
- Favorable debt-to-income ratio
Documents Required for Education Loan Refinancing
Loan Related Documents
- Sanction Letter
- Repayment Schedule
- Foreclosure Letter
Personal identification
- Aadhaar
- PAN
- Proof of residence
Financial documents
- Salary slips
- ITR
- Bank statements
Academic records
- Mark sheets
- Admission letter
Additional documents
- Employment Proof
- Consent Letter
- Original Collateral Letter
Step-by-Step Process to Transfer Your Education Loan
An education loan transfer helps you get lower interest rates, excellent repayment options, and better loan terms.
Loan Evaluation
Check interest rate, tenure, and EMIs of existing education loan.
Lender Comparison
Compare balance transfer education loan offers from multiple lenders carefully.
Submit Application
Apply for education loan transfer and upload all required documents.
Transfer Approval
New lender repays old loan; you start better repayment terms.
frequently asked questions
Can an education loan be transferred to another bank?
Yes, you can transfer an education loan to another bank. The process is known as education loan balance transfer and is quite common.
The primary reason is to secure a lower interest rate with a new lender. When you negotiated an education loan as a student, you had to accept the rate the bank gave you. But since you are employed, it is easier to refinance with a lower interest rate.
If you feel that you are paying too much interest, it is a good move to consider an education loan transfer. FDM Finance can help you transfer your education loan balance to a new lender in a simple, transparent, and hassle free manner.
What are the benefits of transferring my education loan?
There are many benefits of education loan balance transfer. Here are the most important among them:
Lower Interest Rates
You will receive a lower interest rate. On a large loan, this translates to a saving of several lakhs over a few years.
Better Repayment Terms
The new lender might offer novel features such as income-linked payment. You would also likely receive a longer tenure.
Improved Customer Service
If you studied abroad with a loan from a bank, you might want to shift to another institution for better service. There is less hassle and greater clarity in every step.
Consolidate Loans A new lender also allows you to consolidate loans. Maybe you have credit card debt and an auto loan besides the education loan. A new loan package brings together all these and lets you make a single payment each month.
What is an NOC or No Objection Certificate for an education loan balance transfer?
Though you may want to transfer your education loan, your current lender might disagree. There may have been payment disputes, delayed payments, multiple renegotiations, and other problems.
The fresh lender likes to be assured that the previous lender has no objection to your loan being transferred. A certificate to this effect is therefore necessary.
What documents are required for transferring an education loan?
You need to submit multiple documents for an education loan transfer. Though the process varies between banks, here is a general checklist:
- Completed education loan balance transfer form
- Passport-size photos
- PAN card of the applicant
- Aadhaar Card of the applicant
- Bank statements for the past six months
- Salary slips or other proof of income for the past year
- Previous education loan agreement
- No objection certificate from the previous lender
- Proof of completion of a degree
- Proof of ongoing EMI repayment
Will transferring my education loan affect my credit score?
When you transfer an education loan, initially, your credit score might dip by 10-20 points. Any new credit activity, such as applying for a credit card, does the same. However, a few months of regular repayment would restore your previous score.
The consolidation of multiple loans into a fresh new loan will also lower the average age of credit, which has a positive impact.