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Is Education Loan Extension Possible in India?

Is Education Loan Extension Possible in India?

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Read the blog to know whether or not you can defer your education loan with banks and other financial institutions in India. Know all the criteria, terms and conditions.

GyanDhan
Aman
Updated on:  20 Sep 2024  | Reviewed By:  Ankit Mehra  | 6.16K | 7  min read
In 2020, even though most schools and colleges in India adapted to the online mode of teaching and learning, thus bringing back some sort of normalcy for the students; the same cannot be said for students who were planning to head abroad for higher education. Additionally, most international Universities had closed down and were asking international students who had got admission earlier, to either pursue one semester online or to re-apply in 2021.
 

This left the students in a quandary since the entire process of applying, sanction, and disbursement of an education loan is quite tedious and filled with uncertainty. Therefore, one of the biggest questions that bothered students who had already got their education loan sanctioned is whether they would be allowed deferment on their education loan in India. For all such students, we have come up with this detailed blog that will help answer this very important question and thus help them calm their nerves. 

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What is Deferment in an Education Loan?

Deferment means an extension of the education loan. Public banks, private banks as well as NBFCs all mandate that the borrower applies for the first disbursement of the education loan within six months of sanction of the loan application. Failing to do this results in the education loan getting canceled. But in the case of education loan deferment, the lender decides to extend the disbursement of the loans by a few months.

 

Let us now discuss the possibility of extension for secured education loans as well as unsecured education from public banks, private banks as well as NBFCs. Let us keep in mind that the below discussion is meant for students who got their education loans sanctioned via GyanDhan. 

Secured Education Loans:

A secured education loan is one where the borrower has pledged some assets when taking the education loan. In the current scenario, most universities across the world have postponed new intake to Fall 2021. If your course too has been postponed to Fall 2021 and your lender, a government bank, has sanctioned your secured education loan; then you need not restart the entire education loan process again. All you need to do is to pay half the processing fee and submit a new legal report for the collateral you are pledging and your loan will be revalidated at the processing center easily.

 

Private banks and NBFCs to have decided to provide deferment to already sanctioned secured education loans. 

Unsecured Education Loans:

An unsecured education loan is one where the borrowers/student does not attach any collateral when taking an education loan. Before the pandemic hit us, in case of unsecured education loans from private banks and NBFCs, students who pay the processing fees and have their loan sanctioned need to apply for disbursement within 6 months. The loan was rejected if this was not done and students had to forfeit their processing fee too. However, private banks and NBFCs have now agreed to defer the loan disbursement of students whose University has postponed their program for Fall 2021. If you fall in the above categories, then you have a good chance that your education loan disbursement can be deferred. 

 

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What if a student is asked by his host University to complete a semester online?

A number of Universities have asked students to complete their first semester online. If your University too has issued such a direction, then you would be happy to know that our partner lenders have said that studying online would not affect the disbursement of the loan.

 

Having explained that education loan deferment is possible in the current Covid situation, the entire process can be a very tedious process for students. This coupled with the fact that most students are unaware of the nitty-gritty related to education loan deferment makes it even harder to convince the lenders. It is here that GyanDhan can come to their rescue.

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How can GyanDhan help with education loan deferment in India?

We at GyanDhan have always been at the forefront of helping students make their study abroad dream come true- right from helping them get an education loan for studies abroad at the best terms and conditions to providing services even after their education loan has been sanctioned. Even during these testing Covid-19 times, we remain committed to helping our students with their study abroad mission and hence had approached our partners - public banks, private banks as well as NBFCs - to help such stranded students with education loan deferment.

 

Our students need not go through the whole process of re-applying and paying the processing fees for an education loan again. Even if you are a student who has not taken our help and have got your education loan sanctioned but are unable to travel abroad because of Covid induced travel restrictions, then you can approach GyanDhan and get the best possible solution. As the countries are gradually opening their borders and normalcy is returning slowly, you must not dampen your spirits and with GyanDhan’s timely help, we are sure that you will rise and shine and make your study abroad dream come true.

 

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