Everything About Reliance Arc Education Loan Settlement

Education loan borrowers often face challenges while repaying their education loan. Did you know that in March 2023, Reliance Asset Reconstruction Company (RARC)* received a INR 306.4 crore education loan portfolio from Indian Overseas Bank (IOB) through a Swiss auction. The portfolio included INR 10,705 non-performing education loan accounts. RARC's successful bid of INR 122.5 crore allowed IOB to recover over 40% of the loan amount. This is where Reliance Arc Education Loan proves to be most useful. It helps students struggling with education loan debt.

Reliance Asset Reconstruction Company (RARC) is a subsidiary of Reliance Capital Limited, specializing in the acquisition and resolution of distressed assets, including non-performing education loans.

Impact of Reliance Arc Education Loan Settlement on Borrowers

Reliance ARCs in India education loan settlement is intended exclusively for students who are unable to repay their student education loans. Reliance education loan settlement has a considerable influence on the borrower, ranging from reducing financial strain to avoiding legal consequences.

‍Reliance ARC Settlement Eligibility Criteria

Borrowers who wish to avail of the benefits of reliance education loan settlement, they must follow and adhere to certain rules and eligibility criteria - 

Regulating the Impact of Predatory Lending Practices:

Borrower’s can have a better understanding of how to stop predatory lending in the future by looking over the settlement agreement and any proposed changes. Prior to delving into Reliance ARCs in India criticalities, they must comprehend how predatory lending disproportionately affects communities.

Improving Lender Accountability to Safeguard Consumer Interests:

Borrower’s can compel lenders to treat them fairly by holding lenders equally responsible. They must make wise judgments by keeping an eye on lenders' activities, abiding by consumer protection regulations, and dealing with cases of wrongdoing or unethical behaviour.

How to Managing Student Loan Debt?

When settling an education loan via Reliance Arc settlement, lenders and borrowers negotiate a one time settlement for education loan. Now, this amount is generally less than the actual amount. This helps borrowers to reduce their overall financial crunch. The big question is how to manage the student loan debt and settle as soon as possible. Below are listed some practical advice for Reliance Arc Education loan settlement.

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  Create a Budget - The most important step in managing an education loan debt is to create a sustainable and practical budget . This budget should include the most important expenses of the borrower and prioritize the repayment of education loans. Once a budget is prepared, understand the repayment methods and schedules carefully and choose the best one. Staying organized and proactive can help you manage your student loan debt effectively.

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  Understand Repayment Plans with Lenders - Next, negotiate your repayment plan with your lender. Opt for refinancing your education loan and choose a lender with lower interest rate and relaxed repayment options. If you are considering refinancing your education loan, then connect with GyanDhan today. By leveraging our extensive list of lenders, we can choose the best lender for your education loan refinancing.

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  Seek Alternate Resources - Seek out financial counselling if you are having trouble repaying your student loan balance. When you are about to go behind on your debt, it is imperative that you get assistance. Borrower’s can guarantee financial security and successfully pay off their debt by actively controlling it and utilising the tools that are available.

Due to Reliance ARCs in India involvement in purchasing distressed education loans, borrowers have the chance to reach a settlement, possibly at a reduced amount; however, it is important that borrowers proceed with caution, making sure that all agreements are valid and, if required, seeking legal counsel to safeguard their financial interests.

Frequently Asked Questions