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An education loan balance transfer is a process that allows you to transfer the outstanding balance on your education loan from current lender to new lender, especially one which offers lower interest rate. The loan is funded by most banks and NBFC’s to the needy students, to pursue their studies further. This is one service which has helped for years to aid aspiring students in achieving their academic pursuits. The purpose of this loan is to help the poor and needy students to undertake basic education as well as also to those meritorious students to pursue higher/professional/technical education, after passing 10+2 or equivalent.
1.Low Interest Rate: Balance transfer of a loan is done to lower the interest rates of the existing loan.
2.Need to Save more: When the interest rate of the running loan is reduced, it eventually leads to reduced EMIs. This helps in saving those extra amounts, that can be utilized for the expansion of business.
3.Better Services The process of balance transfer should be done with the renowned players in the market, to avail better rate of interest, great features and services.
1.Compare the before and after deal: Ensure to go ahead with a profitable deal of balance transfer on education loan. It should have a low interest rate, and convenient repayment tenure
2.Consider processing fee and other charges involved: The process of balance transfer involves processing charges, foreclosure charges and few other charges, which the applicant will have to abide by.
3.Read the fine print carefully Fine print is a complete legal document, mentioning all the terms and conditions of the balance transfer. It is crucial to read the document thoroughly and then sign it.
Suppose Mr. Gupta has an existing education loan outstanding amount of Rs.7 Lakhs for a tenure of 4 years. He can transfer the existing education loan to a new lender at a lower rate. By transferring a 4 year education loan of Rs. 7 lakhs from 11.57% to 10.25% the EMI can reduce from Rs. 18,286 to Rs. 17,837. The total saving on interest after balance transfer is Rs. 21,552
Process of Education Loan Balance Transfer -
If you want to go for an education loan balance transfer, take a look at the process below:
The balance transfer on education loan involves additional charges of processing fee, foreclosure charges, and stamp duty on the loan agreement.
Use the education loan balance transfer calculator to figure out the reduction in EMIs and the cost of the loan, resulting from an education loan balance transfer. Using education loan balance transfer calculator is pretty simple; complete the following steps to find out profits from the balance transfer.
Different bank provides different offers and benefits on education loan balance transfer. Before finalizing the new lender, it is crucial to evaluate all the details on balance transfer of the chosen lender.
Transfer your education loan to Axis Bank and enjoy affordable interest rates.
You can avail better services on your education loan balance transfer with Kotak Bank.
Enjoy hassle free documentation and complete assistance on education loan balance transfer with Bajaj Finance.
Avail education loan with ICICI Bank at affordable interest rate.
Get best features and benefits on education loan with the largest bank of India, SBI
Top Cities for Education LoanEducation loan in Amritsar