Balance transfer
Education Loan Balance Transfer: Cut Your Interest Rate
If you took an expensive unsecured loan to secure your visa, you don't have to keep it for 10 years. Once you have a job, a strong co-applicant or property, moving the loan to a cheaper lender can save lakhs.
- Move to a lower rate
- Best after you start earning
- No foreclosure penalty on floating loans
- Check processing fees
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Quick answer
Education Loan Balance Transfer: Cut Your Interest Rate
A balance transfer moves your outstanding education loan to a new lender at a lower rate. The new lender pays off the old one and you repay the new loan. It makes sense when the rate gap is at least about 1–1.5 percentage points and several years are left. It's easiest once the student has a job or when you can offer collateral.
Example
Savings on a ₹40 lakh balance with 8 years left
- Sanction letter and statement of the existing loan
- Repayment track record (no missed EMIs)
- Student's job offer, salary slips or visa status, if working
- Co-applicant income proof
- Collateral documents, if moving to a secured loan
FAQs
Frequently asked questions
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Ask a counsellor directly — we reply on WhatsApp during working hours (Mon–Sat, 9 AM–6 PM IST).
Not on floating-rate loans to individuals from banks and NBFCs. Check fixed-rate loans for charges.
Some lenders take over loans during the course, but it's easier once repayment has started and the student has an income.
Some lenders offer a top-up for the remaining semesters along with the takeover.
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More education loan guides
- How Much Education Loan Can I Get to Study Abroad?
- Is a Co-Applicant Mandatory for an Education Loan?
- Education Loan Without a Co-Applicant for Abroad Studies
- Education Loan Interest Rates for Abroad Studies
- Education Loan Tax Benefit: Section 80E and Section 129
- Education Loan Moratorium Period Explained
- Margin Money in Education Loans: How Much You Pay
- Education Loan Documents List for Abroad Studies
- Education Loan Process for Abroad Studies
- All loan guides
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