Student loan refinancing allows individuals to switch to another lender to help them pay their existing student loans. The new or refinanced loan generally offers lower interest or better repayment terms. Almost every education loan provider offers refinancing options on loans for students.
If you’re looking to refinance your education loan, you need to follow these steps:
Step 1: Request your current lender for a foreclosure form.
Step 2: Approach a new lender to refinance your existing loan for education.
Step 3: Allow the new lender time to complete the paperwork and approve the request.
Step 4: Wait for the new lender to provide you with a cheque for your old lender to clear the outstanding amount.
There’s no single best time to refinance your education loan. You can start your education loan refinance journey while you’re studying or even after your complete the course. You should check each lender’s criteria for refinancing loans before applying.
Most people refinance student loans to get a better education loan rate of interest. While lenders often do not have a minimum credit score requirement, a CIBIL score of 650 or more allows you to enjoy lower interest rates when you opt for an education loan refinance.
You are eligible for education loan refinance if you have an existing education loan for higher studies abroad or in India. You can even opt for refinancing if you’ve completed your degree and started repaying your loan for education. Avanse also provides refinancing options for Masters Degrees.
If you want to refinance student loans for education abroad or in India, you need to provide the following documents:
- Loan application form
- Passport photographs of the person applying for student loan refinancing
- KYC documents of the applicant and co-applicant
- Identity proof
- Residence proof
- Bank account statements of the student or co-applicant or guarantor for the previous six months
- Documents provided by the previous lender
Some lenders may also ask for IT returns and proof of income documents.
Avanse offers student loan refinancing options for all accredited courses in India and abroad. If you take a loan for education for any accredited course, Avanse will help you with education loan refinance options.
With Avanse as your education loan refinance partner, you benefit from:
- Student-friendly interest rates
- Affordable EMIs
- A flexible repayment schedule for your education loan with Avanse
- Completely transparent process
When you choose to refinance student loans with Avanse, you enjoy a completely transparent process. Avanse also provides top-ups on existing loans for students, ensuring you have the funds required to cover all your costs. Additionally, we accept remittance payments, allowing you to repay your education loan from anywhere in the world.
No, education loan refinance will not impact your credit score. When you opt to refinance your existing loan, you can alter your payment plan and lower your monthly payments. With refinance, you could lower your monthly EMI amounts and enjoy a stress-free repayment.
People choose student loan refinancing to enjoy:
- Flexible repayment options for their loan for students
- Better returns on their investment
- Lower interest rates
Yes, opting for an education loan refinance can help you save money in the long run. Refinancing your education loan could provide a better education loan rate of interest, which saves you money.
