Student loan refinance has become a go to option for many students who feel overwhelmed by their student loan mid-way through their repayment process.
Wondering what student loan refinance is?
Well, it’s a simple process wherein your transfer your outstanding student loan balance to a new lender in exchange for better customer services, lowered interest rates or some other benefits.
There are numerous reasons why you could opt to transfer your loan to a new lender and this article will highlight some of the main reasons why you could consider this attractive option.
1. Lowered interest rates:
One of the main reasons most students opt for Student Loan In India refinance is to obtain lowered interest rates. If you see another lender providing a lowered rate of interest that your current lender, you can opt to refinance your loan with that lender and enjoy lowered interest rates.
However, you must keep in mind that switching lenders do entail a charge, so make sure that the savings of the lowered interest outweigh this switching cost.
2. Lower monthly payments:
If your EMIs are getting too hard to handle, then student loan refinance can bring you some respite. In addition to lower interest rates that will anyway reduce your monthly payments, some lenders will offer to increase the tenure of your loan by another 5 or 10 years.
What this means is that, if you have a tenure of 10 years and you are 5 years through the repayment process, you can get an additional 5 years to repay the loan. And longer tenures automatically translate into smaller EMI amounts.
3. Flexible study loan repayment options:
You can even opt for student loan refinance if you find another lender offering flexible or customized repayment options that are better suited to your needs and requirements. These repayment options are, or can be, customized to complement your source of income to make it easier to repay the loan and complete the repayment on terms you are more comfortable with.
4. Study loans top-ups:
Sometimes you might find yourself in need of more funds mid-way through your education. In such cases you can get your hands on additional funding by opting for an education loan refinance.
There are numerous lenders that will offer top-ups on your existing loan when you transfer your outstanding balance to them. You can use these top-up amounts to cover all your education-related expenses without burdening your parents or liquidating any of your assets. It takes care of any funding needs so you can focus more on your education.
5. Poor customer services:
This is another reason to consider refinancing your loan. If you are not satisfied with the level of customer services or feel like you are not getting the attention you deserve, you can look for more customer-friendly lenders and refinance your education loan with them.
If found yourself nodding at any of the above reasons, then a Student Loan In India refinance is for you. Just look for the right lender and get your loan moved; it’s really that simple and you could benefit big time!
Good luck and all the best!