How to Convert an NPA Education Loan Account to Normal | 2025 | GyanDhan

by williamair1

Many students who study abroad or study in prestigious universities in India have to take education loans to finance their education. However, there are circumstances and challenges such as the sudden demise of an earning family member, unexpected unemployment or underemployment can make repayment very difficult. When such repayments are overdue for more than 90 days, then the loan account is considered a Non-Performing Asset (NPA). An NPA account in bank does not generate income and this label can severely affect the applicant’s and co-applicant’s credit rating. Once the credit rating goes below a certain limit, then getting financial aid like credit or loan becomes next to impossible.

This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/how-to-convert-npa-account-to-a-normal-account