Can I Change the University After Loan Sanction? | GyanDhan

Getting an education loan in India can be a painstaking task considering the long, complicated, and cumbersome process involved. Features and details of education loans become important to comprehend to successfully avail of the loan. It is a no-brainer that students must apply for more than one college abroad for higher studies to increase the chances of getting an admit.


This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/university-change-after-loan-sanction

please advice if I should cancel my education loan if I got admission to another university but the loan was for some other university??

Hi @shivani.nagpal

Instead of canceling your education loan, request the lender to change the name of the university to the one you want to attend.

As explained in the thread, the request process depends on the fee of the new university. If the fee is the same and you do not want to increase the loan amount, you only need to request the name change.

If the loan amount has increased, then there are further steps you need to follow.
Depending on the type of loan you have taken, you will have to provide additional security for the final amount you need.
For example, if you applied for a loan with collateral or security, the value of the collateral should be enough to cover the amount you require now. If the value does not cover the loan amount, you can pledge additional collateral to cover the loan amount.
If you have taken an unsecured education loan, the co-applicant income should be sufficient to cover the added liability.

If you still face any issue with the process, get in touch with GyanDhan and we will resolve it for you.
Hope this helps. All the best!

I have taken education loan 6months i continued in that school but now i want to change the school is it possible for the bank to change my school

Hi @Tilak_Eluri

You can change the university but it depends on the lender. In most cases, the change in university happens before the loan amount is disbursed. Since you have already used the loan amount for 6 months (one semester), it would be difficult to change the university. High possibility of rejection.
However, I would say, get in touch with GyanDhan before you dismiss the situation. We can find a solution for you.

Hi i am tilak
I am doing pilot training

@Tilak_Eluri

You can get in touch with GyanDhan through its website - GyanDhan
Alternatively, you can check your loan eligibility on our portal - GyanDhan > Loans > Check Loan Eligibility.

Hope this helps.

i took the loan from canara bank for 20 lakhs out of which 6 lakhs were disbursed…now i am changing the college whose entire fee is 6 lakhs…what should i do to get my loan transferreed to the new college

Hi @Manohar ,
If you want to transfer your education loan from Canara Bank to your new college, start by notifying Canara Bank about your change of college. You’ll need to provide them with the new college’s admission letter and fee structure. Since the new college’s fees are already covered by what has been disbursed, discuss with the bank if any adjustments to the loan terms are necessary. Make sure to update your loan agreement with any required documents to reflect the change in your educational institution. It’s important to ensure that the loan disbursement process aligns smoothly with the payment schedule at your new college, allowing you to focus on your studies without financial interruptions.

For any further assistance feel free to reach out.

so is there provisions by bank to allow the loan transfer facility. And are there any hidden charges by the bank

Banks typically allow you to transfer your education loan to a different college, provided you update them with the necessary documentation like a new admission letter and fee structure. It’s always a good idea to ask your bank for any potential charges related to updating or transferring your loan. Most banks are upfront about fees, but you should review your loan agreement to ensure there are no hidden costs.

You may use that loan for the university you are newly admitted into. Its not necessary to cancel the loan.

ohh really…so is there no need to inform the bank ?

Pulkit Sir …is there any way i can be assisted by your team in negotiating with my bank. I will be really grateful for that help

I took the loan from HDFC Credila Bank for 30 lakhs for Australian universities, but now I have a new offer letter for New Zealand’s universities, so how can I update my education loan? Is it possible?

@Manan_Patel : Yes, it is possible. I assume by “took loan” you mean the sanctioned loan. You just need to reach out to HDFC Credila and inform them about the change. They will review the eligibility of your new university in New Zealand. Depending on how the new university is ranked (better or worse compared to the Australian one), the terms of your loan may remain the same, improve, or become less favorable. It’s best to contact them directly for further guidance.

I visited the HDFC CREDILA office, but the officer told me that the offer letter can’t be updated if country change.

Hi @Manan_Patel : Typically they re sanction the loan with new terms. I have asked my team to call you and assist you on this!