Can I take two education loans from two different banks in India?


  • You might ask, whether I can get two education loans from two different banks in India?
  • Yes, you can, but for different courses, read this to know more!

Yes, you can get 2 education loans from 2 different banks in Indian but for different courses. As banks disburse the loan directly to the college or university and not in your savings account, the loan from 2 different banks for the same course is nothing but impossible. Banks while disbursing the loan checks the credit profile of the applicant. While checking the profile, they could easily see the loan you might have taken for the said course, thereby leading to the rejection of the second loan application for the same course.

What you can do though is a balance transfer from your existing lender to the new lender if the latter offers you the facility at a lower rate of interest by the time you will be paying the loan. This will help reduce your EMI and interest payments over time. But the existing lender won’t allow balance transfer before specific periods of repayment. Plus, you could be levied a balance transfer fee. So, factor in all and decide whether to go for a balance transfer. Meanwhile, you can check the benefits of education loan balance transfer in this post.

How Much Can You Save on a Balance Transfer of Education Loan?

Suppose, the existing education loan runs at an interest rate of 13.00% on your borrowed amount. But if you get a balance transfer offer from another lender at a lower rate of 13%, how much can you save from the transaction?

Repayment ScheduleDetails
Loan AmountINR 15 lakh
Current Interest13% per annum
Tenure15 years
EMI @ 13%INR 18,979
Interest Payment Likely Over 15 YearsINR 19,16,154
Interest Paid Over 5 YearsINR 9,09,801
Outstanding Balance after 5 yearsINR 12,71,082
New EMI after transfer @ 10%INR 16,797
Interest Payment After TransferINR 7,44,611
Interest Paid + New Interest over 10 yearsINR 16,54,412 (9,09,801+ 7,44,611)
Savings on EMIINR 2,182
Savings on InterestINR 2,61,742 (19,16,154-16,54,412)
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List of Banks Where You Should Look to Transfer Your Education Loan

If you don’t get the education loan from any of these banks, you can at least get the balance transferred to them. These lenders will do a credit appraisal to see how you have been paying your EMIs. They would like to see a timely payment track. If that is ensured, you will most likely have a good credit score of 750 and above.

BankInterest RateLoan Quantum (INR)Transfer fee
State Bank of India (SBI)6.90% - 9.30%10 lakh to 1.5 CroreNIL
ICICI Bank11.25% - 11.75%20 lakh to 1 CroreNIL
Punjab National Bank (PNB)6.90% - 9.55%Need BasedNIL
HDFC Bank9.25% - 13.68%10 lakh to 40 lakh1% of the loan amount
Canara Bank7.40% - 9.40%Need BasedNIL
Bank of Baroda6.85% - 9.95%Up to 80 lakhNIL
Bank of Maharashtra7.05% - 8.90%Up to 20 lakhAs per bank rules
Bank of India9.05% - 9.85%10 lakh to 30 lakhNIL

Security on the Loan Transfer

The borrower will need to submit the mortgaged property, FD, or insurance to the new bank after the loan closure from the bank. Because if your loan is above INR 7.5 lakh bank requires a security deposit. And the collateral is necessary to provide to the bank to approve the loan. The list of documents required for the loan transfer is mentioned below.

  • KYC proof such as Aadhar, Voter ID card, passport, etc.
  • Academic details like 10+2 mark sheet, admission letter and fee structure for the course
  • If the student course is completed, provide the copy of the result, mark sheet or certificate
  • Bank statement for the last 6 months
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