Transfer Education Loan to another Bank
Simple answer to your Question is Yes.
Next question may be HOW and WHY.
Banks now a days, are desperately looking for Retail Advances due to increasing BAD LOANS (NPAs as per industry terms) in Corporate Segment, since Retail Loans (Loans given to Individuals) have a lesser chance of falling BAD and eventually if it does so, the risk is divided.
Your Education Loan running with a Nationalized Bank will be a nice opportunity to grab for a Corporate Giant like ICICI Bank.
The term that Industry use for such cases is called LOAN TAKEOVER.
You simply have to walk to an ICICI Bank branch and ask the Relationship Manager there to do the needful for your case. They will get your form filled and proceed further. Since this is a loan already sanctioned and disbursed by a Reputed Public Sector Bank (Believe me they have a great reputation in Industry and currently they are 4th largest PSU Bank of India, no matter how is your experience as a customer of a Particular Branch) ICICI Bank should not hesitate in TAKING OVER the same. There must be some TERMS and CONDITIONS like; it should have been paid as per the schedule with no overdues pending, it should be more that one year old and your current Credit Score should be decent.
Now, free advise, as we are used to it, is why do you want to do so..?
- You have secured a job and your company pays you salary in ICICI Bank.
- You availed the loan from a Branch near to your home and now you got a job somewhere far away and find it difficult to operate the same.
- You are not happy with the present Branch.
in those possible cases,
- you need not to move/shift your loan account in the same bank where you get the salary. Simply ask your Loan Branch Manager to provide you an ECS Form and submit the same duly filled. your Loan Bank wich launch an ECS (Electronic Clearing System) Mandate on your ICICI bank Branch and the EMI will automatically be deducted on a Fixed Date of your convenience, every month.
- Almost all Nationalized Banks and most reputed Private Banks are running on CBS so where you have an account does not indeed make any difference. Suppose you have a Canara Bank Loan Account, you may operate the same from Any Canara Bank Branch on the country.
- For the reason 3, apart from that, you can avail Internet Banking option and the same is as good for Loans as it is for Saving Accounts including your Salary Accounts. Further, if desperately needed, you can ask any Bigger Branch to get your loan account moved to there, instead of keeping it at the same branch where you opened initially.
PS, am giving you alternates to Shifting your loan account to other banks, because it is easy to Shift Loan Account to other Bank,
