Overseas Education Loans: What to do if your Student Visa is Rejected?

Let us discuss the way forward in each case

Students who re-apply for a student visa to study in the same country, in the same University, and the same program with a study abroad education loan.

Indian public sector banks have a clause in their secured education loan wherein a student/borrower can hold on to the sanction letter till six months of loan approval. This means that the first loan disbursement can wait till six months post loan sanction. In the current Covid-19 pandemic situation, wherein foreign countries are holding back on student visa approval, private banks and NBFCs also have extended the disbursal time to one year in case of sanctioned unsecured education loans.

Keeping in mind these rules, the road ahead for students who re-apply to the same country, the same university, and the same program is simple and straight-forward if they are re-applying within six months of their first student visa rejection. There is no need for them to inform their lenders and they can proceed with the reapplication of the student visa with the same education loan sanction letter.

Students who re-apply for a student visa to a different country and program with a study abroad loan

To be on the safer side, students who wish for higher studies abroad apply to multiple universities and may have more than one offer letter from different Universities. If you too are such a student and your student visa has been rejected and you plan to re-apply for a student visa to another country in a different University and program; then the process is different for you. You will need to inform your lender about this change in the decision and will have to request them to change the name of the country/university/program in the education loan sanction letter. Once the lender makes the requisite changes in the offer letter, you can then re-apply for the student visa.

Students who shelf their study abroad plans after taking an education loan

The Covid-19 pandemic has changed the priorities of a lot of people and a few students might be relooking at their study abroad plan in the immediate future. If you too are one such student whose student visa was rejected and you have now decided not to go ahead with your study abroad plan, then you need to inform your lender of this decision as soon as possible. If there was any disbursement made by your lender, then you have to return that amount to the lender.

Even though thousands of Indian students dream of a foreign degree, going abroad for higher studies is no cakewalk and the road is filled with numerous roadblocks. Getting a student visa is one of many roadblocks that you have to cross and if you do want to make any mistakes and get your student visa rejected, then you can get in touch with GyanDhan and take Admission counseling. The admission counseling not only includes University shortlisting and admission but also post admit assistance as well as visa guidance.