The world woke up to shocking news of Russia invading Ukraine on 23rd February. The result was increasing tensions between the countries resulting in countries evacuating their respective citizens from the war affected zone. India also evacuated all their citizens majority of them being students.
Ukraine is a major destination for MBBS studies and many other programs. The war means them discontinuing their education at least till tensions ease. In this article we cover what can be done by students who have taken education loans for their studies abroad.
If you are someone who is already servicing an education loan and are now finding it difficult to repay it, the first thing you should do is to contact your lender. And ask them if your loan can be restructured. In August 2020, the RBI (Reserve Bank of India) had allowed restructuring of loans without marking them as NPAs (Non-Performing Assets). The RBI allowed restructuring of loans without marking them as NPAs in the wake of COVID 19 to help people and businesses cope with the impact of COVID during the first and second waves.
This may not be easy in the current circumstances. Go for this only if you are getting a lower interest rate than what you are paying at present. The lower EMIs may give you some relief. Restructuring for loan amounts greater than 10L does make a good difference in the loan amount repayment.
3. Repaying the Simple Interest
You can reduce the risk of interest getting added back to your principal education loan by repaying only the interest component.
However, if unfortunately, no sight of peace is in relief, then you should definitely try to close the education loan ASAP post a one-time closure negotiation request with your respective banks. Banks do prefer a one-time settlement of the bank loan over the risk of a default and the loan going into the NPA book. We do hope that this measure will not be required. Our leaders will find a peaceful way of concluding the ongoing conflict. Our prayers are with the victims of the crisis unfolding in Ukraine 🙏
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