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Abroad Education Loans after Student Visa Rejection: A Detailed Insight

The dream of studying abroad is one that many Indian students cherish. It's a journey filled with Excitement, Opportunities, and the Promise of a Brighter Future. When it comes to the process of studying abroad, there are numerous steps to fulfil and documentation to complete. Among them, one of the most essential steps is obtaining a student visa, which can sometimes be a hurdle.

If your student visa gets rejected after you've already secured an education loan, it can be a challenging and stressful situation. But don't worry; you're not alone, and there are solutions available and that is what our latest article is about.

We aim to guide you through the next steps you should take if you find yourself facing this predicament. Let's begin by understanding the common reasons behind student visa rejections and then discuss how to manage your secured or unsecured education loan for abroad studies after rejection.

Common Reasons for Student Visa Rejections

Some of the common reasons for Student Visa rejections at the leading study destinations are listed below:

  • Missing or Incomplete Documentation

  • Insufficient Financial Evidence.

  • Lack of Genuine Intentions

  • Poor Academic Records or Discrepancies in Academic History

  • Inadequate English Language Proficiency Scores

  • Previous Visa Violations or Rules

  • Suspicious University or Course Selection

  • Health Issues

  • Passport Issues

  • Criminal Record or History

Considering that you now know the common reasons for loan rejections, let’s discuss their probable solutions to overcome this situation.

What to do with the Education Loan if Student Visa gets Rejected?

If you find yourself in any of the following situations, then fret not as Élan Expert Loan Advisors have listed their solutions as well.

  • Situation 1 – Applying for Student Visa again Immediately after Rejection

    Solution by Élan Expert Loan Advisors: If your Student Visa gets approved within six months of the Overseas Education Loan sanction and all the details remain unchanged, then you can proceed without modifying the loan sanction letter as the loan sanction letter is valid for 6 months.

    Keep your spirits high and carefully prepare your reapplication to address the reasons for the initial rejection. Your dream is still within reach.

  • Situation 2 – Changes in the Loan Sanction Details

    Solution by Élan Expert Loan Advisors: If there are changes such as a different University, Deferred Intake, or Changes in the Cost of Study, then you must inform the Bank or your Financial Lender. The loan sanction letter will need to be updated to reflect these changes. It's essential to communicate openly with your Lender to ensure a smooth transition.

    In this situation, the previous loan application will be cancelled, and the student will have to start the loan application process all over again. This includes registering on the Vidhya Lakshmi Portal, filling out the loan application form, getting the Title Verification Report again as it is valid only for 3 months and the Interim Search Report from the same Lawyer. Additionally, the applicant will have to pay the Lawyer and Loan Processing fees again.

  • Situation 3 – Applying to a Different Country & University

    Solution by Élan Expert Loan Advisors: If you decide to change your study destination entirely due to visa rejection, then you will need to cancel your current education loan and apply for a new one. This might seem like a setback, but it could also be a new beginning.

    Make sure your new Visa and Loan application meet the requirements of your new study destination. Reapply immediately as Government Banks education loan for study abroad takes nearly 20-25 working days for loan processing.

  • Situation 4 – Requesting Deferment Period because of Changes in Academic Intake

    Solution by Élan Expert Loan Advisors: If you miss your academic intake start date due to visa delays, you can request a deferment period from the Bank. This will involve modifying the loan agreement to extend the period before the loan disbursement.

    If you have taken a pre-visa loan disbursement, then you can request the bank to freeze your loan account till you get your Student Visa again. Keep in mind that you might need to pay interest that accrues during this deferment period.

  • Situation 5 – Loan Cancellation due to Change in Plans to Study Abroad

    Solution by Élan Expert Loan Advisors: If you decide not to pursue studying abroad after facing Student Visa rejection, then you must quickly inform your loan provider. Request them to stop the loan disbursement process immediately.

    While this decision is tough, it’s important to communicate swiftly to avoid unnecessary financial obligations. Also, in this case of education loan cancellation, the loan processing fee won't be refunded.

Applying for Overseas Education Loans with Team Élan

Understanding the complexities of Overseas Education Loans and Visa Processes can be challenging, but you're not alone. Team Élan is dedicated to assisting Study Abroad Aspirants at every step, ensuring a smooth transition even if such obstacles arise. Our Expert Overseas Education Loan Advisors are highly qualified to guide you through the entire process, including Loan Sanctions, Modifications, or Cancellations.

Connect with Élan Overseas Education Loan today to make your dream of studying abroad a reality, irrespective of these hurdles. We provide the best options for education loan for students to study abroad.

We're here to support you every step of the way because we believe in your dreams as much as you do!


  • Can I Reapply for a Student Visa after Rejection?

    Yes, you can reapply for a student visa after addressing the reasons for the initial rejection. Ensure all documentation and requirements are thoroughly met before reapplying. It’s also beneficial to seek advice from a Visa consultant to strengthen your application.

  • Will Reapplying for a Visa affect my Education Loan?

    If reapplying does not alter any loan details, the original sanction letter remains valid. If there are changes, inform your bank to update the loan details accordingly.

  • How long can I Defer my Education Loan?

    The deferment period varies by lender. It can range from a few months to a year. Check with your loan provider for specific details and if there are any associated costs.

  • 4. What if I choose a Different Course in the same University after Visa Rejection?

    Inform your loan provider of the course change. If the cost and duration differ significantly, then the loan terms will have to be adjusted.

  • Can I Transfer my Education Loan to a Different Bank if I Face Visa Rejection?

    Transferring an education loan between banks is possible in certain cases but involves a detailed process. If the disbursement is not done, then the student can change the bank, but Processing Fees will not be refunded by the previous bank.

    If it was a Pre-visa loan disbursement, then a loan transfer is not possible. But if the student still wishes to transfer then the applicant has to repay the pre-visa disbursement amount to the bank which is paid to the University and then the bank will hand over the No Due Certificate and closure statement. After this, the student can apply to a new bank. So, it's important to weigh the pros and cons of such a transfer.


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