An education loan helps students achieve their academic goals. However, students often struggle and face challenges at the time of repayment. Especially for students who are unable to secure high-paying jobs, the repayment becomes substantial. This is where the Reliance Arc Education Loan settlement can help students in repaying the loan amount.  

This initiative helps students struggling with education loan repayment. In addition, it also improves credit scores along with offering financial relief to students and families. In this blog, we will uncover everything about Reliance Arc Education Loan Settlement, its impact on education loans, and some tips on how to manage Loan debts.

An Overview of the Reliance Arc Education Loan Settlement

Reliance Arc - Reliance Asset Reconstruction Company(RARC) is a subsidiary of Reliance Capital Limited, registered with the Reserve Bank of India. This firm acquires and manages non-performing financial assets from banks and financial institutions.

RARC mainly works in the retail MSME and SME sectors and corporate business, handling loan profiles among various asset domains, including Education Loans, personal loans, vehicle loans, and mortgages.

Reliance Arc is intended for borrowers who already have outstanding Education Loans. It helps students to settle those loans following the favourable negotiations, which is nothing but the kind of agreement between Reliance Arc and the borrower. After the negotiation, the loan amount reduces, which is often less than the outstanding loan amount, under fair repayment terms.

Impact of Reliance Arc Education Loan Settlement on Borrowers

Below are the impacts of the Reliance Arc Education Loan on borrowers.

  • Instant loan settlement: The reliance Arc Education Loan offers immediate financial support. They do this by negotiating the repayment loan amounts at a lower amount along with more favourable terms. Thus, it reduces the burden on students and families and helps in managing finances effectively.
  • Enhances credit score: The credit score can be improved with loan settlement, though one cannot avoid the settlement credit on the report. It reflects as a responsible loan payer instead of a delay in payment or a defaulter. This indeed shows the repayment behaviour, which in turn helps improve the credit score.
  • Improves financial stability: With the education loan settlement, the earlier amount kept for loan repayment can be redirected to another important use. Thus strengthening the financial position and reducing stress.
  • Avoids legal actions: Usually, if the student fails to repay the loan, the lender has the right to proceed with legal action. But, with Reliance Arc Education loan settlement, students can avoid legal actions as the loan is being repaid.
  • Quick process: The process is very fast and enables you to close the loan account quickly.

Eligibility criteria for Reliance Arc Education Loan settlement

  • Existing loan account:  The student should have an existing loan account with a payment overdue.
  • Financial instability: Students must be able to demonstrate financial hardships and inability to repay the loan.
  • Document submission: Students must produce documents of identity proof, loan details, and income proof certificates to start the process.
  • RARC approval:  RARC settlements are primarily approved based on the financial situation of the student.

Tips for a successful Reliance Arc loan settlement

  1. Understanding financial position:  The student has to understand the financial position by evaluating the income and expenses to determine how much the student can repay. This builds trust and helps RARC consider the application.
  2. Keep relevant documents handy: keeping documents ready can make the process easy and save a lot of time in the settlement process.
  3. Communicate clearly: demonstrate your financial challenges clearly during the negotiations process with the RARC team to avoid future hassles.

Note: It is advised that students make informed choices when it comes to financial decisions, as it not only impacts students but the family as well.

Here are some tips to manage Student Loan Debts

In the reliance arc loan settlement, a huge amount is negotiated for settlement, which is usually less than the entire loan amount. This may help students reduce their debts and get some financial relief. However, it is important to keep some practical tips handy to avoid future financial complications.

  1. Choose the right education loan: Selecting the right education loan and lender* when applying for education loans can solve many future problems. Proper research and expert guidance always play a key role in avoiding such an overburdened financial crisis. *Contact us today and choose the right education loan
  2. Plan a budget to prioritize loans: One of the important tips for managing your student debt is to plan and create a practical budget. This budget helps you track your expenses and plan your loan repayment. Keep reviewing your repayment options with the lender to avail the best plan. Set up an automatic payment system to ensure you never run out of cash.
  3. Negotiate the repayment plan with the lender: It is always advisable for students to stay in touch with the lender in order to negotiate the repayment plan. Students can also research and explore options for refinancing their loans if possible.
  4. Research on interest rates: Do you know that even a single percentage point of interest rate can save lakhs of rupees for students and families? Yes. You heard that right. Students have to do a thorough research on interest rates and keep themselves updated with the changes in the interest rates of the education loans. This helps to negotiate with the lender and bring down the interest rate if possible.

Conclusion

In this blog, we have explored everything about the Reliance Arc Education Loan Settlement, how it benefits the students, including the eligibility to secure the same. We have also added some tips for students on how to avoid such a financial crisis by managing student loan debts effectively. However, as discussed, it is always advised for students to make informed choices while taking such financial decisions, while choosing the right lender and right loan can be a game changer to eliminate such complications.

Contact us today to get expert guidance. We at Wemakescholars have experienced and dedicated financial officers who can support you with the right loan choices depending on your profile and walk you through the entire loan process hassle-free.