If I close my current education loan of around 3.3 lakhs, will I be eligible to get a loan for masters for a Master's?
Yes, closing your existing loan of around 3.3 lakhs improves your eligibility, since it drops your fixed obligation to income ratio to zero. It is not strictly mandatory, since lenders often approve a second education loan even with an active undergraduate loan, given a strong co-applicant income.
Closing your existing loan of around 3.3 lakhs genuinely strengthens your case for a master's loan. However, it is not the only way to qualify, since lenders regularly approve second education loans even with an active balance still on record.
What Lenders Actually Check
| Factor | Why It Matters For Your Application |
|---|---|
| Fixed Obligation to Income Ratio (FOIR) | Closing your 3.3 lakh loan drops this to zero, boosting your or your co-applicant's borrowing capacity |
| Credit score (CIBIL) | A clean closure with a "Loan Closed" status and No Objection Certificate signals a strong repayment history |
| Top-up or consolidation option | Some lenders let you fold your existing balance into the new master's loan instead of paying it off upfront |
What To Prepare Before You Apply
- Decide whether your master's will be within India or abroad, since this affects the loan amount and documentation lenders expect
- Get a clear total cost estimate for your target program, including tuition and living expenses
- Line up a co-applicant, typically a parent or guardian with a stable income, to back the application
My Advice
If you can comfortably close the 3.3 lakh loan now, do it and get the No Objection Certificate in writing before you apply for your master's loan, since a clean closure noticeably speeds up underwriting. If closing it fully is not possible, ask your lender directly about a top-up or consolidation option instead of assuming you are ineligible.
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