Why can bank stop education loan for backlogged students?
Can a bank withhold a sanctioned student loan if the student has backlogs in previous semesters?
1 Answer
Only verified advocates can give an answer Sign In
Advocate By LEAD INDIA
Answered: 16 Apr 2025
Yes, banks can withhold further disbursement if a student fails in multiple subjects. It signals poor academic progress, which may impact loan repayment. The loan resumes if backlogs are cleared and studies continue. Review the bank’s loan agreement to understand their rules. For further legal assistance contact us on our helpline number.
Related Questions
24x7 Help
If we fall short of your expectation in any way, let us know
Payment Trust
All refunds come with no questions asked guarantee
