How to Cancel WB Student Credit Card Loan: The West Bengal Student Credit Card (WBSCC) Scheme is essentially a loan scheme that enables you to receive financial support to help pay for your higher studies. Under the scheme, you can receive loan amounts of up to INR 10 lakh at low interest rates and flexible repayment schedules. While this scheme enables you to pursue your dreams without being weighed down by cost concerns, there may be circumstances for a small number of borrowers when they would be interested in cancelling their WB Student Credit Card Loan known as when they can arrange for further funding sources, drop out of their course or simply cannot pay the loan back. You must first check the status of your WBSCC loan before applying for formal cancellation. Next, you are required to notify your institution about the cancellation, communicate with the financial institution that approved the loan, and finally submit a formal Loan Cancellation Application.

It is very important to understand the process of cancellation of WBSCC loans so as to not put yourself in any financial and/or legal hassle. In this article, we will discuss the steps to follow to cancel a student credit card loan, what eligibility criteria are needed to cancel a loan, considerations to make before cancellation, and options for you having trouble repaying your loans.

Also Read: West Bengal Student Credit Card Scheme vs Other State Student Loan Schemes

Procedure for Cancelling WB Student Credit Card Loan

If you wish to cancel the WBSCC loan, you are required to provide relevant information including your loan application number, personal identification details, and reasons for cancellation, and then complete and sign a formal request for loan cancellation. Follow the steps mentioned below to cancel the WB Student Credit Card Loan:

Verify The Status of Your Loan

Before submitting a request for cancellation, check the status of your loan. If the loan has been approved but not disbursed yet your request for cancellation should go smoothly. If a portion or full amounts are disbursed, there are added steps to cancel the loan.

Notify Your Institution

If the loan amount has been disbursed directly to your institution for tuition fees or expenses, notify them that you are cancelling the loan. In some instances, there may be a requirement for the disbursed amount to be returned to the select institution before your bank can approve the loan cancellation.

Communicate with Lender

Go to the bank or permitted financial institution that approved the loan and submit the formal request for loan cancellation. Information you will want to provide includes Loan account number, reason for loan cancellation, supporting documents (document of scholarship approval, a confirmation of alternate financial aid programmes)  The bank will provide you guidelines and next steps for cancellation.

Submit a Loan Cancellation Application

To cancel the loan, you should write an official application addressed to the District Registration and Counselling Center (DRCC) and West Bengal Higher Education Department. You must indicate your intention to cancel the loan, reasons for cancelling the loan, and loan reference information. You should submit the application along with any necessary documents, such as the loan sanction letter, institutional approval letter (if any), and proof that financing from another source, such as any funding scholarships. If the loan amount has been disbursed to your college or university, you may be asked to have the institution return the loan amount to the lending bank before your cancellation can be processed.

Pay Back the Amount Disbursed (If Required)

If the bank disbursed the loan amount to your college or university, it is possible you will be asked to have the institution return the loan amount to your lending bank before any cancellation can be processed.

Secure a Final Cancellation Confirmation

Once the cancellation is processed, the bank and/or the governmental body will issue confirmation of the cancellation.

Details Required to Cancel WB Student Credit Card Loan

• Basic personal details like Full Name (same as the name provided during loan application), Application ID or Registration Number of the candidate, Student ID / Enrollment Number, Date of Birth, and Contact Number & Email ID
• Loan details like Sanctioned Loan Amount (if applicable), Name of the Bank & Branch that has lent the loan, Date of Application or Sanction of the WBSCC Loan, along with stating a brief and honest reason for cancellation
• Letter of cancellation duly signed by the student
• Proof of college discontinuation (if applicable)
• Proof of alternate funding that include scholarship letter, other financial aids, etc.
• Copy of Aadhaar Card and Pan Card
• Copy of the WB Student Credit Card (if issued)
• ID Proof of Parent/Guardian (if co-borrower involved)

Also Read: Benefits of the West Bengal Student Credit Card

When to Cancel the WB Student Credit Card Loan?

If you are unable to repay your WBSCC loan, you can seek refuge in the Moratorium period that lasts one year after the course completion or till you find employment. During this time, you are not required to repay the loan. However, if you at all wish to cancel the WBSCC loan, you must do so in the following cases:

• You must cancel the WB Student Credit Card Loan when you are no longer pursuing the course you applied the loan for. Since you will be dropping out or discontinuing the course, or taking a break, cancellation of the loan becomes important as the funds will no longer be needed for education.
• If you receive alternative funding in the form of a scholarship, grant, or financial aid that would cover your tuition fees, expenses for purchasing books, supplies, and sometimes living expenses, you must discontinue the WB Student Credit Card Loan. Unlike loans, you are not required to repay the amount in case of scholarships.
• If the approval or disbursement of WB Student Credit Card Loan is excessively delayed, or the financial assistance provided is insufficient, you must opt for cancellation of the loan to be able to explore other loan options. If the amount sanctioned is less, you must try to depend on scholarships to cover your tuition fees, hostel charges, books, and exam fees.
• A situation may arise in which you may switch to a different college or course after withdrawing from the programme you have applied the WB Student Credit Card loan for. If the new institute or course is not covered or recognized under the scheme, you must cancel the loan since it will not longer be applicable. Also, if you want to study abroad and opt for international education, the loan might not be valid and needs to be cancelled.
• After the loan has been approved, you may find the repayment terms involving interest, tenure, co-borrower obligations unfavourable and difficult to handle. You must submit a loan cancellation application in that case.
• If you have made mistakes while filling out the WBSCC loan application form like mentioning wrong course of college name, or uploaded documents or application info that has errors, you must request for cancellation of the loan and reapply correctly.
• Since the WBSCC loan must be repaid after completing the course, it may cause a financial burden on a student if his/her family situation changes—like job loss or sudden financial stress. In that case, it is a safer option to not undertake a loan burden and rely on a scholarship that offers free financial assistance.

Important Considerations Before Cancelling WB Student Credit Card Loan

Prior to making a decision to cancel a loan, students should consider the following:

• Loss of Tax Benefits: If you cancel your loan, you may not be able to take advantage of tax relief benefits under Section - 80E of the Income Tax Act.
• Reapplying for the Loan May be Difficult: If you cancel the loan and decide later you want to apply for it again, you may encounter challenges getting the approval, especially with any changes in government policy.
• Credit Score Impact: If you do not complete the cancellation correctly, then excuse the outstanding amount, this will be reported to the credit agencies, which will affect you to get loans in the future.
• Partial Cancellation Options: If you do not need the whole WBSCC loan amount, you may consider just cancelling a lower amount rather than the entire loan.

What After Cancelling the WB Student Credit Card Loan?

You may opt for scholarships after cancelling the WB Student Credit Card Loan since the sanctioned amount does not need to be repaid by you. Scholarships cover tuition fees, expenses to buy books, hostel fees, living expenses, and travel costs benefiting students from economically weaker backgrounds by exempting them from the compulsion to repay the loan amount. However, you must have secured at least 60-65% in aggregate in your last qualifying examination to become eligible for the same. Financial assistance ranging from INR 750 to INR 3,000 per month will be provided to fund UG and PG programmes.

The West Bengal Student Credit Card loan is a beneficial scheme developed to assist students with their pursuit of educational goals. However, in instances where you are done with the loan, it can be suspended, pending the guidelines, by following the applicable process approvals from the bank, institution, and government authorities. You can simply cancel the WBSCC loan and avoid a future payment situation. Again, please consider looking at other options before considering termination of a loan, such as educational loan assistance or applying for loan payback with a lower withdrawal amount. This will ensure you have analyzed the costs/benefits considering your greatest benefit.

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