Education Loan: Why is your education loan getting rejected again and again? Are you also making the same mistake?

Education Loan: Imagine you have been admitted to your dream university, have packed your bags, and now you are just waiting to get your education loan from the bank before leaving. But suddenly, you get the information that your loan has been rejected. The disappointment at that time is difficult to describe in words. Many times, due to the lack of approval of the education loan, hardworking students fall behind in their studies or have to compromise.

Rejection of an education loan is not a big deal. Every bank has its own rules. If there is any deficiency in your file, then the chances of rejection increase. But there is no need to panic. If you understand the reason for rejection, then the chances of getting a loan next time will increase. A large number of students and parents want to know why their education loan is getting rejected again and again. This happens due to a lack of documents, doubt on the value of the course, and a weak profile of the guarantor.

Why is the education loan getting rejected?
Rejection of an education loan is not always your fault. Many times, the bank's policy, your age, placement prospects of the course, and credit history also play important roles in this. Know why education loan gets rejected, what to do if they get rejected repeatedly, and what things you should keep in mind to get financial support for studies.

Reasons for rejection of the education loan

Incomplete or wrong documents

Poor CIBIL score or previous outstanding loan

Low market value of the course or university

Weak income profile of the co-applicant (guarantor)

Bank's internal policy and risk factor

What to do if the loan gets rejected repeatedly?

Apply to different banks and NBFCs.

Look for options from government schemes and institutions like SIDBI and NSDL.

Keep a strong guarantor or co-applicant.

Improve your CIBIL score.

Keep documents proving the value of the course and college with you.

How to avoid rejection of an education loan?

Submit the documents after checking them thoroughly.

Tell about the future of the course, placement, and ROI (Return on Investment).

If the income is low, take the help of a co-applicant.

Also share information about scholarship and partial funding.

Useful information for students

Check your CIBIL score before applying for an education loan.

Tell everything honestly to the bank officer.

If the loan is rejected, ask for a written reason.

Take the help of education loan portals or education loan agents.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.