Do education loans get rejected?

Your loan gets rejected if you provide the wrong collateral such as agricultural land which isn’t acceptable by the lender for an education loan. The bank will accept house, fixed deposit, insurance, or any tangible collateral which is on the borrower’s name.

Can banks deny student loans?

While there’s no minimum credit score requirement, the Department of Education may deny your application if it finds significant negative items in your credit history.

Is CIBIL score required for education loan?

One of the most prominent factors considered by NBFCs and private banks before approving any education loan application is an applicant and their co-applicants CIBIL score. Most of the NBFCs which function in India require loan applicants as well as their co-applicants to have a CIBIL score to be above 700.

Why am I not getting approved for a student loan?

You could be denied student loans if you’re trying to borrow too much, your income is low, or you otherwise appear as a high risk to lenders. If you’re denied for student loans, try for federal loans, apply with a cosigner, or look for a bad credit loan.

What to do if you can’t get a loan?

One should always try their own bank and branch before looking elsewhere, but if one bank does not work out, you can try another one. Regional co-operative and rural banks sometimes have a less stringent criteria and it may help you to try a loan from one such bank.

Can a bank deny an education loan?

While applying for a loan, you do not have admission letter from the college. Although not every lending institution will take into consideration each and every above mentioned and reject education loan. So always ask your bank to provide reason for denial, if it all you face it.

How to apply for education loan without collateral?

The loan procedure for collateral-free loans is simple as compared to collateral-based education loans. Here are the steps described in brief, involved for availing an education loan without collateral: Fill the online application form WeMakeScholars provides the list of documents and connects you with the bank’s nearest and fastest branch.

What are the risks associated with taking educational loan?

Because of this more and more students take help of educational loan to fulfil their dream. But at the same time, to a bank, there is a risk associated with it because it is not possible to keep a track of students after they complete their studies especially those who default on the loan which increases the non-performing assets of the banks.