It is not uncommon for student’s to opt for education loan to finance higher studies. However, there are many instances when applications for education loan are rejected. Read on to find out the reasons that can lead to the rejection of such loan applications.

  • First and foremost, those with a poor credit history will find it difficult to get their applications for education loan approved by lenders.
  • Education loan applications are also rejected in cases when the amount applied for is disproportionate to the applicant’s income or in cases when the applicants have higher borrowing risks due to other concurrent loans and are not able to provide collateral as required by the lender.
  •  If the lender is not satisfied with the applicant’s past academic track record, course he has selected, his employment prospects, post-placement repayment capacity, type and value of the collateral offered, reputation/rating of the concerned educational institution and income and credit profile of parents/guardian who might have been the co-borrower or guarantor.
  • The application for an education loan can also be rejected on technical grounds. Such instances happen when there is an error in the application or the educational institution is not accredited to UGC or AICTE or the course applied for is not eligible for financing under the terms and conditions of the lender.

If one applies for an education loan keeping the above points in mind then there cannot be an iota of doubt in the fact that his application would never be rejected.

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