To avoid the problem of education loan rejection, it is important to pay attention to some special things. Let us know what things you should take special care of...

If you want to take admission in a university or college and you want to do this study with the help of an education loan, then this news is for you. Actually, it is often seen that the candidate applying for an education loan suddenly gets the news that his loan has been rejected. During that time, the student has to compromise with his future.

But do you know what the reasons can be behind the rejection of an education loan? Let us tell you today how you can avoid this problem....

For what reasons does education loan get rejected?

Often students think that rejection is their fault, but the truth is that many times the policies of the bank also become the reason for this. First of all, let's talk about the documents. Many students submit incomplete documents or there is a discrepancy in the admission letter and fee structure. In such cases, the bank immediately stops the file. A big reason is also the credit history i.e. CIBIL score. If the student or his guarantor has taken a loan earlier and has not repaid it on time, or has delayed the EMI, then the bank's trust is shaken. A weak credit score directly affects the education loan.

Guarantor's profile

Sometimes courses and universities also become the reason for loan rejection. Banks give priority to those courses which have good value in the market and which have a higher chance of the student getting a job later. If the course is less popular or its placement rate is poor, then the bank considers it a risk. The guarantor's profile is also important. The bank wants that if for some reason the student is unable to repay the loan, then the guarantor should be financially capable. But if the guarantor's income is low or the job is not stable, then the bank rejects the application.

What to do if the loan is rejected repeatedly?

Students often get frustrated after getting rejection, but this does not mean that the doors are closed. The first step is to apply to different banks and NBFCs. Every institution has its own terms and conditions, so failure at one place does not mean failure everywhere. Apart from this, schemes of the government and various institutions can also be very helpful. Education loan can also be taken by taking advantage of the schemes run by SIDBI, NSDL or state governments.

If the income of the parents is limited, then any other capable relative can be made a co-applicant. This will give the bank confidence that the loan will be repaid. Another important thing is the CIBIL score. If you already have small loans, then repay them on time. Showing regularity in EMI indicates to the bank that you are a responsible borrower. Also, explain the value of your course and university to the bank properly. Show the bank officer the documents related to placement reports, college ranking and future prospects. This will increase their confidence.

Keep these things in mind to avoid loan rejection

Preparation for education loan is not limited to just collecting documents. Check every document thoroughly before applying. Tell the bank officer clearly about the ROI of the course and future opportunities. If the family income is low then it is very important to have a co-applicant. This gives the bank the security that repayment will be done somehow. Apart from this, mentioning scholarship or any other funding is also helpful.