By Admin 
If you want to take admission in a university or college and you want to study with the help of education loan, then this news is for you. Actually, it is seen many times that the candidate who applied for education loan suddenly comes that his loan has been rejected. During that time, the student has to compromise as his future.
But do you know what can be the reasons behind the reject of education loan? Let us tell you today how you can avoid this problem ….
What reasons are rejected education loans?
Often students think that rejections are their fault, but the truth is that many times bank policies also cause it. First of all, let’s talk about documents. Many students submit incomplete documents or there is a disturbance in the admission letter and fee structure. In such cases, the bank immediately stops the file. A big reason is Credit History i.e. CIBIL score. If the student or their guarantor has taken a loan before and has not repaid it on time, or the EMI is delayed, then the trust of the bank is shaken. The weak credit score directly affects the education loan.
Guarantor profile
Sometimes courses and universities also become the reason for loan reject. Banks give priority to the courses that have a good value in the market and which is more likely to get the job of the student. If the course is less popular or its placement rate is weak then banks consider it to be risk. The profile of the guarantor is also important. The bank wants that if the students are unable to repay the loan for some reason, 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 again and again?
Students often get frustrated after getting the rejection, but this does not mean that the roads are closed. The first step is to apply in different banks and NBFCs. Every institution has its own conditions, so failure does not mean that there will be failure everywhere. Apart from this, schemes of government and various institutions can also be very helpful. Education loan can also be taken by taking advantage of the schemes being run by SIDBI, NSDL or State Governments.
If the income of parents is limited then another competent relative can be made co-applicant. This will give the bank confident that the loan will be repaid. Another important thing is CIBIL score. If there are small loans in advance, then pay them on time. By showing regularity in EMI, the bank indicates that you are responsible borrower. Also explain your course and the value bank of the university well. Show documents related to placement reports, college ranking and future possibilities to the bank officer. This will increase trust in their mind.
Keep this in mind to avoid loan rejections
Preparations for education loan are not limited to raising papers. Check every document thoroughly before applying. Explain the course about the ROI of the course and further occasions to the bank officer. If the income of the family is low then it is very important to keep co-applicants. This gives the bank protection that the repayment will be in some way or the other. Apart from this, it is also helpful to mention scholarship or any other funding.
Also read: Irfan Pathan or Yusuf Pathan … Who is more educated among the two brothers?
Education loan information:
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