Student loans are a big help for many Indian students dreaming of higher studies, especially abroad or in top colleges here. But rejections can spoil plans and cause stress. EduFi Solutions, your trusted partner in education finance, shares the top reasons why applications fail and simple ways to fix them. This guide uses easy steps to boost your approval chances.
Incomplete or Wrong Documents
Banks and NBFCs reject many applications due to missing papers like income proof, admission letters, or ID copies. Old mark sheets or unclear bank statements also cause issues.
To avoid this, prepare a full checklist early—passport, fee receipts, co-applicant salary slips, and collateral details if needed. EduFi Solutions helps scan and submit perfect documents fast.
Low Credit Score or No Score
A poor CIBIL score below 700 or no credit history scares lenders. Parents with bad scores as co-applicants face the same problem.
Build a basic score by using a secured card wisely. Choose guarantors with strong 750+ scores. Our team at EduFi Solutions checks scores free and suggests quick fixes.
Weak Academic Profile or Course Mismatch
Low marks in 12th or graduation, or applying for unapproved courses like short diplomas, lead to no. Lenders want clear study plans.
Pick recognised universities and show good grades. Attach a strong SOP explaining your course choice. EduFi Solutions matches your profile to best lenders for quick nods.
Insufficient Co-Applicant Income
Loans need family income proof—salaried jobs under 25k monthly or unstable business income get rejected. No steady earner hurts too.
Find a salaried relative with ITR proofs. Highlight family assets if income is low. We guide on strong co-applicant picks at EduFi Solutions.
High Loan Amount or No Collateral
Asking for full fees without security for big loans over 20 lakhs fails often. Lenders fear repayment risk.
Opt for partial collateral like FD or property. Start with smaller secured loans. EduFi Solutions negotiates lower margins and faster processing for safe approvals.
FAQs
- What is the minimum CIBIL score for student loans?
Most banks want 700+, but EduFi Solutions helps even with lower scores via alternate checks. - Can I apply without a co-applicant?
Rarely for big loans; family help is key. We find options for you. - How long does rejection take to fix?
1–2 weeks with right docs. EduFi speeds it up. - Do study abroad loans need more collateral?
Yes for high fees, but we cut it down smartly. - What if my course is not approved?
Share details; EduFi lists safe courses and lenders.
