There is a large number of Indian students pursuing higher education abroad. The reason is that it is easier for Indian students to study abroad than before. But it has become more expensive than before. Obtaining student loans has also become increasingly difficult due to increased academic competition among students. However, NBFCs accept 84.8% of student loans. In this case, there may be many reasons for rejecting an education loan.
Your academic performance will also be a factor in denying your child’s loan application. Students with gaps in grades, term suspensions or missed internal exams still cannot get loans. Because the bank is concerned about how the student will repay the loan after graduation. Therefore, a student’s good academic performance is a positive factor for obtaining an education loan.
Factors Affecting Loan Application Approval
Choosing a Good College and University
The university you attend has a big impact on your chances of getting a loan. From the bank’s point of view, students who apply for loans at Harvard are better off than students who apply for loans at state universities. As well as these large institutions, banks also look at university rankings, such as the annual QS rankings. Likewise, students who pass STEM courses there are favored for their higher loan repayment abilities. Banks often offer easy loans to students pursuing undergraduate, graduate, doctoral, and certificate programs.
Like any other type of loan or loan application, the bank or NBFC will assess your creditworthiness for the loan. A CIBIL score of 600 or lower may adversely affect your loan application. For international students, the loan amount can be increased by contracting with others.
Which country do you want to study abroad?
The country you choose to study in will affect the terms of your loan application. If you want to get a loan to study in a high-level country like the US, UK or Australia, you can easily get a loan compared to countries like Mexico, Japan or China. Because stable and developed western countries are considered to have good employment and development opportunities.
Proper file management
For student loans, students, parents, schools, colleges, and other institutions need to have all the necessary documentation ready. Sometimes it’s hard to keep everything from IDs to credit history in order. Files are often lost due to this. Therefore, all documents should be kept in one safe place to simplify the loan application process.