Tips To Secure Education Loan With Low Credit Scores
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26 August, 2025
According to RBI data, the outstanding education loan portfolio in India stood at Rs 1.31 lakh crore in November 2024
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For students with poor credit history, the path is tougher but not impossible
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A score below 650 doesn't always mean rejection. However, traditional banks usually ask for either a financially strong co-applicant or collateral
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Students can strengthen their application by adding a co-applicant with a credit score above 680 or pledging collateral
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Financial experts highlight that many loan applications fail not because of eligibility, but due to errors in the process:
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Applying late: Last-minute submissions often lead to missing documents and delayed approvals
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No checklist: Students frequently forget essential documents like academic transcripts, admission letters, co-applicant's financial proofs, and detailed cost
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Such lapses can cause rejection or missed university fee deadlines
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The advice is clear: start the loan application process early, maintain a checklist, and ensure every document is in order
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With timely planning, both scholarships and loans can significantly ease the financial burden of studying abroad
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