Financial Lenders have become quite strict and extremely vigilant with the sanctioning of an overseas education loan due to the increasing number of loan defaulters. According to the International Bar Association, the non-performing assets in an overseas education loan category was around 9% by the end of the year which is suspected to increase in the upcoming years. Over lakhs of Indian students apply for the student loans for studying abroad each year, but only a few manage to get the loan sanctioned and receive the funding. A research has shown that, the proportion of applicants rejected education loan application is higher than those who has successfully obtained the same. Many of the times, applicants are not even aware about the reasons behind an overseas education loan rejection. Let us take a closer look at the factors that lead to an overseas education loan rejection. Read on!
5 Reasons Leading to Education Loan Rejection:
Students having poor academic scores or loosing out on a year due to repeated failure in certain subjects can lead to the discontinuation of the program. Secondly, if the student could not finish the course in the stipulated time or if they have been debarred from appearing for the qualified examinations can also be a cause for education loan application rejection.
CIBIL Score in any education loan plays an important role. Lender institutions are quite strict with the policies regarding the CIBIL score especially for unsecured overseas education loans. Having a CIBIL score lower than 600 can prove to be a major reason behind the rejection of an overseas education loan application. Hence, it is recommended to check with the financial institution regarding the same.
Students securing admission into technical courses are more likely to get the loan approval from their respective lender institutions. STEM courses, Management programs, and other diploma courses are popular and are preferred for securing a high-paying jobs at the end of the program. For the MBBS program, banks and other financial institutions does not offer overseas education loan.
Choosing a right country is equally important in an overseas education loan application process as choosing a right program. Both the financial lenders public and private including NBFCs and International Lenders maintain a list of certain countries for which an overseas education loan is approved. Some of the popular countries that are on the top of every lender’s list includes USA, UK, Canada, Australia, New Zealand, Netherlands, France, Ireland, Italy and Sweden. Countries like China, Afghanistan and Ukraine faces higher chances of an overseas education loan rejection.
Insufficient documentation is another reason that leads to the rejection of an overseas education loan application. In case of a secured overseas education loan, it is of utmost importance to provide all the necessary documents. Hence do check with the bank or book a free appointment with us to get the right checklist for the list of documents to be submitted. If you still have any queries, reach out to us at www.elanloans.com and request a call back today. We will guide and assist you in submitting an online loan application for abroad studies without any hassles.
