Education loans are a fantastic way to fund higher education independently and beat education inflation. With student loans, you can access quality education without settling for lesser-known universities or courses. If you want to fulfil your academic aspiration by opting for a student loan, you must know some reasons why the education loan may be rejected. So you can be prepared for your student loan application journey.

Key Highlights

·         Why is the student loan rejected?

o    Universities not recognised by the lender

o    Lesser-known courses

o    Unapproved academic destination

o    Incomplete documentation

o    Financial background

·         How to avoid student loan rejection?

·         Avanse education loan

Why is the student loan rejected?

Universities not recognised by the lender

Reputed universities are known to open excellent career prospects enabling students to pay off their education loans efficiently. Many financiers have tie-ups with universities for which they offer student loans. So, please check with your financing partner if they have a tie-up with your preferred educational institution.

Lesser-known courses

Certain courses that can fetch you a lucrative career opportunity hold more prominence because these study programs can unlock your higher earning potential. Better job opportunities will enable easy repayment of student loans.

Some popular courses that ensure seamless education loan experience   

·         STEM courses: Science, Technology, Engineering and Maths

·         Management in Business Administration (MBA)

·         Computer Science

·         Data Science and Business Analytics

·         Design Engineering

·         Finance

·         International Management

Unapproved academic destination

Like the course and universities, financiers have a list of countries for which students can get loans easily. Also, please remember that these destinations will play a huge role in shaping your career and hence, will influence your education loan application decision.

For instance, the US offers Optional Practical Training (OPT) that allows international students to pursue work opportunities in their area of specialisation and Curricular Practical Training (CPT) to access internships. Also, the UK is famous for the Graduate Route that allows students to stay in the UK for 2-3 years to work or to explore job opportunities post-completion of the course.

Some popular destinations that will ensure an easy education loan application journey

·         The US

·         The UK

·         Canada

·         Australia

·         Germany

·         Ireland

·         New Zealand

Incomplete documentation

Every lender will require certain documents to process your loan for education. If you do not submit the documents during the initial stage of the application process, your financing partner will share the required documents, which you can furnish as and when required. But missing documents can create a hurdle.

Some important documents

·         Student KYC and academic transcripts

·         Details regarding the course and fees

·         Co-borrower KYC and income details

·         Collateral document (if you opt for a secured education loan)

Lack of university acceptance letter

Your university will issue an acceptance letter once you clear the admission process and secure a seat. This will act as proof confirming your university admission, to your financier. To ensure a hassle-free experience, ensure you keep this document in place.  

Financial background

Since a study loan is the first debt in a student’s life, the financial background of your co-applicant will be examined by the financier. Also, please remember that credit score is important in your student loan application process.

How to avoid student loan rejection?

Whether you opt for education loans for study abroad purposes or to study in India, the lender will evaluate your student profile based on parameters such as academic scores, entrance exam scores, continuity in education, the pedigree of the university, and course, to determine your employability potential. If you meet the preset criteria of the lender, your education loan will be sanctioned. Hence, it is advised to opt for well-ranked universities and recognised courses to ensure a smooth transition from academics to your career. So, by keeping these parameters in mind, you can avoid student loan rejection.  

Avanse education loan

As a student-centric organisation, at Avanse Financial Services, we prioritise students’ employment scores over the co-signer’s financial background. Co-applicant’s financial details will be checked as a part of the process. We offer an educational loan to study abroad and to study in India with a bundle of benefits such as 100% finance, customised loans, flexible repayment options, and quick sanctions.

If you have more queries, we at Avanse Financial Services will be more than happy to answer them all. Please remember we are just a call away!