I’m planning to apply for an education loan, but my CIBIL score isn’t great. Is there any way to get an education loan in India with a low credit score? Has anyone faced this before?
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Yes, you can still get education loan if your CIBIL score is low.
- For most education loans, the student is the main applicant, but since students usually don’t have a credit history, the co-applicant’s score (like your parent or guardian) becomes important.
- If the co-applicant has a low CIBIL score, some public sector banks may still approve the loan for smaller amounts (like up to ₹7.5 lakh) without collateral, especially if the student has secured admission to a good college.
- For higher loan amounts, where collateral is required, banks may be more flexible about the CIBIL score if the security is strong (like property or fixed deposits).
- NBFCs and private lenders are also an option — they might offer loans even with low scores, but interest rates can be slightly higher.
- Another tip: If your loan application gets rejected, try improving your co-applicant’s credit score or add another co-applicant with a better score.
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Most of the times, the banks ask for a guarantor or a collateral for the education loans. As the students usually have no income and credit history, one or both of the parents are co-applicants or the guarantors. So while accessing the application, the banks look at various factors including the academic track record, the financial stability of the parents and the economic viability of the college and course you are choosing. So CIBIL score becomes a lesser significant part of the loan application compared to the other kinds of loan and hence, you should be able to get the loan if other factors check out.