I have a low CIBIL score, but my parents and a co-applicant have excellent credit histories and are willing to pledge valuable collateral (e.g., property). Will banks still deny my education loan application?
If your parents and co-applicant have excellent credit and are willing to provide strong collateral (like property), it significantly increases your chances of loan approval. Since your co-applicant has a strong credit history, it can offset your low CIBIL score to a certain extent.
Hello @Yash_Arora
Since, a CIBIL score is an important deciding factor for securing an education loan, having a low CIBIL score might cause a hindrance in your loan application but the lenders usually check the CIBIL score of the guarantors(i.e. parents), if they have a low score then there are high chances that the loan can be denied. The lowest CIBIL score that is considered for an education loan is 650.
It is slightly difficult to get an education loan with low CIBIL score but it is not impossible. Apart from your co-applicants strong credit histories, you might also want to focus on:
1. Maintaining a strong academic record: Healthy and strong school records stand a great chance of increasing the probability of approval of your loans.
2. Previous institution’s Reputation: Loans for studies at well-known and esteemed institutions are regarded favourably, more than other institutions.
3. Course category: Approve a loan for professional courses with high chances of getting a job like an MBA.
Read more: How to Get an Education Loan with a Low CIBIL Score | 2025 | GyanDhan