According to IBA, the non-performing assets (NPAs) in the education loan category was 8.97% in March 2018. The NPAs, in March 2016, was 7.3%. IBA data also states that at the end of the FY 2017-18, total outstanding education loan amount in the country was Rs 71,724.65 crore and out of this Rs 6,434.62 crore was NPA. The numbers speak for themselves and give us an idea of why banks have become strict and extremely vigilant when sanctioning an education loan for abroad study. Hence, we come across a lot of cases where a student’s loan application has been rejected. Often, this happens because of minor mistakes while applying for the loan and the student has to face the repercussions and many times even give up on his/her study abroad dream. For the benefit of our readers who might be considering applying for an education loan, let us take a look at the various reasons why an education loan application might be rejected.
This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/why-education-loan-application-got-rejected