Why A Bank Would Decline An Education Loan With Collateral - Common Reasons | GyanDhan

Educational loan began as an incentive in 2001 for meritorious students looking to further their studies in professional and technical fields, but have no financial means to do so.

This is a companion discussion topic for the original entry at https://www.gyandhan.com/blogs/common-reasons-why-a-bank-would-decline-education-loan

Does being declined hurt credit?

If my education loan is declined, should I wait to reapply as it will be on my credit file? Does it influence the decision in the second attempt?

Absolutely not. Your credit score or CIBIL represents your credit worthiness and your ability of repaying your loan. It ranges from 300 to 900. A CIBIL score of 700 and above is considered good - closer it is to 900, the better your chances of getting approved for a loan.
Factors that impact your CIBIL score are -

  1. Delayed payments
  2. Taking on too many loans and credit
  3. Exceeding your credit limit

A good mix of secured and unsecured loan will have a good impact on your score in addition to paying your EMIs on time and keeping your debt low.