The reason for denying education loan
The banks are not granting loan for all those who are applying for it.The loan is denied for some or the other reasons.
There are several reasons for that.It is to be identified and corrected and post that students can apply for loan in all other banks too.
Every bank will follow a different method of reviews regarding the education loan.Evidences demanded by the bank varies.so before applying for education loan in a bank it is essential to study and learn the procedures of the bank.
The completion of education loan process may take right from two weeks till one month and more even. Similarly it would be better to know the interest charged by the bank and applying in the bank which is charging less interest rate.
Generally banks are showing interest to provide loans for the professional courses like medicine,Engineering,Vertinary ,law,dental ,chartered accountant . Because the students will get the job immediately after finishing the course and they will easily pay back the loan .
For the students choosing arts and diploma courses , because of there is very less chances of job the banks are following several procedures.
Currently in India more than 20 banks are providing education loan for the students.But the confidence that the students will pay back is obtained from the secret confession given by them which is expected by the bank.
That is , the students have to sign and mention the reason why they are asking for loan. The bank is refused for loan on the basis of the student is mentioned that his father’s business came down and so education loan is required for his studies.The reason for this is the bank doesnot have the confidence that he/she will be able to pay back the loan.This statement implies that there is no permanent monthly income.
But the bank is willing to give the credit for the student mentions saying if the loan is credited for my higher studies , I will pay back the loan after finishing my studies .
Not only this , no proper account details of the guarantor, students marks, Applications without required documents, joining in unauthorized institution or unauthorized branch, family’s monthly income being very less are all the reasons for denied education loan by the bank.
The education loan is rejected for the students who are joining in a non standard institution..Those who complete studies from that institution will not be with the expected talent.so the job oppurtunities for them will become late is the reason for this.
But without any reason if the education loan is rejected for a student , he can complain this to the bank manager and the education loan can be applied and get back from some other bank is the opinion of the councillors.
Do not fed up if the education loan is rejected in a bank , correcting all the mistakes while applying and immediately applying for it in other bank and trying to reach it is intelligence.
Moreover if it is a government bank, you may ask and know the basic reason for the education loan rejection. But in Private banks it is not possible.