Can I get an education loan with bad credit?

Posted In education loan On January 30, 2020

Yes. You can avail an education loan with bad or non-existent credit. But the real question is how?

Securing quality college education has become a prerequisite for a bright career. But to realise this dream, there are several stumbling blocks that a student has to overcome. From selecting the right college to securing the tuition fees, it’s a hassle like no other. Most students thus resort to education loans to satisfy their college education. The government also insists on encouraging students to take out education loans. But there’s a catch. 

Most of the banks (Public & Private) provide education loans on the basis of financial activity which is then used to assess your credit score. Since at this point the student has no credit history, the credit history of the co-applicant is considered for the loan. As such the banks only give out loans to those candidates, whose credit score is above a certain range (750+ in most cases). Thus, a majority of the deserving candidates fail to get financial aid because of such strict credit assessment.

Some points to consider while applying for an education loan -

  • Make sure your last default was 24 months old.

  • Keep in mind that each enquiry into your credit score will, in turn, affect your credit score.

  • Keep all the credentials/documents ready before applying for a loan.

  • Make sure your co-applicant has a decent credit score.

Generally, banks will perform a soft credit pull to determine if you qualify for an education loan. So, remember if you or your co-applicant doesn’t have a good credit score, you will not qualify for the loan. Although some NBFCs (Non-Banking Financial Companies) tolerate a low credit score for a high-interest loan, you might want to consider several options before signing up with them. In short, getting a student loan with a low credit score is possible though you might end up with a higher interest rate on your loan.

Another viable option is merit-based education loans.

Procuring the funds for the right college education is no longer a privilege for the few. You can apply for a merit-based loan here at Credenc and get started on your college journey right away.

What is a merit-based education loan?

‘A merit-based education loan program is meant for the high achieving students from low-income backgrounds to help them secure the right college education on their own.’

Just fill an online form, give an assessment and you're ready to go with a Credenc pre-approved merit-based education loan for your college.

Some core features of Credenc’s merit-based education loans -

1. A student loan based on your future employability

  • We measure a student’s employability by conducting a hard and soft skill

assessment and leveraging a new credit model built on Artificial Intelligence.

2. A Machine Learning driven credit model

  • We have employed a Machine Learning driven credit model, which takes into account 1.3 crores + data points to predict the future income of the students.

3. A loan program based on your future rather than your past

  • The model assesses applications on a student’s future employability

    rather than on his/her parent’s credit history, thus empowering millennials

    in securing their college education on their own.

4. Support beyond lending: Career Counselling to Employability

  • Get more than just a loan. Once you’re a Credenc fellow, you get exclusive access to career counselling, interview prep & other services for free to make sure your college education translates into a bright career.

About Credenc -

Credenc is a fintech education platform at the forefront of disrupting the traditional educational financing landscape with a unique credit model that takes into account a student’s future employability to deliver financial aid. 

Make your college dream a reality. Get merit-based education loans for colleges across India. Click here to get started.

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