How do you fund an overseas education if you have a low academic profile?


Study abroad loans have emerged as a strong financial aid. Most study abroad aspirants are now taking out an education loan to fund their education expenses instead of burdening their family and friends with the financial burden. However, while applying for an education loan, there are certain factors that can become the reason for your loan rejection. Among all the factors, the academic performance of the candidate holds the most important place.

Students with a low academic profile often remain worried about their eligibility for a foreign education loan. They have questions like if they are eligible or not; if they are not eligible, then what are the other ways by which they can fulfil their education abroad dream? Here we have enumerated some of the possible and easy ways in which aspirants can fulfil their dream of studying abroad.

Collateral-based education loan

Many students face rejection in loan applications due to poor academic scores. Financial institutions that lend education loans to study abroad have set benchmarks related to academic scores for students. Students who meet these eligibility criteria for education loans will get loan approval from the lender. However, that does not mean students with poor academic performance don’t have any chance to apply for an education loan. If you have collateral, then a secured education loan is an available option for you. Many banks lend the loan based on the value of the collateral and the financial ability of the co-applicant. If you have both options available to you, a low academic score will not be an obstacle to your loan application.

Work experience: 

Keeping yourself updated and upskilling with new technologies is the need of the hour. For many students who have not performed that well in their academics but have great working experience in various companies, this can be an advantageous thing. Few banks, like SBI and Bank of Baroda, provide education loans in India and abroad for working professionals.

NBFCs like Avanse also sanction education loans to study abroad for working professionals who have secured seats in professional courses offered by reputed universities in India and abroad that are approved by Avanse. Working professionals over the age of 18 with at least two years of experience are eligible for this loan.

High credit profile

A CIBIL score is a reliable gauge of a borrower's repayment capacity and financial credibility. Having a high credit score is advantageous when applying for an education loan, especially if it's an unsecured one. Applicants with a good CIBIL score of 680 or above stand to benefit, as it increases the likelihood of loan approval. A higher CIBIL score enhances the borrower's credibility and reduces the lender's risk associated with loan repayment.

Good CIBIL score

A credit score, typically ranging from 600 to 750, is a numerical representation of an individual's ability to repay loans and manage debts. Maintaining a healthy CIBIL score is crucial for future borrowing and loan repayment, as it reflects one's financial credibility. Lenders rely on credit scores to assess loan eligibility, determine credit limits, and set interest rates. Applicants and their financial co-applicants with low credit scores may encounter loan rejection. A strong CIBIL score enhances an applicant's loan profile, making them eligible for high-credibility loans. Even individuals with a less impressive academic background can apply for an education loan if they possess a favourable CIBIL score.

Strong financial profile of co-applicant:

A strong financial profile of the co-applicant is a mandatory condition to be fulfilled by applicants looking to apply for an education loan abroad. The financial co-applicant will be the person who makes the payments of EMI and interest on the education loan since there is a provision that interest cannot be taken from the student account. A financially strong co-applicant must have a good income. The lender will assess the income sources and financial capability of the applicant and co-applicant in order to check whether they are eligible to pay the EMIs and other payments on time or not. An applicant with an average or low academic score can apply for the loan if they have a strong financial co-applicant. Many NBFCs and banks remain flexible in considering the academic score, but having a strong financial co-applicant is a mandatory requirement for everyone.

What are the alternatives to education loans abroad?

Finances can become a hurdle for students planning to study abroad. There are multiple alternatives to education loans that a student can opt for.

Take help from family and friends:

Taking help from family or friends is one of the oldest techniques to arrange funds in times of need. It's not possible every time we can take a loan from the bank; it goes the same in situations when the application of an applicant gets rejected from their bank due to any reason, like a low academic score or a poor CIBIL score. In such scenarios, we can ask for financial help from our family and friends.


For students with poor academic standing, self-funding is one of the options that is most readily available. If you have the resources or know how to secure the funds necessary to cover the costs of an overseas education, self-funding is the best option because there is no stress associated with bank rejection.


One of the finest ways to invest your money or set it aside for emergencies is to buy government gold or sovereign bonds. If you need money but your grades aren't great, you can sell your bond or borrow from any lender using the market value of the bond as collateral.

Fixed deposits:

This is a myth that for collateral-based education loans, we can only use residential property as collateral; however, banks also accept liquid assets like fixed deposits and LIC insurance policies. In cases where students need money to finance their education, fixed deposits can be used as an asset against which you can borrow money from the lender. For fixed deposits, the FD principal value will be considered.


Academic scores hold an important place for lenders when considering your profile for an education loan. However, it does not mean that students with low academic scores are not eligible to pursue higher education in foreign countries. The ways mentioned above will be helpful in managing the expenses of studying abroad.

If you are still confused about whether you can apply for an education loan abroad with a good academic score or not, then you can contact the Education Loan Guru.

By Education Loan Guru