Tata Capital > Blog > Loan for Education > Credit Score for Education Loan
28 October 2026
7 mins read
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The high demand and the changing nature of education have made multi-year degrees more expensive. Education loans come to the rescue for those who want to avoid shelling out the entire cost of education out of pocket.
When you apply for an education loan, the lender uses your CIBIL or credit score to determine your creditworthiness. A high CIBIL score ensures the lender that you’re not a credit risk.
But what if, as a student, you don’t have a credit score? Is CIBIL score required for an education loan in that case? How much CIBIL score required for education loan? Does education loan affect CIBIL score?
Read on to find out.
The minimum credit score required by different lenders varies however, typically the minimum education loan CIBIL score required is 750.
If you’re a student without any credit history, then you can apply for an education loan with a working parent as a joint applicant or a guarantor. In such a case, the lender will consider your parents’ credit report to determine their repayment capacity on your behalf.
In this case, the following documents are required:
Education loans allow students to study in their desired country and institution, providing support for tuition, lodging, books, and more. CIBIL scores are central to determining whether an education loan is approved.
With a higher credit score, you can access the following education loan benefits:
To improve your CIBIL score for education loan, follow these steps:
It is crucial to have a good CIBIL score for education loans. Most financial institutions require a minimum CIBIL score for education loans (most set at 750 or higher). However, if you do not have this score, worry not!
Below are some ways to improve your CIBIL score:
Just like any other type of loan, an education loan also affects your credit score depending on your repayment behaviour. It is also reflected in your credit history. If you’re regular with your EMI payments and have a clean borrowing history, it will positively reflect in your credit report.
The positive effects of an education loan on your CIBIL score include the following:
In contrast, repeated delays in EMI repayments can unfavourably affect your credit score. The negative effects of an education loan on your CIBIL score. You can perform a CIBIL score check online to keep track.
A CIBIL score is required for education loans, especially when applying to traditional private and public-sector banks. But what do you do when you don’t have a credit score?
We outline some ways to apply for an education loan without a CIBIL score:
1. Government-backed schemes
The Indian Government supports students from economically weaker sections through schemes such as the Central Sector Interest Subsidy Scheme (CSIS) or the Credit Guarantee Fund Scheme.
2. Apply with collateral and co-applicants
Many financial institutions will grant students education loans even if they don’t have a CIBIL score, provided they apply with a strong co-applicant or good collateral. This helps lenders to offset risk.
3. Explore NBFCs and alternative lenders
Apart from traditional banks, alternative lenders like NBFCs offer competitive education loans, with rates varying by profile. Some may allow you to apply without a CIBIL score as well!
Applicants can get an education loan despite having a low CIBIL score in many ways.
These include:
Yes, the co-applicant’s CIBIL score will impact the education loan. Since most students lack a credit history of their own, financial institutions will look at the co-applicant’s (usually a parent or guardian) credit history and income. A poor CIBIL score could lead to rejection, higher interest rates, and other unfavourable terms. In contrast, a good CIBIL score could lead to better repayment terms and interest rates.
A good CIBIL score for education loan above 750 provides many benefits when applying for an education loan. If you’re a student, the bank considers the credit score of your parents or guardian. Timely repayment of an education loan affects your credit score positively.
Want to apply for a loan for your higher education but are not sure if you have the perfect credit score? You can perform an online CIBIL score check free with Tata Capital. Visit our website to check your credit score and get started with your loan process.
You can also apply for a quick education loan with us at competitive interest rates. To know more, contact us today! For more information, head to the Tata Capital website or download the app today!
You can get an education loan even without a credit score. For this, you will have to apply for a co-applicant with a good CIBIL score.
Most financial institutions require a CIBIL score of 700 or more for education loans and others. However, some institutions offer loans for lower credit scores.
Education loans do affect your CIBIL score. They are a form of credit, so if proper repayment management improves CIBIL scores.
To check your CIBIL score, you can register on CIBIL’s official website. You can also check it using Tata Capital’s credit score checker.
The minimum credit score for an education loan is usually 685. However, some financial institutions may offer loans at lower scores.
In general, financial institutions prefer CIBIL scores of 685 and above. However, some may offer education loans to those with lower credit scores as well.
Many banks provide education loans with low CIBIL scores upon furnishing additional documents demonstrating financial stability. These documents ensure the lender regarding your creditworthiness.
Yes, depending upon the lender, you can take advantage of a 40 Lakh education loan without collateral.
Yes, a bank can reject an education loan for various reasons, including a low credit score.
Yes, you are eligible for an education loan with 50% marks from some lenders. However, in most cases you must have an admission letter from the university you’re planning on attending.
A CIBIL score of 900 is considered perfect. However, a score of 750 and above is usually considered excellent by most lenders.
How much CIBIL score is required for an education loan varies by lender, but most require a score of at least 650-700.
A CIBIL score is usually required for education loans. However, some lenders may accept a co-applicant’s score or collateral instead.
Since students usually do not have a credit history yet, most financial institutions will check the co-applicant’s credit score.
Before applying, one can get a good credit score for education loans by paying credit bills and EMIs on time, keeping credit utilisation low, and closing existing debts.
Before applying, one can get a good credit score for education loans by paying credit bills and EMIs on time, keeping credit utilisation low, and closing existing debts.
Missing EMI payments can negatively affect the co-applicant’s and borrower’s CIBIL scores. This is because it may indicate poor repayment capacity.
Government education loan schemes mainly focus on income eligibility. While credit scores are reviewed, students without a credit history or strong co-applicants can still apply if they fall under economically weaker sections.
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