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How to Get an Education Loan If Your Co-Applicant's CIBIL Score Is Low

A low CIBIL score on your co-applicant makes most lenders cautious, but it doesn't close every door. You can bring in a stronger co-applicant, use a lender that relaxes the co-applicant profile, or skip the co-applicant altogether at certain universities.

Written by Deepak Agrawal, Founder & CEO, FundMyCampus · MBA, IIM BangaloreReviewed by Ashmita Agarwal, Senior Education Loan Counsellor, FundMyCampusUpdated on

Quick answer

  • Best fix: add or switch to a co-applicant with a stronger credit record — a sibling or other close relative.
  • Borderline score: try Avanse Global's relaxed co-applicant route before assuming you'll be rejected.
  • No one with good credit: Avanse Global (162 listed universities) or Prodigy Finance need no co-applicant at all.

Why a low score is a different problem

Lenders look at a co-applicant for two things: proof that they earn enough, and proof that they repay what they borrow. A low CIBIL score is about the second — it is a credit-risk problem, not a paperwork problem.

That matters because some relaxations don't help here. SBI, for example, can be flexible on a co-applicant's income proof at its 100 listed universities, but that is for a co-applicant whose credit is fine and whose income papers don't line up. It does not cover a low credit score. If income proof is your problem instead, see our guide to education loans without a co-applicant.

Your options, strongest first

Education loan options when the co-applicant's CIBIL score is low
OptionWho or which lenderWhy it works
1. Add a stronger co-applicantAnother close family member with a good credit recordUsually the quickest fix — the loan stays with your preferred lender
2. Avanse Global, relaxed routeAvanse GlobalCo-applicant still needed, but with a much more relaxed profile — at about 1,447 universities
3. No co-applicant at allAvanse Global (162 listed universities) or Prodigy FinanceSidesteps the co-applicant's credit entirely; university and course must be on the lender's list

1. Add or switch to a stronger co-applicant

The co-applicant doesn't have to be the parent whose score is low. Most lenders accept a parent, guardian, spouse or sibling, and some accept other close relatives. A salaried sibling with a clean repayment record often turns a weak application into a strong one — with the same lender and rate you were aiming for.

2. Avanse Global's relaxed co-applicant route

Avanse Global's collateral-free loan, from 12%, has a tier where a co-applicant is still required but their profile is judged far less strictly. It covers about 1,447 universities in the USA, UK, Canada, Australia, Germany, France, Ireland and Singapore. If your co-applicant's score is borderline rather than seriously damaged, it is worth testing this route before assuming a rejection.

3. Lenders that need no co-applicant

If no one in the family has a credit record a lender will accept, go around the co-applicant entirely. Avanse Global needs no co-applicant (and no collateral) at 162 listed universities — 100 for STEM and 62 for Management. Prodigy Finance lends without a co-applicant or collateral for listed STEM and MBA programmes at about 670 schools, from 9.25%. Both look mainly at your admission, course and expected salary.

Improving the score for next time

If you have a few months before you apply, these steps help a co-applicant's score recover:

  • Check the report for errors — wrong entries or loans that were closed but still show as open can be disputed with CIBIL.
  • Clear overdue amounts on credit cards and loans, and keep every EMI on time from now on.
  • Use less of the credit limit on credit cards — high utilisation pulls the score down.
  • Avoid new loan or card applications just before the education loan; each one adds an enquiry to the report.

Not sure where your application stands? Check the full education loan eligibility criteria, or compare every lender's co-applicant rules on our lender comparison.

Related questions

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Education Loan With a Low-CIBIL Co-Applicant — FAQs

Straight answers to the questions students ask us most

There is no single cut-off that every lender uses. Each bank and NBFC sets its own minimum and weighs the score alongside income, existing loans, your university and the loan amount — so a score one lender rejects can still be accepted by another. Share your co-applicant's score with us and we'll tell you which lenders are realistic for it.
Many lenders let you add another family member to strengthen an application, but the rules on who can join and how their income is counted differ from lender to lender. If a parent's score is low, a salaried sibling or other close relative with a strong credit record is often the better primary co-applicant. We check each lender's policy for your case before you apply.
Look at lenders that don't need a co-applicant at all. Avanse Global lends without a co-applicant or collateral at 162 listed universities, and Prodigy Finance lends without either for listed STEM and MBA programmes. Both decide mainly on your admission, course and expected earnings rather than a family member's credit history.

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