How to Get a Study Abroad Loan with a Low CIBIL Score

Studying abroad. Two words that instantly stir up emotions, excitement—and lots of questions. The biggest one? How to finance it. Getting a study abroad loan with a low CIBIL score can feel almost impossible for many students. That three-digit number becomes an invisible wall blocking their dreams. But here's the truth: your CIBIL score does not define your future. While lenders may consider it, there are still many ways to fund your international education, even with a less-than-perfect credit history.

Thousands of students with low credit scores have successfully financed their global education by simply understanding their options and taking smart steps. Whether it's leveraging co-applicants, opting for secured loans, or choosing a trusted partner like Lorien Finance, there’s always a way forward. In this blog, we’ll walk you through the proven strategies to secure a study abroad loan with a low CIBIL score, and how to make your overseas education dream a reality.

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Why Your CIBIL Score Matters in a Study Abroad Loan

Your CIBIL score, ranging from 300 to 900, is a reflection of your creditworthiness. Lenders use it to evaluate how likely you are to repay the loan. Generally, a score above 700 is ideal. But if your score is on the lower side, don’t worry—it's not a dead end. Lenders may still approve your study abroad loan with a low CIBIL score by evaluating other factors like collateral, income, or a co-applicant’s profile.

Top Ways to Get a Study Abroad Loan with a Low CIBIL Score

Go for a Secured Loan

Offering collateral such as property, fixed deposits, or insurance policies can improve your chances. A secured loan lowers the lender's risk and increases your approval chances despite a low score.

Apply with a Strong Co-Applicant

If your co-applicant (like a parent or sibling) has a good CIBIL score and steady income, it significantly boosts your loan eligibility. Their strong financial profile can offset your low credit score.

Show Proof of Stable Income

Consistent income—either yours or your co-applicant’s—reassures lenders of your repayment capacity. It’s one of the key factors that can make up for a lower score.

Explore NBFCs

Non-Banking Financial Companies (NBFCs) often have more flexible lending norms compared to traditional banks. They may offer study abroad loans with a low CIBIL score, although interest rates can be slightly higher.

Look Into Government Schemes

The Indian government has several student-focused schemes with relaxed credit requirements, especially for economically weaker sections. These can be game-changers if you qualify.

Check & Correct Credit Report Errors

Your low CIBIL score might be due to incorrect reporting. Get a copy of your credit report, review it carefully, and raise a dispute if there are any inaccuracies. Correcting these could instantly improve your score.

How to Improve Your CIBIL Score for Future Loans

Short-term fixes are important, but building long-term financial health is crucial too. Here’s how:

• Pay your EMIs and credit card bills on time.
• Keep credit card utilization low.
• Avoid applying for multiple loans in a short time.

Over time, these steps will raise your score—and make future loan applications easier and smoother.

How Lorien Finance Can Help You Get a Study Abroad Loan with a Low CIBIL Score

At Lorien Finance, we know that your credit score doesn’t define your dreams. We specialize in helping students like you get the right education loans—even when the odds seem stacked.

Here’s how we help:

• Comparing Loan Offers: With over 17+ Indian and global lenders, we help you explore across a wide range of loan options, enabling you to choose the option fits your needs.
• Expert Guidance: Our loan experts offer personalised assistance, helping you understand the details of each loan option and guiding you throughout the application process.
• Exclusive Rewards: Participate in our Study Abroad Loan Fest, where every successful loan disbursement comes with assured gifts and opportunities to win exciting prizes like MacBooks, iPhones and travel kits worth Rs. 20,000.

Getting a study abroad loan with a low CIBIL score may feel like a long shot—but with Lorien Finance, it’s entirely possible. Our mission is to make your study abroad dream stress-free, exciting, and financially achievable.

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FAQs

Can I get a study abroad loan without a CIBIL score?
Yes, especially if your co-applicant has a good credit profile. Some lenders consider alternative factors beyond CIBIL history.

Do NBFCs require collateral for education loans?
Not always. Many NBFCs offer unsecured loans, though they may come with slightly higher interest rates.

How long does it take to improve a low CIBIL score?
It can take anywhere from 3–12 months, depending on your financial habits and how quickly you clear outstanding dues.

Are there government schemes for students with low CIBIL scores?
Yes, several schemes by the Indian government offer subsidised loans and relaxed credit norms for eligible students.

How does Lorien Finance help if I have a low CIBIL score?
We compare lenders, guide you through documentation, and connect you with the best available loan options—even if your credit score is low.