JEE Main is one of the most competitive exams in India for admission to prestigious engineering colleges. Banks may perceive higher risk in funding education for courses with intense competition, leading to stricter approval criteria.
The reputation of the institution where the applicant intends to study plays a significant role.
Engineering education, especially in reputable colleges, can be expensive. Banks may hesitate to approve loans for large amounts, especially if the applicant's financial background or collateral doesn't meet their criteria.
Banks often require collateral for higher loan amounts. If the applicant lacks suitable collateral or guarantors, securing the loan can be challenging.
A strong credit history is crucial for loan approval. If the applicant or their guarantors have a poor credit history or outstanding loans, banks may be reluctant to extend further credit.
Banks assess the repayment capacity based on the applicant's income stability. If the applicant or their family lacks stable income sources, it can be a barrier to loan approval.
Changes in government policies regarding education loans can impact the approval process. Banks may adjust their criteria based on regulatory changes, affecting loan accessibility.
Fulfilling the extensive documentation requirements can be challenging for some applicants, especially if they are not well-versed with the process or lack necessary documents.