Banks provide loans based on the customer's repayment capacity. Banks will assess the repayment capacity, and if after paying the home loans EMIs, the borrower still can pay the new loan EMIs then the bank will provide the education loan. However, There can be a situation where the borrower's Home loan EMI is so high that any further will strain his monthly budget. In such a case, the bank will deny him the loan considering he won't be able to repay it.