Here’s a fact: everyone deserves top-quality education. After all, it’s one of the most rewarding investments one can make. That said, with rising tuition costs – in both India and abroad –, education now comes at a premium price tag.
Education loans, therefore, are an essential tool in scaling these financial barriers. However, getting one can be challenging, especially with a low credit score. Find yourself in a similar situation? Well, there’s no need to lose hope.
Here are some options you can explore to get an education loan with low CIBIL score.
Opt for a secured loan
In the case of an unsecured education loan, the credit score is the only evaluation metric left, besides income, for lenders to gauge your creditworthiness. So, if your score is on the lower end of the spectrum, chances are you might not be approved, or worse will be charged higher interest rates.
However, if you have an asset you can pledge as collateral, your credit score becomes a secondary factor to the lenders. In fact, you can even secure more competitive personal loan interest rates by putting up collateral.
Additional Read – Reasons Education loan is preferable than Personal loan
Correct any errors in your credit score report
Sometimes, it may so happen that you have a low education loan credit score, but for no fault of your own. Yes, it’s pretty common to have errors in your credit report, which can lower your credit rating. To avoid such scenarios, it’s best to check your credit score regularly. Doing so will help you identify any issues the moment they crop, allowing for a quick resolution.
You can check your CIBIL score and correct any problems by visiting the official CIBIL website.
Request for a joint loan or get a guarantor
If you’re thinking of funding your own education but lack the required credit score, you can opt for a guarantor to improve your loan eligibility. However, make sure the guarantor, preferably, has a high credit score and immaculate credit record. Why? Because lenders would be more likely to offer you a better offer on the low credit score student loans if your guarantor has a decent credit history.
Alternatively, you can also opt for a joint loan with a co-signee to improve your odds of approval.
Additional Read – Can You Get Education Loan for Online Education?
Another way to get an education loan is to apply for a loan with an NBFC. Why? Because banks usually have stricter eligibility requirements, whereas NBFCs have easy-to-meet conditions. With a loan from an NBFC, you get an assured education loan at competitive interest rates.
Talking about NBFCs, choose India’s most trusted NBFC – Tata Capital – to secure your future. With our personal loans, you get affordable interest rates, easy eligibility, and swift approvals and disbursals. Enjoy flexible EMI plans and extended loan tenures for a comfortable borrowing experience with us.
Start planning your educational journey today with our personal loan EMI calculator.