Wondering how to get a higher education loan without any fuss? We’ve got you covered! Here’s a handy guide to help you out.
Whether you want to study in India or abroad, the education loan process is pretty simple. But to get your desired loan amount and ensure the process goes smoothly, you need a healthy credit score. After all, it can fetch you a sweet deal and help you negotiate for better terms.
But first, let’s consider what CIBILscore for education loans is.
Why is CIBIL score important for a higher education loan?
Whether you are a student, or a parent applying as a co-applicant, the lender will assess your credit history to determine your loan affordability. This is often the most critical personal loan eligibilitycriterion.
The CIBIL score ranges from 300 to 900 and summarizes your past credit. However, a credit total of 750 or above is usually ideal when applying for a loan for education.
Additional Read – All You Need to Know About CIBIL Score
How does CIBIL score affect your loan?
As a student, you can apply for a loan in two ways.
- You can apply yourself if you have an existing credit line like a credit card. In such a case, the lender will evaluate your student credit history.
- If you do not have a credit history, you can get a loan with a working parent as a co-applicant. In this case, the lender will look at your parent’s credit history to determine their repayment capacity on your behalf.
In either case, the higher your credit score is, the higher are the chances of your loan getting approved.
What’s more, a low credit score can impact your loan terms such as interest rates, repayment tenure, loan amount, and so on. Thus, it’s imperative you manage your credit dues well. This will help you maintain a good credit history for higher educationloan.
How to improve your credit score?
If you have a low credit score, here are a few measures you can take to boost it:
- Make good use of the credit card – If you have a credit card, using it often and paying your bills on time will help keep a spotless repayment record and increase your credit score.
- Pay dues on time – Your payment history has the biggest impact on your credit score. So, you must ensure to pay your credit card bills and loan dues timely.
- Keep your credit report updated – While credit institutions usually have all your repayment records, your reports can still miss recent updates. So, make sure your credit report is updated and free of errors.
Additional Read – Steps to Taking a Study Loan
The bottom line
Have you been dreaming of studying in ivy league colleges? Then, let go of your financial worries and turn to Tata Capital!
Our range of multipurpose personal loans will allow you to get quick funds at competitive interest rates. You can enjoy a loan amount of up to Rs. 25 lakhs and apply to your preferred college for higher education.
With a simple application process and flexible EMI repayment facility, convenience is now yours!