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How can I get education loan if my CIBIL score is low?
Tips to get a loan with a low CIBIL Score
- Show timely repayment records on current bills.
- Present proof of income to sustain the ability to repay loans.
- Request for a loan from the NBFC.
- Opt for a low sum for personal loans.
- Get a guarantor or request a joint loan.
- Request a Secured Loan.
- Resolving Credit Report Errors.
Does parents CIBIL affect education loan?
In such cases, when they apply for an education loan, the lender checks the credit history of the guarantors who usually are, their parents. Thus, if the parents have a poor CIBIL score, there are high chances that the loan can be denied.
Is credit score important for student loan?
Student loan with a bad credit score. Nearly 80\% of loans that are approved by banks are for customers with scores above 750. A person with a very low credit score may be able to avail a loan from a bank, but at a relatively higher interest rate to someone who has a good credit score.
Does the CIBIL score matter for an education loan?
The CIBIL or credit score is just one of the factors in determining your eligibility for an education loan. If this is your first line of credit, the bank may not require the credit score. However, a good credit score will help boost your chances of getting the loan approved.
What is a CIBIL score of 300?
CIBIL makes a summary of all your credit history in the form of a three-digit number which ranges between 300-900. A high score indicates you are a less risky borrower which increases your chances of availing a loan whereas a low score decreases your probability of getting a loan.
What is the role of CIBIL?
CIBIL or Credit Information Bureau (India) Ltd is the authorized agency that provides credit records and scores to banks and money lenders to help them assess if a borrower would be able to repay the loan. All your credit information is provided to CIBIL on a monthly basis.
What is the minimum credit score required for an education loan?
In the case of private banks and NBFCs, a credit score of 700 and above is required to be met by the applicants to be eligible for education loans. A credit score of 750 and above is considered to be good by all categories of lenders. Applicants in such case can get immediate and hassle-free finance for pursuing higher education.