Why CIBIL Score is Important in Obtaining Overseas Education Loan
Have you ever wondered the key to unlocking your dreams of studying abroad? Well, the answer lies in a three-digit number: your CIBIL score. In overseas education loans, your CIBIL score shapes your financial journey. Let’s delve into why this score holds such immense importance and how it influences your pursuit of international education!
What is CIBIL?
The Credit Information Bureau (India) Limited, commonly known as CIBIL, is a credit information company that maintains credit records of individuals and businesses. The CIBIL score, ranging from 300 to 900, is a numerical summarisation of an applicant’s creditworthiness based on their credit background.
How is the CIBIL score calculated?
Calculating your CIBIL score involves various factors that provide insights into your credit behaviour and repayment patterns. These factors include:
- Payment History: Timely payment of credit card bills and loan EMIs reflects positively on your score.
- Credit Utilization: Your sanctioned credit limit that you use affects your score.
- Credit Mix: A leveraged mix of secured and unsecured loans can impact your score.
- Length of Credit History: A longer credit history can contribute positively.
- New Credit: Frequent applications for new credit can negatively affect your score.
- Credit Inquiries: Multiple hard inquiries can quickly lower your score.
Does an education loan affect my CIBIL score?
Certainly, taking a study abroad education loan does have an impact on your CIBIL score. Making timely payments on your loan EMIs can positively affect your score and boost your authenticity in the loan market. Conversely, missing payments or defaulting on the loan can lead to an adverse decline in your score.
How Does Your Credit Score Affect Your Student Loan?
Your credit score significantly influences your ability to secure a overseas education loan. Here’s how it affects the loan process–
- Loan Approval: A high credit score enhances your chances of loan approval, reflecting your responsible credit behaviour.
- Interest Rates: A remarkable credit score can lead to lower interest rates, saving you money over the loan tenure.
- Loan Amount: Lenders may be more inclined to offer more loans to individuals with a strong credit history.
- Repayment Terms: A favourable credit score can lead to more flexible repayment terms and conditions.
What is the minimum required CIBIL score for an education loan?
There isn’t a fixed minimum CIBIL score requirement for education loans, as different lenders may have varying criteria. However, a CIBIL score of around 750 or higher is generally considered favourable for obtaining competitive interest rates and better terms.
Financial Passport to a Brighter Future!
Your CIBIL score is more than just a number; it represents your financial accountability. And at Eduloans, we work hard to boost your credit score so you can obtain loans more easily, seamlessly. We assist you in obtaining the finances you require on schedule by providing customized solutions, experienced coaching, and well-structured financial planning! Register with us for a secured tomorrow!