You not only want a good education but you need it as well. However, good education is costly as institutes invest a lot to ensure that you get the best. It involves a lot of factors like learned professors, extraordinary curriculum and now a days, a demand for lavish campus and other posh facilities. So, the institute’s charges a lot in the form of fees from the students. So, you will need to take an education loan to ensure that you have the best possible education. You may think that collateral is the most important factors when it comes to education loan. However, your credit scores play a huge role in education loan as well.
What is A Credit Score?
Credit score is a number which represents your worthiness of paying up a debt in the future depending upon your past debt paying history. It plays a very important role in all your future loans. It is also a number which defines your image in the market. Your credit score equates to your legal trustworthiness to any financial institute who is willing to grant you loans of any amounts. The credit scores decide your risk taking capacity in every scenario. High credit scores depicts there is less risk to the lender and that is considered to be good.
Education loan & Credit Score
Like there are two sides of every coin, there is a two way effect of this too. Education loan in India has a positive as well as negative impact on your credit score.
If all your instalments and payments were on time, then that would reflect a positive impact on your credit score. It would make you more trustworthy in the market. So, till you are accurate in paying medium, nothing goes bad. Things turn out dirty when you skip a payment or try to avoid the same. It may affect your credit score in a very negative way.
It takes years to build the credibility but it takes seconds to lose one. In the same way, you must have paid all your instalments and bills on time but your one default can change the game against you. Your lenders will not trust you with large amounts as they will feel that you might not pay the amount back even though you plan to pay the full amount on time. Any delay payments like education loan due to high education loan interest rates, house loan, automobile loan, credit card delays etc. all affect your credit score largely and make you non-eligible for further loans.
We know exactly how important it is for you to have a good credit score in order to avail further loan facilities. We help you with all important points that may be considered while building up your credit score as well as help you in defining your credit score before applying for any loan to the bank or other financial institutes in order to avoid any sort of delays or rejections. You can now sit back and plan your journey.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs