Everyone wants a good education, and sometimes a person has to borrow money to get a good education because they would not be able to afford the education themselves. The process of taking an education loan in India is a tough one. Most banks have rational interest rates on education loans. A poor credit score will make it hard to get loans. Here’s how to get education loan CIBIL score low or not.
CIBIL Score
CIBIL (Credit Information Bureau India Limited) is India’s first Credit Information Company. All banks and financial institutions in the country are required to send an individual’s credit card and loan history to CIBIL each month. CIBIL then gathers and preserves the Credit Information Report (CIR) to generate a credit score. Education loan CIBIL Credit Score or CIBIL Score is a three-digit number that can have any value between 300 and 900. This value is measured on the basis of the data in the CIR of an individual and is a measure of his or her creditworthiness. During the loan appraisal process, the lenders use this ranking. A higher score shows that the person is more likely to repay the loan on time, thus raising the chances of getting the loan. A lower-ranking, on the other hand, decreases the chances of getting the loan.
Tips to get a loan with a low CIBIL Score
1. Show timely repayment records on current bills
CIBIL score depends on repaying the current debts in a timely manner. Ensure having a record of timely payments on all the unpaid debts, such as credit cards, EMIs, and utility bills, before applying for a loan. This will help in building a higher credit score and improve the chances of approval.
2. Present proof of income to sustain the ability to repay loans
Other variables, such as current salary or income streams, are considered by most lenders, along with credit score. Someone with a poor credit rating will also provide evidence of an increase in salaries, annual bonuses, or other additional sources of income in bank statements. This proves that the person is adequately financially stable to repay the loan on time.
3. Request for a loan from the NBFC
It is best not to apply for a loan from a bank because each assessment of the loan application is accompanied by the review of the credit report that results in hard investigations when someone has a bad credit score. Since they tend to have more relaxed policies against clients with poor credit ratings, it’s easier to apply for a loan from an NBFC. A significant thing to remember here, however, is that the interest rate paid by NBFCs is higher.
4. Opt for a low sum for personal loans
The lender may consider an individual as a risky client if he borrows a huge amount of money with a low credit score. So to produce a better credit score, he should opt for a lower sum and repay it annually. This will gain the trust of the lender in his creditworthiness, and he can go back for a higher sum of the loan. Repayment of a smaller amount would also be easier on the wallet.
5. Get a guarantor or request a joint loan
Even if someone has a low CIBIL score or is new to credit, with a co-applicant or a guarantor, he will get approved for a loan quicker. The lender would be more likely to assist with a better offer on the loan sum if the guarantor has a decent credit history and a high credit score.
6. Request a Secured Loan
Another simple way to guarantee the loan repayment is to apply against any collateral, which may be against collateral such as gold or private property/other valuable properties.
When applying for a mortgage-backed loan, there are several banks and financial institutions that readily offer loans to low credit score holders. In general, properties such as land, gold, fixed deposits, etc., are approved by lenders as collateral to disburse a secured loan even to low CIBIL score applicants.
7. Resolving Credit Report Errors
There are also real instances where mistakes or misreporting on the credit report have occurred. Keep the CIBIL score reviewed once every six months to ensure that such errors do not occur and that the credit report is revised.
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How to Complete Math Assignment Without Making Errors?
Mathematics is also known as maths. It is a subject of numbers, shapes, measurements and logic. Several students hate maths as they find it difficult to understand but maths can be your favourite, you only need to give the subject more attention. Students often do not take an interest in solving math questions and thus make mistakes and score lower. It’s okay to make errors, but what is not okay is to make errors because of an irresponsible attitude towards the subject. If you were searching on the internet for math assignment help then you are at the right place. Here are some strategies and tips to remember when working on your math assignment.
By John Noels7 days ago in Education
Comments (1)
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