Advantages of Education Loan on Property

How Does CIBIL Score Matter In Education Loans?

Usually, the cost of pursuing higher studies abroad is quite expensive and to pay for it many aspirants look for external financing such as an education loan. For instance, the cost of pursuing a course in the United Kingdom can cost anywhere between Rs.19 lakh and Rs.39 lakh based on the selection of an academic course and University.

However, the chances of availing such a loan depends significantly on the CIBIL score of the guarantor backing up the applicant. It is because the score serves as a summary of an applicant’s credit history and his/her track of previous repayments.

CIBIL Score and Education Loan Against Property One must, nevertheless, note that a high CIBIL score can come in handy in more than one way for borrowers. For instance, individuals with a high credit score are more likely to secure a lower interest rate and better terms of repayment than most others.

For instance, the following factors impact one’s CIBIL score to a great extent. ● ● ● ●

Repayment history accounts for 35% of this rating.

Credit utilisation ratio makes up 30% of the score.

Loan tenure acquires 15% weightage.

Credit mix and CIBIL score enquiry makeup for 10% of this score.

One can take measures to improve this existing credit score by taking care of a few factors. The most effective means include – ● ● ● ●

Repaying debt in time.

Keeping credit utilisation ratio below 50%.

Maintaining a diverse credit mix.

Limiting the number of loan applications at a given time.

Hence, individuals with low credit scores can avail an education loan against property from a lender who extends credit against a low CIBIL score requirement.

Education Loan Against Property ● Simple eligibility - Being a secured credit option, a loan against property is made available at simple eligible criteria. ● High loan value with zero restrictions to use - Leading financial institutions provide up to 75% – 90% of the mortgaged property’s market value as the loan amount. ● Flexible repayment tenure - Leading financial institutions offer this credit at flexible repayment tenure that allows borrowers to plan their repayment and streamline it accordingly. For instance, usually selfemployed applicants get up to 18 years to repay the mortgage loan.

Conclusion Also, the lenders provide tailor-made pre-approved offers to customers that make the process of availing a financial product less time-consuming and simple. Usually, these offers are available on multiple financial products like loans against property and home loans. You can check your pre-approved offer by sharing details like name and mobile number.

With all these aspects in mind, individuals can proceed to apply for a suitable funding option, preferably a loan against property, to fund higher education. Simultaneously, they must also make proper arrangements to ensure timely repayment of the advance and improved financial management.