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Even if you do not have a credit score or have never taken a loan, it is not difficult to get an education loan. It is important that you apply correctly and prove your credibility with strong documentation.
New Delhi. Imagine you have got admission in a top university, but the bank asks you to show your credit score first. Now the problem is that you have never taken a loan, so where does the score come from? The good news is that you can get an education loan even without credit history, just a little understanding and proper preparation is required. Know how with the help of admission letter, proper guarantor and smart documentation, you can get a loan for your dream studies, that too without the hassle of credit score.
Many banks and NBFCs now give loans even to students who have no credit history. For these institutions, the course, reputation of the university and profile of the co-signer are important. If you have taken admission in a reputed college and there is a possibility of a better job in future from that course, then the chances of getting the loan increases.
Make guarantors with good credit records
Apart from this, it is also very important to have a good co-signer or guarantor. Parents or relatives who have stable income and good credit record can become guarantors for you. Keep their income proof, tax return and KYC documents completely ready. While applying, please provide details of admission letter, fee structure and course. Also, show that you will be able to repay the loan by estimating the potential salary and career growth after completion of the course.
Compare the interest rates, repayment time and moratorium period of different lenders to find the most beneficial option for you. Most importantly, start building your credit history during college like making payments on time or getting a small secured card. This will make it easier to take loans in future and will provide better terms.
