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Education loan : Does defaulting on education loan affect credit scores?

The way you handle your higher education loan has an impact on your CIBIL score and since it marks the beginning of your credit history you should be even more careful in servicing it well. <br>http://www.avanse.com/education-loan

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Education loan : Does defaulting on education loan affect credit scores?

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  1. Education loan

  2. Does defaulting on education loan affect credit scores?

  3. For any student going for studies abroad, higher education loans can be a blessing and the first step towards the fulfillment of his aspirations. • But just as education loans can be a great launch pad for a successful career in the years going ahead, non-repayment of education loans can prove to be disastrous for your credit health. • Let’s take a closer look of the damaging impact the non-re-payment of education loans can have on one’s CIBIL score, and the way and means to prevent such as a disaster. • In a country like India where we have boast of favourable demographics, with 60% of our population being under the age of 35, the role that higher education loans have been stupendous. The numbers bear witness to this growth.

  4. On the other hand, however, this being the first generation that has accessed education loans for going abroad are not adequately aware of the impact that the nonpayment of such loans may have on their credit score and their overall financial health. • For anybody who is making an application for an education loan it is important to know that an education loan forms the foundation of one’s credit history. • Education loans are supposed to be re-paid once the applicant finishes his course and gains employment. • Like any other form of credit, education loans get reported to the credit bureaus and the nonpayment of the same can cause a blemish on your credit history at its very start.

  5. Continue to live frugally till the loan is paid– Some people make the mistake of buying too many things as soon as they join a new job, without having repaid the student loan in full. • Do bear in mind that your education loan is your first liability and you must do all you can to service it well. • So do not start living the high life as soon as you start earning your own money. • Continue with the frugal lifestyle you had maintained as a student and concentrate on the repayment of your loan. • The way you handle your higher education loan has an impact on your CIBIL score and since it marks the beginning of your credit history you should be even more careful in servicing it well. • Source:https://www.creditsudhaar.com/blog/2016/02/08/does-defaulting-on-education-loan-affect-credit-scores/

  6. Follow us on https://www.facebook.com/AvanseEducationLoan https://www.linkedin.com/company/avanse-financial-services https://twitter.com/avanseeduloan https://plus.google.com/+AvanseFinancialServicesLtdMumbai https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug

  7. Read more on Education Loans : http://www.avanse.com/education-loan • Thank You..!!!

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