Education loans with low credit scores are very much possible in the present day. Owing to this reason, domestic and study abroad students with not-so-satisfactory credit histories can pursue higher education in India and foreign nations.
As getting student loans with bad credit in India can be challenging, students can reach out to Fly Finance. This financial service wing of Leverage Edu helps students avail of loans from trusted financial institutions despite the not-so-good credit of borrowers and co-borrowers. However, the availability of loans is strictly limited to the final terms and conditions of nationalised banks of India, private student loan providers, and non-banking financial institutions (NBFCs).
When applying for study abroad loans or domestic education loans in India, borrowers must ensure that they check out government-sponsored student loan schemes such as Central Sector Interest Subsidy Scheme (CSIS). Owing to the availability of subsidised loans, students can get loans despite low credit scores. This is on account of the fact that banks focus on the academic performance of students rather than the credit history of borrowers and co-applicants.
How Can Student Loan Borrowers Improve Credit Scores?
Improving credit as an education loan beneficiary helps borrowers secure better loan terms, interest rates, and other financial opportunities in the future. Here are some ways to improve credit scores:
- Consistently paying your bills, including credit card bills, loan payments, and utility bills, on time is one of the most effective ways to build a positive credit history.
- Additionally, avoid opening unnecessary credit accounts as opening multiple credit accounts within a short period can raise concerns for lenders and impact credit scores.
- Moreover, having a mix of credit types such as credit cards, student loans, etc. can positively impact credit.
- Furthermore, monitoring credit reports allows students to stay informed and address any issues promptly.
- In addition, paying down credit card debt or keeping balances low demonstrates responsible credit management.
Stay in tune with Fly Finance News Desk to stay informed about study abroad loans and international money transfers.
