Is CIBIL score required for education loan?

Question

Taking an education loan is a tricky and lengthy process. Can someone here please clarify whether a good CIBIL score is required for an education loan? Please provide details about the further process, requirements, and terms & conditions. #CIBIL #EducationLoan

Shoaib Ahmed · Answer

When you're getting an education loan, the CIBIL score, which shows how good you are at managing credit, can be important, but it depends on how much money you're borrowing. For smaller loans, the bank might not focus much on the CIBIL score. For bigger loans, they usually check the CIBIL score of the person who is helping you get the loan (like a parent).

Here's what else you need to know:

Applying for the Loan: Fill out a form and give the bank your school admission letter, ID proofs, your report cards, and money details.
Bank Checks: The bank looks at your school and course, and the money situation of your loan helper (like income).
Security for the Loan: For big loans, you might need to offer something valuable (like a house) as security.
Interest Rates: The amount of interest you pay varies. Some special loans have lower interest.
Paying Back the Loan: You'll get details on how and when to pay back. There's usually a break period where you don't have to pay right away.
Your Contribution: Sometimes, you need to pay a part of the total cost yourself.
Insurance: The bank might ask for insurance on the student borrowing the money.
Extra Guarantor: For big loans, apart from security, you might need someone else to guarantee the loan.
Remember, it's always best to talk directly with the bank to get the most current and specific information. Each bank can have different rules and offers

Is CIBIL score required for education loan?

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