• Education Loans
Impact of CIBIL on interest rates, disbursal TAT & Loan Amount
620 Reads
3 min Read
Education Loan is one of the tools used by international students to fund their foreign education. The CIBIL score is one of the factors that affect education loans. Read this article to know how a high CIBIL score can get students a higher education loan with a lower interest rate and how students can improve their CIBIL score to get a study loan at an affordable rate.
Table of Contents
- • Reasons to Study Abroad
- • Benefits of a High CIBIL Score
- • How to improve your CIBIL score?
- • How are interest rates determined by banks?
- • Interest Rates of Different Banks for Study Abroad Education Loan
- • How does the CIBIL Score impact interest rate?
- • How does CIBIL Score impact the amount of loan?
- • What impact does CIBIL have on disbursal TAT?
Reasons to Study Abroad
Reasons to study abroad | Description |
Life Experience | For many international students, this could be one of the longest distances they would travel, and for many international students, it would be their first time. Students can take this opportunity with both hands and make the most of it by learning about culture and traditions, making new friends, learning new languages, and visiting the country's best locations. |
More Career Opportunities | Students can find ample job opportunities in various fields after studying at a top university in a popular destination like the USA, UK or Canada. This is because they get to learn in-demand skills. |
New Cultural Experience | While studying abroad, students will be able to experience the culture and traditions of that country. They will get the chance to explore fresh food and places. For example, students can go to the beaches while studying in Australia. |
Personal Development | Studying in a foreign country makes students mature as they care for their food, clothes and many other things. They become more responsible as they have to live on their own. The new place might initially overwhelm them, but later, they get used to it. |
World-Class Education | Studying in a foreign country like the USA, UK, Canada, and Australia allows students to study at top universities in the world. The faculties of these universities teach real-life skills to students and make them job-ready after graduation. |
Benefits of a High CIBIL Score
How to improve your CIBIL score?
Have a mix bag of loans | If a borrower takes too many unsecured loans then the bank sees it as negative and may even decline the loans. Therefore, one must have both unsecured loans and secured loans. |
Monitor CIBIL Score Regularly | All credit rating agencies provide annual free credit report by looking at which students can check for any errors. They will get to know if they have forgotten any loan payment. One can make sure that they have a good credit history. |
Never withdraw cash with credit card | Many times students might think that withdrawing cash with credit card is same as debit card but it’s not true. Students might be charge a higher interest rate for the money withdrawn through credit card. |
Timely Repayment | 33% of the credit score comes from the payment history hence one must make the timely payments. One can also download apps that remind them of the payment. Another way to avoid delay payments are to set up automatic payments through which the payment will automatically be deducted from the account. In this method you just have to make sure that there is minimum balance. |
How are interest rates determined by banks?
CIBIL Score | CIBIL score is the primary factor considered when giving loans to borrowers. A high CIBIL score lets the borrower get an education loan at a lower interest rate. |
Repayment Tenure | While it doesn’t apply to all the banks some loan providers may charge interest rates if it requires a long duration. |
Relationship with the bank | Banks or financial institutions may offer lower interest rates for existing customers. |
Type of Loan | The interest rate also varies according to the type of loan the borrower is availing. Further interest rates also vary whether the loan is secured or unsecured. |
Interest Rates of Different Banks for Study Abroad Education Loan
Name of the Bank | Interest Rate Offered | Maximum Loan Amount | Repayment Tenure |
ICICI Bank | 9.50% to 14.75% | Rs. 2 Crore | • Up to 10/12 years for Under Graduate • Up to 12/14 years for Post Graduate |
HDFC Credila Bank | 13.80% | No Upper Limit | 12 years |
Axis Bank | • 15.20 Upto 4 Lakhs • 14.70 for loans between 4 lakhs and 7.5 lakhs • 13.70 for loans greater than 7.5 lakhs | No Upper Limit | 15 years for unsecured loans |
How does the CIBIL Score impact interest rate?
How does CIBIL Score impact the amount of loan?
What impact does CIBIL have on disbursal TAT?
Speedy Approval | A high CIBIL score indicates the creditworthiness of the borrower, ensuring trust and speedy approval of loans. |
Lower Interest Rates | Borrowers with high CIBIL scores can get loans at much lower interest rates. |
Flexible Repayment Options | A good CIBIL score allows the borrower get flexible terms of repayment schedule and loan duration. |
Repayment Ability Indicator | Banks use the CIBIL score to determine the repayment ability of the borrowers. |
Conclusion
FAQ
Get great articles direct to your inbox
The latest news, articles, and resources, sent straight to your inbox every month.
Popular Universities to Study Abroad
World class education waiting for you.
![University of York logo](https://www.canamgroup.com/assets/universitylogos/1710759880-University-of-York.webp)
![Navitas Group - SAE Institute - Adelaide Campus logo](https://www.canamgroup.com/assets/universitylogos/1686026475-SAE-logo.png)
Navitas Group - SAE Institute - Adelaide Campus
South Australia, Australia • 24 Programmes
Tuition Fee : AUD 27500-33000 / year
![British Columbia Institute of Technology - Annacis Island Campus logo](https://www.canamgroup.com/assets/universitylogos/1658989766-british-columbia-institute-of-technology.png)
British Columbia Institute of Technology - Annacis Island Campus
British Columbia, Canada • 2 Programmes
Tuition Fee : CAD 17000-20000 / year
![Sprott Shaw College - Penticton College Campus logo](https://www.canamgroup.com/assets/universitylogos/1681536757-Sprott-Shaw-College-Logo-PNG.png)
Sprott Shaw College - Penticton College Campus
British Columbia, Canada • 19 Programmes
Tuition Fee : CAD 10000-38000 / year
![Study Group - Royal Holloway University of London International Study Centre logo](https://www.canamgroup.com/assets/universitylogos/1695796977-Royal-Holloway,-University-of-London-International-Study-Centre.webp)
Study Group - Royal Holloway University of London International Study Centre
England, UK • 261 Programmes
Tuition Fee : GBP 18000-19000 / year
![Hillsborough Community College - Plant City Campus logo](https://www.canamgroup.com/assets/universitylogos/1691388187-Hillsborough-Community-College-Brandon-Campus.webp)
Hillsborough Community College - Plant City Campus
Florida, USA • 40 Programmes
Tuition Fee : USD 9000-12000 / year
![Tamwood International College - Vancouver Campus logo](https://www.canamgroup.com/assets/universitylogos/1658991001-tamwood-international-college.png)
Tamwood International College - Vancouver Campus
British Columbia, Canada • 8 Programmes
Tuition Fee : CAD 8500-19000 / year
![University of Oregon logo](https://www.canamgroup.com/assets/universitylogos/1715059352-University-of-Oregon.webp)
Popular English Language Proficiency Exams
Blogs and Articles
Curated content to keep you updated on the latest education trends, news and more.
Updated on • Jul 26,2024 05:14 PM IST • Study in Canada
CELPIP Writing Section: Email Writing Task 1
Updated on • Jul 26,2024 03:30 PM IST • CELPIP
Updated on • Jul 26,2024 01:06 PM IST • Study in Ireland
Updated on • Jul 25,2024 05:28 PM IST • Study in Germany
Improve IELTS Listening Skills
Updated on • Jul 25,2024 05:22 PM IST • IELTS
Updated on • Jul 25,2024 03:08 PM IST • study in the UK
Complete Undergraduate Admissions Guide to Study in Germany
Updated on • Jul 23,2024 01:59 PM IST • Study in Germany
10 Part-time Jobs in UK for International Students
Updated on • Jul 23,2024 01:47 PM IST • study in the UK
Part-time Jobs in Canada for International Students
Updated on • Jul 20,2024 12:52 PM IST • Study in Canada
IELTS Speaking Part 1 Topics and Questions
Updated on • Jul 16,2024 05:46 PM IST • IELTS
F-1 visa for international students: Eligibility, Application, Requirements and Process
Updated on • Jul 16,2024 04:37 PM IST • USA
Top 10 Benefits of Studying in Australia for Indian Students
Updated on • Jul 15,2024 05:41 PM IST • Australia
How Can Overseas Study Experience Help You In Your Career?
Updated on • Jul 15,2024 03:31 PM IST • Study Abroad
Updated on • Jul 13,2024 05:59 PM IST • Study in Germany
Updated on • Jul 12,2024 05:59 PM IST • USA
Benefits of 1+1 Programs in Canada
Updated on • Jul 12,2024 04:06 PM IST • Study in Canada
Facts to Know Before Studying in Australia
Updated on • Jul 12,2024 03:38 PM IST • Australia
Australian Student Visa Interview Questions and Answers
Updated on • Jul 11,2024 03:26 PM IST • Australia
TOEFL Accepted Universities in USA
Updated on • Jul 08,2024 05:49 PM IST • TOEFL
Why take Study Abroad Counselling?
Updated on • Jul 08,2024 05:30 PM IST • Study Abroad
Related Blogs and Articles
A little effort to provide an authentic and reliable content for keen readers!!
Education Loan Against Property for Studying Abroad
Updated on • 28-05-2024 • Education Loans
Student Education Loan to Study in Canada - Eligibility, Documents Required, How to Apply
Updated on • 18-05-2024 • Education Loans
Education loan with Collateral to Study Abroad
Updated on • 01-05-2024 • Education Loans
Study Loan for Canada : A Complete Guide
Updated on • 18-03-2024 • Education Loans
Foreign Education Loan Approval Factors: Program Type and Country
Updated on • 28-02-2024 • Education Loans
Difference between Private banks, Public banks and NBFCs
Updated on • 15-01-2024 • Education Loans