Sneha was very happy. Finally, she was going to buy her dream car Honda Jazz New in this Monsoon season. Working in a reputed IT company, she was earning a handsome salary package. She had applied for a Car Loan through online loan portals. After 3 days of her loan application, she got shocked as the bank had rejected her loan. She thought that it could be due to the confusion in her current address. After a long conversation with the banker, she got to know that the reason was her low CIBIL Score. Her credit score was low because she had not repaid her Education Loan EMIs timely. This default had affected her credit history. Neglecting this loan has shattered her dream of buying a car.
Education Loan is as important as we consider other loans. Most of the times, customers neglect the repayment of education loan after getting employment. As other loans affect your credit history, education loan also has an impact on your credit score. Education Loan is a scheme that provides a financial help to the students for pursuing higher studies. Students have to repay this loan after completing the studies or after getting a job. According to the criteria of banks or NBFCs, the repayment of education loan starts within the six months of getting a job or after 1 year of the course.
If you miss the EMIs of Education Loan, it will be counted as a default and this default can curse you during the different milestones of your life when you need a loan. It can impact your dream of buying a car, having your own home or availing any financial help from the financial institutions.
Credit Score is a vital aspect of one’s life. It will play an important role in each and every financial moment of your life. So maintain a good track record of your credit history. Make your credit report card look good. Repay your EMIs timely. You should act wisely while taking your financial decisions. Start saving for your monthly EMI and achieve financial stability in your life.
It is better to plan for your financial futures rather than getting trapped in a money crunch. So think early and act wisely.
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