Accelerating India's Education Landscape
Build Your Credit Score for a Secure Future
Deciding to opt for an education loan is a prudent choice that allows you to achieve your academic aspirations. But, repaying the loan responsibly is crucial. Managing the repayment of a loan can seem overwhelming, so it's always good to have a plan in place. Most people opt to start repaying the loan only after they graduate or once they secure a good job. But the longer you wait, the more difficult it can be to repay the amount. To get into the habit of repaying, you can start making payments while you're still in school. At Avanse, we offer three in-school payment options:
- EMI payments during the course
- Interest servicing during the course
- Partial interest servicing during the course
You can opt to pay your EMI amount while you're still in school or make small payments towards repaying your loan's interest amount every month. When you choose to do this, you develop a healthy habit of repaying your loan on time. Additionally, you can reduce your outstanding debt before you even leave college. You can use these payments to build your credit score and avoid financial issues in the future.
At Avanse, we are committed to providing you with all the information you need. When you opt for an education loan for your higher studies, you take the first step towards financial independence. As you embark on this journey, you must understand what a good credit score is and why it is vital to you and your finances.
Every time you make a financial transaction, it gets stored in your credit history. Your credit history contains details regarding your financial accounts, how long you have been maintaining them, any loans you have and whether you repay your dues promptly. Depending on your financial behaviour, your credit score gets evaluated. A higher score means you're better with your money than others.
Your current and future creditors will use this credit score to decide whether or not they should provide you with a loan. If you have a good score, you can use it to negotiate better deals. Creditors view individuals with a good credit score as less of a risk, so they're willing to offer the funds at competitive costs. When you learn how to build and maintain your credit score, you can secure your financial future.
You're about to embark on a journey that will shape your future. You've found the course and college of your dreams, but you need a little financial assistance. While applying for an education loan, you need to remember that any loan is a form of debt and you must be judicious while applying for one. So, start the process by creating an estimated expense list. Apart from your tuition fees, think about the funds you need to purchase learning devices or travel from your accommodation to the college and back. Once you've created your budget, you should stick to it. Don't take a loan of a higher amount as you'll simply have to pay it back at a later date with interest.
Before you fill out your application forms, do your research. Learn as much as you can about the university's requirements and the standard of living in the surrounding area. You will require this information while creating your expense budget for college.
Taking a loan is only the first step in your financial journey. You also need to make sure that you pay your principal amount and interest back on time. Look for a financier who creates a repayment strategy that works for you as well. Remember, this loan can help you build your credit score for the future, so you must be punctual with your instalments. Keep your lender updated on your contact details to receive all important communication and payment reminders.
A loan is a financial contract and obligation. Once you borrow the money, you must return it as per the terms and conditions. If you delay your repayment or do not pay it back at all, it will negatively affect your overall financial health!
