Cibil - Education Loan


Hi !

I will be going for my masters in fall of 2018 for which I will apply
for education loan in February’2018-march’2018.

I am working from 3.5 years and have a CIBIL score of 853.

I have a car-loan also on my name.

The problem here is that my dad has a low CIBIL score of 623 because of
some faulty payments and outstanding dues (some 5-6 lakhs).

Because we do not have any collateral for getting secured loans, I will
have to opt for unsecured-loan, for which my father will be the
co-applicant and because his CIBIL score currently is not so good, I
might face issues in getting the loan.

So, I was planning to take a personal loan on my name and clear off his debts? Will it help his credit profile?

And If I do so then at the time of applying for my education loan I will
be having two loans on my name, Personal Loan and Car Loan which my
dad will be paying (he will not have any outstanding dues If all
his debts are paid-off) once I stop working and resume my studies.

Can cibil score improve by 100 points in 3-4 months?

In case there is no chance of improvement in score what should I be doing
for getting the education loan ?

Any advice, tips will be much appreciated.



Hi Narcos,

A Personal Loan comes with higher interest rates and should be taken only if absolutely necessary. If you are not going to work when you are studying, repaying that Personal Loan might be tough. Even though it might help your father’s Credit Score if you repay his loans, it isn’t a great idea unless you have the funds to repay the Personal Loan.

One’s Credit Score does improve immediately after debt repayment. However, only timely repayment of loans can create a higher Credit Score. This takes time and may not happen within a few months. Also, most Education Loans need collateral. We suggest that you go for an Education Loan with your father as the co-borrower. If you can get a guarantor, there will be little chance of your Education Loan getting rejected. Providing collateral and a guarantor gives assurance to the bank that you are serious about repaying the Education Loan.

Want to check out our Personal Loan offers? Click here. Or if you want to know about Education Loans, click here.

BB Expert


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