Education Loan: It is very important to have a good CIBIL score to get a loan from a bank. Many times students do not get education loan from the bank due to not having a good CIBIL score. Now the Kerala High Court has made an important comment regarding this. Reprimanding the banks, Justice PV Kunhikrishnan said that students cannot be denied education loans on the basis of low CIBIL score. He asked the banks to take a humane approach to the applications for education loans.
According to a report by LiveLaw, the Kerala High Court was hearing a PIL filed in this matter. The court said that the country is built by the students. Rejecting a student’s education loan application only on the basis of a low CIBIL score is wrong. Banks also need to pay attention to the human aspect in this matter.
What is the whole matter?
Significantly, the petitioner student had taken a total of two loans, out of which Rs 16,667 was overdue in one loan. For this reason the bank had put the student’s loan account in overdue. This had a bad effect on the CIBIL score of the student. After this, on applying for a loan in the bank, he was not getting the education loan due to his low CIBIL score. According to the report, in such a situation, the student filed a petition in the High Court urging that he should get a loan from the bank immediately, otherwise he may face a lot of trouble. In such a situation, the Kerala High Court said on this matter that banks should give education loan on the basis of student’s ability to repay the loan in future instead of CIBIL score.
Take care of CIBIL score
You may need to take a loan many times in life. Before giving this loan, education loan, home loan, car loan etc., the bank checks the CIBIL score of that person. If your CIBIL score is not correct then you may have trouble getting the loan. Due to low CIBIL score, many customers get loans at higher interest rates. To keep the CIBIL score correct, pay all your loan and credit card bills on time. Along with this, avoid becoming someone’s loan guarantor because if that person does not repay the loan amount on time, which will also affect your CIBIL score.
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