Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Ramalingam

Ramalingam Kalirajan  |9699 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jun 22, 2025Hindi
Money

I am working professional. Due to unforeseen circumstances currently (June 2025) I have a crdit card written off and a few late payments history in my CIBIL. I want to apply for my german masters degree loan in March 2026. If I improve my credit history, what are the chances of getting that loan approves and what can be alternatives for me to get the loan oherwiswle. Please help

Ans: Understanding Your Situation Clearly

You are currently working professionally and want to study in Germany.

You have credit card write-off and late payment history.

You plan to apply for an education loan in March 2026.

Your concern is CIBIL score and loan eligibility.

You are seeking recovery strategy and alternatives.

Impact of Credit Card Write-Off on CIBIL Score

Write-off is a major negative mark in CIBIL report.

It signals default to banks and NBFCs.

Late payments reduce score further.

Banks usually prefer 750+ score for education loans.

A write-off entry lowers your approval chance.

Timeline is in Your Favour

You have 9 months to improve credit profile.

It is possible to fix score partially in that time.

Action must begin immediately without delay.

The earlier you act, the better your chances.

Steps to Improve CIBIL Score Quickly

Settle or close the credit card account soon.

Avoid “settled” status, aim for “closed” by paying in full.

Ask lender to update status to “closed” in CIBIL.

Pay all current EMIs and dues on time.

Don’t miss even one EMI now onwards.

Keep credit utilisation below 30%.

Don’t apply for new unsecured loans or cards now.

Check CIBIL every 2 months and track changes.

Dispute any wrong entry with CIBIL if needed.

Ask bank to give you a NOC after settlement.

Can You Still Get an Education Loan?

Public sector banks are strict on credit history.

Private banks are slightly flexible if co-applicant is strong.

Some NBFCs are lenient if admission is confirmed.

Approval depends on multiple factors:

Current CIBIL score

Loan amount

German university ranking

Co-applicant income and score

Existing liabilities and FOIR (fixed obligation to income ratio)

Increase Chances with These Practical Steps

Add a strong co-applicant like parent or sibling.

Their income and score matter a lot for approval.

Apply with public bank after pre-checking eligibility.

Keep all academic and admission documents ready.

Mention job continuity and salary proofs clearly.

Explain write-off situation with documents if needed.

Some lenders accept written explanation with plan of repayment.

Other Loan Options If Credit Rejection Happens

NBFCs giving education loans with co-applicant guarantee.

International lenders offering German education funding.

Some examples are Indian NBFCs with overseas education tie-ups.

Education loan aggregators can match your case to flexible lenders.

Peer-to-peer lending platforms also support education cases.

Take help from education loan consultants if needed.

Plan B: Use Partial Savings + Smaller Loan

Start building small emergency fund monthly.

This fund can cover initial deposit or travel.

Take a smaller loan amount if possible.

Show alternate funding proof like family help or PF.

Combine personal savings and low-ticket loan to manage cost.

Don’t Apply Randomly for Loans Now

Avoid applying for new credit till your score improves.

Multiple enquiries lower your score again.

Apply only once your profile is ready.

Check pre-eligibility with banks or aggregators first.

Co-Applicant Tips to Increase Approval

Must have regular income with stable job.

CIBIL score of co-applicant should be 750+.

Should not have other major loan burdens.

Income should support your EMI after March 2026.

Co-applicant must be ready to provide IT returns.

Timeline of Actions from June 2025 to March 2026
June to August 2025:

Settle and close all bad accounts.

Collect NOCs and update CIBIL.

Start saving and reduce card usage.

September to November 2025:

Monitor CIBIL score monthly.

Don’t delay any EMI or bill.

Prepare your admission documents and SOP.

December 2025 to February 2026:

Finalise lender based on co-applicant and eligibility.

Get co-applicant documents ready.

Apply with complete financial and academic file.

March 2026:

Apply with strong cover letter and repayment plan.

Ask for conditional sanction letter if needed.

Start visa and admission processing.

Avoid These Mistakes Now

Don’t apply to many lenders without score improvement.

Don’t hide default. It will show in CIBIL.

Don’t ignore co-applicant importance.

Don’t wait till last minute for loan process.

Don’t assume NBFCs always approve easily.

You Can Do These to Improve Outcome

Consider secured education loan if parent has property.

That lowers bank risk and increases loan chance.

Take side project or freelance work to show repayment ability.

Share bank statements to reflect saving habit.

Keep all communication transparent and professional.

Finally

Your situation is challenging but not hopeless.

You have time and control to fix credit issue.

Take firm steps today and follow consistently.

Focus on cleaning CIBIL report with written closure.

Use co-applicant strength as leverage for loan.

Avoid high-interest loans or casual lenders.

Stay disciplined with credit till March 2026.

Education is worth the effort and clean-up.

CFPs or loan consultants can guide you professionally.

Make decisions with full awareness and patience.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |9699 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 18, 2024

Listen
Money
How to get personal loan when cibil score is low
Ans: Getting a personal loan with a low CIBIL score can be challenging, but it's not impossible. Here are some strategies you can consider:

Improve Your CIBIL Score (if possible):

Check and Fix Errors: Ensure your credit report is accurate. Dispute any errors you find with CIBIL to improve your score.
Reduce Credit Utilization: Pay down existing credit card balances to bring your credit utilization ratio (outstanding credit divided by credit limit) below 30%.
Maintain a Good Repayment History: Make timely payments on all your existing loans and credit cards.
Approaching Lenders:

Focus on NBFCs and Fintech lenders: These lenders may be more flexible with credit score requirements compared to traditional banks.
Apply with a Co-applicant: Having a co-applicant with a good credit score can significantly improve your chances of loan approval and potentially get you a better interest rate.
Offer Collateral (if possible): Securing the loan with collateral like a car or fixed deposit can make it more attractive to lenders, even with a low credit score.
Negotiate Loan Terms: You might be able to negotiate a smaller loan amount or a slightly higher interest rate to get approved.
Additional Tips:

Compare Loan Offers: Get quotes from multiple lenders to compare interest rates and terms before finalizing a loan.
Borrow Only What You Need: Avoid borrowing more than you can comfortably repay.
Be Wary of High-Cost Loans: Steer clear of lenders offering very high interest rates or predatory loan terms.
Here are some resources that you might find helpful:

CIBIL Website: https://www.cibil.com/
Paisabazaar - Personal Loan for Low Credit Score: https://www.paisabazaar.com/credit-score/cibil-score-for-personal-loan/
ICICI Bank - Personal Loan with Low Credit Score: https://www.icicibank.com/blogs/personal-loan/personal-loan-with-a-low-cibil-score
Remember, a low CIBIL score can lead to higher interest rates on your loan. So it's important to weigh the cost of the loan against your needs before proceeding.

..Read more

Latest Questions
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x