Responsibility. A Single word with a lot of weightage. And it’s not mere a thing. One is characterized by the number of responsibilities that they have taken care for. And now, while taking about financial responsibilities, one really has to make sure that the credits that they have taken should be taken care for and paid at the right time.
Else, they can be a living nightmare for anyone. In the present day, taking credits or loan has become very common and to a huge extent, it is easier done than said. You can live your future dream today with the help of credits and loans. When it comes to higher education or studying abroad, it works as a boon. Not everyone can afford that education cost when it comes to higher education or abroad studies and hence it works perfectly fine!
But as spoken, one should also understand the responsibility when the education loan is taken. The usual repayment when it comes to educational loan is usually six months after the studies are completed or two months after the job starts of which whichever is earliest. Even if one starts a basic job, if maintained the finances nicely, loan repayment won’t be that of a difficult task. However, if not taken seriously and when any of the above mentioned two factors come in actual, the banks would be expected the individual start repaying the amount. If not done so for two of the monthly cycles, the education loan account is considered into “delinquent” account. And if depending on the bank one has taken a loan from, after 270 days or 360 days the account goes to “default” making huge crush in the credit score.
Once the default is made to the loan account, you definitely fall in loan defaulter list. And one got down there, the journey of finances are on a toss. You can’t get a loan or a credit card sanction easily. Even if you get, you will have to pay a lot of interest in the actual cost. And when it is about the loan that is taken for education, the major and massive loss that one may have to conquer is of their dream jobs. When of course the loan is taken, it will be for a big course and not that of a usual one. So, the job one would be doing after that will also be that of better posts. There, the employer will surely ask about the course and its details. Also, when a higher post is offered, the employer does have an authority to check the credit score. In such case, if they come to know that the score is low, or there is a default on your education loan, you have a risk of losing that job as the low score or the default shows lack of calculations and less responsible behavior against something. And this is highly not appreciated in corporates, as this gives them an idea about the individual’s negligent behavior.
What can then be done in such case? If the reason is genuine, don’t be ashamed. Go to banks, tell them your story about why and how it had been difficult for you to repay the loan. Be responsible enough and start repaying even the smallest possible amount against the loan. Start today, to make a better tomorrow as they say: and that’s actually how it works. When asked from an employer, tell them upfront about the financial crunch that you faced and how are you going to cope up with that. Truth is a big thing and if the employers feel that what you are saying is true and you are a person who could be trusted upon even for a while, bingo!