Education from a renowned institute is often considered an important stepping stone, leading the way to a successful career. However, the cost of education is increasing rapidly and an education loan seems like a great option for parents and students who may be short on funds. In fact, given the strengthening of the dollar against the rupee, an education abroad has become phenomenally expensive as well. This trend also reflects in data from TransUnion CIBIL, where we have seen a 48% rise in the average ticket size of a newly-opened education loan going up from INR 5.73 lakhs in 2015 to INR 8.5 lakhs in 2018.
If you are considering an education loan to help finance your child’s higher education, here are some things you should keep in mind, before you decide:
Keep these points in mind, and you can easily plan your child’s education without a worry. Timely repayment of the education loan will eventually build a healthy credit profile, not only for your child but for you too.
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Disclaimer: The information posted on this blog (Information) is prepared by TransUnion CIBIL Limited (TU CIBIL). This Information is for generic informational purposes only and is meant for consumer education and awareness about credit scores, credit history and credit reporting. The Information posted on the blog does not constitute credit advice and the user will need to consider the same and take independent informed decisions . No part of this Information may be quoted out of context, distorted ,distributed, published and/ or reproduced in any form and manner whatsoever. Consumers are advised that the Credit Information Reports (CIRs) prepared by TU CIBIL are based on collation of information, substantially, provided by credit institutions who are members with TU CIBIL. TU CIBIL is not responsible and /or liable for errors and/or omissions caused by inaccurate or inadequate information submitted to it by credit institutions. TU CIBIL does not guarantee the adequacy or completeness of the Information and/or its suitability for any specific purpose nor is TU CIBIL responsible for any access or reliance on the Information. TU CIBIL expressly disclaims all such liability. Further, this Information is based on the data available with TU CIBIL at the time of publication and therefore may not be up-to-date.