Kochi | Informing that the demand for educational loan was increasing considerably, Credit Information Bureau (India) Ltd (CIBIL) Senior Vice President Harshala Chandorkar today said that as on March 31, 2015, the outstanding education credit stood at Rs 63,800 crore.
Releasing the latest data trends report by CIBIL, she said ”the data reveals that while the demand for educational loan is need based, number of new accounts opened in calendar year are almost same over the last five years, while Q3 and Q4 of each calendar year witness a spurt of education loans.
However, regarding the repayment of loans, she said delinquency on education loans had decreased over the past year. Delinquency for 90+ days amount overdue was around 3.50 per cent in Q413 which has lowered to 2.70 per cent in Q414.
Stating that about 1.3 lakh education loan accounts were opened in Q4 2014, she said the average the average sanctioned education loan amount continues to grow over time. Average sanctioned amount in Q4 of 2014 was Rs six lakh, while in Q4 of 2013 it was about Rs 4.5 lakh.However, in recent period, loans with amount less than Rs one lakh has reduced below 10 per cent of total sanctions while loans with ticket size/ amount of more than Rs five lakh had gone up to almost 30 per cent of the total sanctions, she informed.
”In Q4 2014 loans of ticket size of more than Rs5 lakh were around 30 per cent of total sanctions, while in Q4 2012 loans of more than Rs 5 lakh comprised of about 22 per cent of total sanctions, she added.Regarding the educational loan, Public sector banks stood in the first place, as their contribution in this sector was 95 per cent.
Like any other loan, it is vital to know that an education loan is a credit facility provided to help one pursue his/her higher education. The education loans have to bepaid once one completes his/her course and gains employment. Also, like any other loans and credit cards, education loans are also reported to CIBIL and get reflected in the borrowers CIBIL Report and impact the CIBIL TransUnion Score, she said.
Speaking about CIBILs Consumer Education programs, Ms.Chandorkar said, CIBIL has been conducting several consumer education programs targeting students in order to spread awareness on the need for financial discipline and its impact on their future financial aspirations. We have conducted several workshops at various academic and corporate campuses, and have received an overwhelming feedback from them.
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