Education loans: How to choose from banks, NBFCs and fintechs
While interest rate is the primary deciding factor, borrowers should also consider the margin amount, repayment tenure and the moratorium period
February 11, 2021 / 07:42 PM IST
The rising cost of education means that funding requirements have increased. According to data from GrayQuest, an education fintech company, the average Indian household spends 13 percent of its annual income on higher education fees per child. So, if you have two children, 26 percent of the annual income goes towards financing the education.
“With rising higher education fees and the growing aspirations of parents in their choice of education for their children, paying education fees is now a significant expenditure for most households,” says Rishab Mehta, Founder and CEO, GrayQuest. The COVID-19 pandemic has further increased the financial burden on parents, and so they are looking for education loan options, he says.