Some of the common ways of funding higher education is through using family savings, borrowing from friends and relatives, selling assets like land, gold etc or taking an education loan . Earlier, it was believed that only people from the middle- income group choose to fund their education through student/education loans. With benefits of an education loan coming to the fore and specialists like Credila offering doorstep service, many affluent families are also opting for an education loan and availing of exclusive benefits like:
Hence, education loans have clear advantages over using personal finance
Usually, middle-income group people apply for education loans. However, because of:
With the advantages of an education loan coming to them therefore, even affluent families are choosing an education loan over self finance.
With such a young population and one of the largest pool of students coupled with rising cost of education is only fueling the demand of education loans in India
We believe that going forward the education finance will largely consists of:
Yes, they should avail loan even if they have money. The reasons are explained in earlier questions