Releasing the report, Harshala Chandorkar, chief operating officer, Cibil told reporters on Tuesday that, "Like any other loan, it is vital to know that education loan is credit facility provided to help one pursue higher education. Loans have to be paid once one completes their course and gains employment. Like any other loans and credit cards, education loans are reported to Cibil and get reflected in borrower's Cibil report and impact Cibil TransUnion Score".
Duly paying your education loan low interest installments on time, each month, is the best thing that could be done to maintain a healthy Cibil report and a good Cibil TransUnion Score, Harshala maintained. The Cibil TransUnion Score and Cibil Report have become one of the most important parameters for credit institutions to make lending decisions. Cibil data also indicates that more than 90% of new credit is sanctioned to borrowers above a score of 750.
Banks and financial institutions today consider the score as a crucial parameter before sanctioning any new loan. It is important that borrowers therefore access their Cibil Report and Cibil TransUnion Score regularly to assess their own creditworthiness. About 130,000 education loan accounts were opened in Q4 2014. Average sanctioned education loan amount in fourth quarter of 2014 was Rs 6 lakhs, while in the same period of 2013 it was about 4.5 lakhs, she said.