Education loan defaults may hurt students' credit score: CIBIL

Pointing to high incidence of defaults in the low-ticket education loans, credit information company CIBIL on Thursday said such default history might adversely affect students’ credit score and their ability to take out other loans in the future.

The overall incidence of delinquency on education loans is around 5 per cent, going by dues of 90 days plus. The default rate for education loans with ticket sizes below Rs 4 lakh is significantly higher (at 8.1 per cent) compared with large-ticket size loans, CIBIL said in a statement. Comparative default rates for other categories are: Rs 4-5 lakh — 4.8 per