Very few urban households take education loans

The percentage of urban households availing of education loans is 0.55%

The second part of the Indian Financial Scape survey, conducted by Delhi-based economics research firm Indicus Analytics, tracks patterns of debt usage by urban India. In its second instalment, we look at education loan usage by urban Indians. The data is split across income groups and regional variations. At least 35,000 households were surveyed across urban India over the period April-June 2012. Overall, urban India takes few education loans with just 0.55% of the households using the facility. The income group 10-20 lakh in the western region reported the highest usage in percentage terms at 1.2%. The lowest being 0.04% reported by southern region corresponding to the income level of 75,000 and below. Among the four regions, western and northern regions use the facility the most with the average being 0.56% and 0.77%, respectively.

Key takeaways:

1. Across India, the percentage of urban households availing of education loans is 0.55%.

2. Western and northern regions are relatively better off in terms availing the facility.