Nearly 1.2 million students benefitted from education financing over the last one year amid the covid-19 pandemic, according to a report by GrayQuest, an education financing company, published today.
There had been a three times increase in instances of parents opting for education financing owing to pandemic-induced salary cuts or business downturn, and the resultant financial constraints , the report said.
The nationwide education financing study was based on internal database of GrayQuest customers belonging to the age group of 25-55 years, during the period 25 March 2020 to 20 March 2021.
According to the study, the pandemic led to increased awareness and receptivity towards education financing and the value it brings to the table, among both schools and parents.
Rishab Mehta, Founder and CEO, GrayQuest said, “The financial constraints caused due to the pandemic has enabled parents to dedicate more time to streamlining their personal finance and efficiently take financial decisions”
The findings indicate that the pandemic fuelled tremendous and large-scale adoption of ‘Study Now, Pay Later’ by parents across the country, including tier-3 and tier-4 towns, suggesting the huge appetite in these markets. Thus, not surprisingly, the company observed equal adoption of their product in both metro and non-metro cities. Among metros, Mumbai recorded the highest number of partnerships (25%), followed by Bengaluru (12%) and Hyderabad (11.5%). Among non-metros, Pune, Lucknow and Ghaziabad saw the maximum traction in the last one year.
The study also revealed that the financial convenience of paying fees monthly and the willingness to try a new mode of fee payment, were some of the other reasons for parents opting for education financing solutions.
Further, 20% customers who opted for ‘Study Now, Pay Later’ option last year were women. There was also a six times growth in registration by women borrowers as compared to the previous year.