The growth in education loans has tapered down in the last financial year. The same trend is also continuing well into the current financial year. 

As per the Reserve Bank of India (RBI) data, the growth rate in the education loan portfolio of banks came down to 15.1 per cent in FY25 as against 23 per cent in FY24 and 17 percent in FY23. 

The current financial year also began on a dull note as the growth in education loans remained zero in April this fiscal. In April last year, the growth was at 23 per cent. 

A senior official of State Bank of India (SBI) said while the bank is committed to cater to the education loan requirements of the students always, it is also watching market dynamics.

“There was definitely a general slowdown in the demand for international loans last year as reflected in the data in the market though the individual experience of banks could be different,’‘ he said. 

A senior official of a major private bank said there was 40 percent dip in enquires for loans for study abroad this year compared to last year for the upcoming admission season. ``There are delays in openings for students who have already completed and repayments are yet to begin. As a consequence, due diligence process has also been further tightened.,’‘ he said.

DOMESTIC MARKET

Some banks are also stepping up focus loans for higher studies in India as job market appears to be ``better’‘ in India than abroad for now.

“We are very bullish on the domestic education loans market and are expecting some traction in this segment,’‘ Ashok Chandra, Managing Director and CEO, Punjab National Bank (PNB) said. PNB registered 10.5 percent year-on-year growth in education loans in FY25.

Published on June 30, 2025