Rising fees of private universities in India and abroad, and with the US processing student visas faster, giving a boost to student interest, the disbursals in education loans have seen a marked rise in Gujarat. In the first quarter of FY 2025, education loan disbursals went up by 28% in the state, according to the latest report by the State Level Bankers’ Committee (SLBC) Gujarat.
Some 7,385 candidates sought education loans in Q1 FY 2025, up from 5,144 in the same quarter of FY 2024, marking a rise of about 44%. Against Rs 364 crore in Q1 FY 2024, education loan disbursals increased to Rs 466 crore in Q1 FY 2025. In FY 2024 alone, loan disbursals increased 55%.
Banking sector and foreign education experts attribute this increase to the rising number of foreign education aspirants, more universities opening doors to Indian students, rising fees in private universities in both India and abroad, and better prospects for work opportunities.
“The uptakes for foreign education saw a marked rise during the first quarter. This is due to multiple factors including the prompt processing of visa applications for students by several countries, including the US. That apart, a general uptake for foreign education for both postgraduation and undergraduate programmes is high,” said a foreign education consultant.
Bankers attributed this to the rising awareness about better prospects of going abroad.
“Banks are also offering an increasing number of schemes for education loans providing collateral-free loans and competitive interest rates. Many a time, banks identify universities of repute and if students secure admission in these universities, loans are easily available,” said a senior SLBC official, requesting anonymity.
“Besides the increase in the number of applicants, the average ticket size for education loans has also gone up. This is primarily because of the hike in fees levied by private universities in India and abroad and the overall higher cost of living abroad,” the official further added.
Over and above the US and Canada, where a majority of Gujarat-based students go for study, several other destinations like the UK, New Zealand, Australia, Singapore, Germany, and the Netherlands, among others, are also gaining traction.
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