Maharashtra, Kerala, Andhra Pradesh Lead in Education Loan Uptake; SBI Tops Lenders
The demand for education loans in India has seen a steady surge, with Maharashtra, Kerala, and Andhra Pradesh emerging as the top-performing states in terms of loan disbursement and application volumes. According to recent banking sector data, these states together account for a significant share of the total education loan portfolio in the country.
Why These States Lead in Education Loans
High Student Outflow for Higher Studies Abroad – Kerala and Andhra Pradesh have a long-standing trend of students pursuing overseas education, especially in countries like the USA, UK, and Canada.
Strong Urban-Rural Education Aspirations – Maharashtra, with its metro cities like Mumbai and Pune, sees high demand for domestic and international course financing.
Government Schemes & Subsidies – State-specific interest subsidies have encouraged more applications.
SBI Dominates the Education Loan Market
The State Bank of India (SBI) continues to hold the largest share in the education loan segment. SBI’s flexible repayment terms, interest concessions for girl students, and tie-ups with reputed institutions have made it a preferred choice for borrowers.
Other major lenders in this sector include Bank of Baroda, Canara Bank, and Punjab National Bank, but SBI’s reach and trust factor give it a competitive edge.
Key Trends in Education Loan Growth
Rise in Overseas Applications – 2024 saw a double-digit growth in foreign university applications from Kerala and Andhra Pradesh.
Shift to Digital Loan Processing – Banks and NBFCs have increased online application approvals, reducing loan sanction time.
Growth in Private Sector Participation – Non-banking financial companies are offering quicker approvals but at slightly higher interest rates.
Vizzve Finance Insight
At Vizzve Finance, we track these trends closely to help students and parents make informed borrowing decisions. Our platform connects you with the right lenders, offers comparative interest rate analysis, and provides step-by-step guidance for both domestic and international education financing.
Frequently Asked Questions (FAQs)
Q1: Which states top India’s education loan uptake?
Maharashtra, Kerala, and Andhra Pradesh are currently the leading states in education loan applications and disbursals.
Q2: Why does SBI lead the education loan segment?
SBI offers lower interest rates for certain categories, a wide network, and specialized schemes for overseas education, making it the most trusted lender.
Q3: Are private lenders a good option for education loans?
Yes, especially for quick approvals or when banks have stricter eligibility criteria, though interest rates may be slightly higher.
Q4: How can students reduce their education loan interest burden?
Students can opt for moratorium repayment plans, pay partial interest during the course, and apply for state/federal subsidies.
Q5: Does Vizzve Finance help with overseas education loans?
Absolutely. Vizzve Finance partners with leading banks and NBFCs to help students secure funds for global education needs.
Published on : 13th August
Published by : Selvi
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