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Education loans set to be one of the fastest-growing segments for NBFCs: Crisil Report

The Business Guardian

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September 09, 2024

Education loans, primarily those to fund courses overseas, will continue to be among the fastest-growing segments for non-banking financial companies (NBFCs) because of rising demand for higher education, said Crisil Ratings.

Their assets under management (AUM) is expected to grow at a healthy clip of 40-45 per cent to cross Rs 60,000 crore this fiscal, as per the rating agency.

By definition, the assets under management (AUM) is the market value of the investments managed by the entities. After robust growth of over 80 per cent and 70 per cent in fiscals 2023 and 2024, respectively, NBFCs' education loan assets under management (AUM) rose to Rs 43,000 crore as on March 31, 2024.

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