NBFCs' education loan growth to halve on US headwinds

For non-banking finance companies, education loans have been the fastest-growing asset class, clocking over 50% growth in the assets under management over the past few years. However, that frenetic pace of growth is set to halve this fiscal as disbursements for pursuing education in the US decelerate following a raft of policy changes in the world’s most sought after nation.

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According to a Crisil analysis, the education loan book of NBFCs grew a rapid 48% to Rs 64,000 crore in FY25. That was on a higher 77% growth in the previous fiscal. But this fiscal, growth is seen moderating to 25% with to Rs 80,000 crore, it warned on Wednesday.

This comes on the back of a 30% decline in total disbursements to the US last fiscal, leading to very tepid 8% incremental growth in education loan disbursements in FY25, compared to 50% in fiscal 2024.