EASY LESSONS

Education loans offer a flexible way to finance your dreams

- BY ABHINAV SINGH

The demand for education loans has risen sharply over the past decade. Public sector banks disbursed loans to 7,36,580 students in FY 2023-24, up 17 per cent from 6,29,594 students in the previous year. Loan sizes are increasing as fees at private universities are often several times higher than those at government institutions.

Education loan outstanding in India has increased by nearly 40 per cent in just three years, from ₹99,086 crore in 2023 to ₹1.37 lakh crore in 2025. However, the number of active loan accounts has fallen from 23.36 lakh in 2014 to 20.63 lakh in 2025. This suggests that while fewer students are availing education loans, those who do are borrowing larger amounts.