NewKerala.com

Key Points

Public sector banks, led by SBI, have significantly boosted education loan disbursals over the past three years. Maharashtra emerged as the top state, receiving Rs 11,426 crore, followed by Kerala and Andhra Pradesh. Despite the surge in lending, repayment challenges persist, with SBI reporting Rs 336 crore in NPAs. The data highlights both the growing demand for education financing and the need for stronger repayment mechanisms.

Key Points: SBI Leads Maharashtra in Student Loan Disbursals Over 3 Years

  • SBI dominates with Rs 32,311 crore in student loans
  • Maharashtra tops states with Rs 11,426 crore disbursed
  • Kerala and Andhra Pradesh follow closely in loan approvals
  • NPAs remain a concern with SBI reporting Rs 336 crore in defaults
2 min read

Maharashtra, SBI lead in student loan disbursals over three years

SBI disbursed Rs 32,311 crore in education loans, with Maharashtra topping state-wise charts. Kerala, Andhra Pradesh follow in higher education financing.

"SBI disbursed Rs 32,311 crore in education loans, nearly three times higher than Union Bank of India – Pankaj Chaudhary, MoS Finance"

New Delhi, Aug 12

Public sector banks have pumped in massive funds to support higher education in India over the past three years, with State Bank of India (SBI) emerging as the undisputed leader in disbursals and Maharashtra topping the state-wise charts.

According to data presented in the Rajya Sabha by Minister of State for Finance Pankaj Chaudhary, SBI disbursed a whopping Rs 32,311 crore in education loans between FY 2022-23 and 2024-25, nearly three times higher than its nearest competitor, Union Bank of India, which sanctioned Rs 14,559 crore.

Bank of Baroda followed in third place with Rs 8,469 crore, trailed by Canara Bank at Rs 7,094 crore and Punjab National Bank at Rs 5,005 crore. In the state-wise tally, Maharashtra recorded the highest education loan disbursals, receiving Rs 11,426 crore during the period. Kerala stood second with Rs 8,938 crore, closely followed by Andhra Pradesh at Rs 8,101 crore. Tamil Nadu (Rs 7,199 crore) and Telangana (Rs 6,179 crore) rounded off the top five.

The data also revealed significant lending in Karnataka (Rs 5,721 crore), Uttar Pradesh (Rs 3,461 crore) and West Bengal (Rs 3,156 crore), reflecting strong demand for higher education financing across the country. On the flip side, smaller states and Union Territories saw minimal activity - Lakshadweep, for instance, received just Rs 0.17 crore, while Mizoram (Rs 9.93 crore) and Arunachal Pradesh (Rs 10.40 crore) also had negligible disbursals.

However, repayment challenges persist. SBI, despite its massive lending, reported Rs 336 crore in Gross NPAs on education loans as of March 2025 (provisional). The List also includes Punjab National Bank (Rs 431 crore), Canara Bank (Rs 322 crore), and Indian Bank (Rs 277 crore), amongst others.

The figures highlight both the growing reliance of Indian students on bank financing for higher education and the ongoing need to strengthen repayment mechanisms, particularly in states with high loan exposure.

- IANS

Share this article:

Reader Comments

P
Priyanka N
As someone who got an SBI education loan for my MBA, I'm grateful for this facility. But interest rates are still high compared to global standards. Govt should consider subsidies for meritorious students.
A
Aman W
Why such huge disparity between states? Northeast getting peanuts while Maharashtra gets thousands of crores. This is educational inequality! Centre must ensure balanced regional development.
S
Sarah B
Interesting data! As an education consultant, I see many students struggle with loan repayments after graduation. Maybe banks should offer flexible repayment options based on salary levels?
K
Karthik V
Kerala at second position shows our Malayali's dedication to education despite being a small state! But ₹8,938 crore loans means many families are under debt pressure. Quality jobs needed to match this investment.
N
Nisha Z
Good initiative but banks need to be more transparent about loan terms. Many rural students don't understand the fine print and get trapped in debt. Financial education should start in schools!
D
David E
Impressive numbers! But as someone working in banking, I worry about the NPA situation. Maybe link loan approvals to course employability rates? Engineering graduates have highest default rates currently.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50