Job market squeeze: Education loan defaults rise 30% in Uttar Pradesh

The NPAs during 2014-15, 2015-16 and 2016-17 stood at Rs 1.42 bn, Rs 2.25 bn and Rs 2.51 bn respectively

The domestic job market squeeze has started to hit the education loan portfolio of commercial banks with defaults in this priority lending segment in Uttar Pradesh registering almost 30 percent rise in the first six months (Apr-Sep) of the current fiscal 2017-18.

Against the non-performing assets (NPA) in the education loan space of UP standing at 7.63 per cent at the end of March 2017, the NPAs have already clocked 9.92 per cent during the first two quarters of 2017-18, thus soaring by almost 30 per cent.

In value terms, NPAs which stood at Rs 2.51 billion at the end