Education loan growth rate dips from 17% to 2%, NPAs jump from 5.5% to 7.5%

The growth rate of education loan declined to 2 per cent in 2017 from 17 per cent in 2015 and non-performing assets (NPAs) of public sector banks (PSBs) in the segment increased to 7.7 per cent from 5.7 per cent during the period, CARE Ratings said on Thursday.

The education loan market is estimated to be Rs 733 billion. Of this, 95 per cent is funded by PSBs. Cooperative banks offer education loans worth around Rs 20 billion and non-banking financial companies (NBFC) provide around Rs 50 billion.

“The growth rate has declined because of delinquencies experienced by PSBs and