Indian banks are going slow on sanctioning education loans. Government data show that around 8% of such loans issued by them till the June quarter were non-performing assets (NPAs)—that is, 6,246 crore rupees ($767 million) out of Rs79,900 crore.
Indian Bank registered the highest NPA on education loans at more than 29%, followed by UCO Bank (18%).
Education loans NPA: Government Bank Wise Data
| Banks | Outstanding | NPA |
| Indian Bank | Rs.4,721 crore | Rs.1,380 crore |
| UCO Bank | Rs.1,036 crore | Rs.188 crore |
| Indian Overseas Bank | Rs.4,046 crore | Rs.716 crore |
| Central Bank of India | Rs.3,484 crore | Rs.587 crore |
| Bank of India | Rs.2,774 crore | Rs.382 crore |
| Punjab National Bank | Rs.7,387 crore | Rs.969 crore |
| Canara Bank | Rs.13,193 crore | Rs.512 crore |
| State Bank of India | Rs.27,027 crore | Rs.603 crore |
Education Loan NPA Private Banks
Private sector banks accounted for only around 7% of total outstanding education loans, while regional rural banks had 3% at end of March 2020, a Reserve Bank of India research paper show.
Reason for Education Loan NPA
The main reason for defaults is poor employment. In 2022, thousands were laid off at several multinational companies and startups.