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A report by CRISIL on the declining growth rate of Education Loan Assets under Management (AUM) of NBFCs was recently published, and quoted by multiple media houses. The report gives interesting statistics with respect to the scale and geographical split of these loans.
| Year | Edu Loan AUM | Growth |
| FY22 | ₹13,000 crore | 51% |
| FY23 | ₹25,000 crore | 83% |
| FY24 | ₹44,000 crore | 77% |
| FY25 | ₹64,000 crore | 48% |
| FY26(p) | >₹80,000 crore | 25% |
Trend in education loan AUM of NBFCs: [1]
Trend in geographical split of AUM: [1]
| Country | FY24 | FY25 |
|---|---|---|
| USA | 53% | 50% |
| Canada | 15% | 12% |
| UK | 15% | 20% |
| India | 9% | 8% |
| Others | 8% | 10% |
NBFCs’ Education Loan Gross NPA (%): [1]
| Period | Gross NPA (%) |
|---|---|
| FY21 | 0.3% |
| FY22 | 0.2% |
| FY23 | 0.1% |
| FY24 | 0.2% |
| FY25 | 0.1% |
One commentary read:
"Gross NPAs stood low at 0.1% as on March 31, 2025. And even after adjusting for the moratorium, gross NPAs were well under control at ~0.7%. However, high growth in the past few years and estimated ~15% of the portfolio coming out of contractual moratorium this fiscal pose some asset quality risks."
A follow up commentary read:
"Still, Crisil cautioned that around 85% of the current education loan book remains under contractual principal moratorium, and nearly 15% is expected to exit this shield in FY26, posing risks to asset quality."
