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Education Loan Defaults Increase by 47%
December 27, 2017
With the combined impact of a weak job market as well as increased wilful defaults of students who do have decent jobs but default on purpose, the bad loans in the education loan segment for the public-sector banks soared by nearly 47% during the period between March 2015 and March 2017.
This information surfaced recently as the finance ministry told the Lok Sabha how the Non-Performing Assets in education loans have increased from Rs. 3,536 crores in March 2015 to Rs. 5,192 crores in March 2017.
It was also found that the education-loan specific NPAs have more than doubled with at least five banks including Indian Bank, UCO Bank, etc.
