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Education Loans Booming Despite Rising Non-Performing Assets
July 31, 2017
Banks seem to be undeterred by the fact that education loans have increased Non-Performing Assets by as much as 10% as more students are not repaying their education loans. This is because, despite all this, lenders continue to offer education loans liberally, which lead to a Rs. 20,000 crore disbursal in total during the financial year 2016-17. The net disbursal during the financial year 2015-16 was Rs. 17,000 crore.
According to a Crif High Mark report, NPAs in the education loans segment increased by 21% in FY 2017, thus spiking the NPA ratio to 10.2%. It also said that the average education loan amount has jumped to Rs. 6.8 lakhs from Rs. 3.25 lakhs of 5 years ago.
