AHMEDABAD: With most students either shelving foreign education plans or opting for online courses from foreign universities, disbursals for education loans have taken a hit.
Education loans worth Rs 256 crore were disbursed across 9,481 accounts during the quarter ended September. The disbursals accounted for just 13% of Rs 1,982 crore targeted to be disbursed under Service Area Credit Plan (SCAP) for the year 2020-21, states a report by the State Level Bankers’ Committee (SLBC). Against this, education loan disbursals worth Rs 698 crore took place in the same quarter of 2019-20. This means, education loan disbursals declined 63% in the second quarter, year-on-year.
Bankers attributed Covid-19 pandemic to fewer takers for foreign education this year. “Majority of education loans are disbursed to students who opt for foreign education. However, this year, due to the pandemic and travel restrictions, many students deferred their plans to study abroad. Due to this, the disbursals in the first two quarters were less,” said MM Bansal, convener, SLBC – Gujarat.
Foreign education experts said that demand did take a hit, as students deferred their admissions by a year.