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Maharashtra leads in education loan disbursals over three years, SBI tops bank rankings

Data presented in Rajya Sabha shows public sector banks heavily funding higher education between 2022-23 and 2024-25, with southern states dominating and repayment challenges surfacing in several high-loan regions.

Pragya Kumari 13 August 2025 11:11

Maharashtra leads in education loan disbursals over three years, SBI tops bank rankings

Maharashtra has topped the list of states receiving education loans from public sector banks over the past three years, with Kerala, Andhra Pradesh, and Tamil Nadu following closely, government data shows.

Details tabled in the Rajya Sabha reveal that between 2022-23 and 2024-25 (provisional), banks sanctioned loans worth ₹11,426.47 crore in Maharashtra, ₹8,937.78 crore in Kerala, ₹8,101.06 crore in Andhra Pradesh, and ₹7,198.63 crore in Tamil Nadu.

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At the other end of the scale, Lakshadweep saw just ₹0.17 crore sanctioned, while Mizoram and Arunachal Pradesh recorded ₹9.93 crore and ₹10.40 crore respectively.

Responding to a query from MP Neeraj Shekhar, Minister of State for Finance Pankaj Chaudhary said the State Bank of India dominated the education loan market during this period, disbursing ₹32,311 crore, almost triple the amount sanctioned by Union Bank of India, which stood at ₹14,559 crore.

Bank of Baroda ranked third with ₹8,469 crore, followed by Canara Bank at ₹7,094 crore and Punjab National Bank at ₹5,005 crore.

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Telangana, Karnataka, Uttar Pradesh, and West Bengal also featured among states with significant education loan activity, highlighting strong nationwide demand for financing higher studies.

Despite the large disbursals, repayment remains a challenge. As of March 2025 (provisional), SBI reported ₹336 crore in gross non-performing assets on education loans, while Punjab National Bank had ₹431 crore, Canara Bank ₹322 crore, and Indian Bank ₹277 crore.

The figures point to an increasing reliance on bank loans for funding higher education, coupled with a need to address repayment concerns in states with high exposure.

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