The ticket-size of educational loans in India has risen 47% in the last fiscal year despite a fall in the number of students seeking assistance, illustrating that top university and college programmes are becoming increasingly costlier in the country.
Loan disbursals climbed 9.25% in FY18 to touch a portfolio size of Rs 82,600 crore as of March 2018, said a report by credit bureau CRIF HighMark. The number of students availing loans has fallen 7% to 2.5 lakh.
Public sector banks continue to dominate the education loan space, with nearly 83% market share, a decline from 90% last year. A top official from State Bank of India, said that both ticket sizes and volumes had been going up at SBI. “We have nearly 30% market share and we don’t focus on a particular segment. And we meet more than 95% of the disbursement targets set by the government.”