In Gujarat, education loan payments have been hampered by the pandemic’s uncertainty, travel restrictions, and sour sentiment following the second and worst wave of Covid.
According to the latest report from the statewide Bankers Committee (SLBC) state Gujarat, education loans worth Rs 283 crore were disbursed during the September 2021-22 quarter, down 60% from Rs 689 crore in the corresponding quarter of 2019-20 – during the pre-Covid period.
According to bankers, foreign aspirants for education account for about 65% of the total education loan payments, and with the increase in restrictions due to the epidemic situation, there is a clear shift in student preference for foreign education.
“Due to the larger ticket size, study abroad loans account for at least 65% of the total education loan portfolio.”
Many students have been unable to pursue their dream of a foreign education due to the pandemic, restrictions on international travel, and the issuance of student visas.
One of the main reasons for lower overall concessions for education loans, according to MM Bansal, Regulator, Gujarat Statewide Bankers Commission.
“People have been more reluctant to send children to pursue education abroad as psychological repercussions have increased since the first quarter saw a second, worse wave of Covid,” Bansal continued. As a result, the applicant pool has shrunk.”
Only 14% of targeted payments for education loans under the Service Area Credit Plan (SACP) had been extended by the end of the second quarter of 2021-22, according to the latest report from the State Bankers Commission.
It should be noted that overall enrollment rates for foreign education have increased since the first quarter.
However, in comparison to pre-Covid levels, the benefits are minor.