Is Maharashtra Leading in Student Loan Disbursals with SBI?
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Synopsis
Public sector banks are increasingly supporting higher education in India, with SBI leading disbursals. Maharashtra tops the state-wise charts, revealing a growing reliance on bank loans and the need for robust repayment strategies.
Key Takeaways
- SBI is the top bank for education loan disbursals.
- Maharashtra leads among states in loan amounts.
- Significant demand for education financing across India.
- Repayment challenges persist, highlighting the need for improved mechanisms.
- Smaller states show very low loan disbursal activity.
New Delhi, Aug 12 (NationPress) In the last three years, public sector banks have significantly invested in supporting higher education across India, with State Bank of India (SBI) taking the lead in loan disbursals and Maharashtra ranking first among states.
Data shared in the Rajya Sabha by Minister of State for Finance Pankaj Chaudhary indicates that SBI disbursed an impressive Rs 32,311 crore in education loans from FY 2022-23 to 2024-25, almost three times more than its closest rival, Union Bank of India, which sanctioned Rs 14,559 crore.
Bank of Baroda came in third with Rs 8,469 crore, followed by Canara Bank at Rs 7,094 crore and Punjab National Bank at Rs 5,005 crore. In terms of state disbursals, Maharashtra led with Rs 11,426 crore, while Kerala was second with Rs 8,938 crore, and Andhra Pradesh third at Rs 8,101 crore. Tamil Nadu (Rs 7,199 crore) and Telangana (Rs 6,179 crore) completed the top five.
Additionally, the data showed notable lending in Karnataka (Rs 5,721 crore), Uttar Pradesh (Rs 3,461 crore), and West Bengal (Rs 3,156 crore), indicating a strong demand for education financing nationwide. Conversely, smaller states and Union Territories exhibited low activity, with Lakshadweep receiving only Rs 0.17 crore, while Mizoram and Arunachal Pradesh received Rs 9.93 crore and Rs 10.40 crore, respectively.
Despite this substantial lending, repayment issues remain. As of March 2025 (provisional), SBI reported Rs 336 crore in Gross NPAs for education loans. Other banks on the list included Punjab National Bank (Rs 431 crore), Canara Bank (Rs 322 crore), and Indian Bank (Rs 277 crore).
This data underscores the increasing dependence of Indian students on bank financing for higher education and the critical need to enhance repayment strategies, particularly in states with significant loan amounts.
Point of View
It is evident that the substantial rise in student loans highlights both the growing reliance on financial institutions for higher education and the persistent challenges in repayment mechanisms. The data calls for immediate action to strengthen these systems, ensuring students can benefit effectively from the support provided.
NationPress
01/09/2025
Frequently Asked Questions
Which bank is leading in student loan disbursals in India?
The State Bank of India (SBI) is the leader in student loan disbursals, providing a staggering Rs 32,311 crore in education loans over the last three years.
Which state recorded the highest education loan disbursals?
Maharashtra topped the state-wise charts by disbursing Rs 11,426 crore in education loans.
What are the repayment challenges faced by student loan borrowers?
Despite significant lending, repayment challenges persist, with SBI reporting Rs 336 crore in Gross NPAs for education loans.
What is the total amount disbursed by Union Bank of India?
Union Bank of India sanctioned Rs 14,559 crore in education loans, making it the second-highest disbursing bank.
How do smaller states fare in education loan disbursals?
Smaller states and Union Territories have seen minimal education loan activity, with Lakshadweep receiving just Rs 0.17 crore.
