SRINAGAR: Jammu and Kashmir students have availed education loans worth Rs 265.88 crore from public sector banks (PSBs) between 2022-23 and 2024-25, according to the Ministry of Finance’s reply in the Rajya Sabha on Tuesday. The figures, provided by the Reserve Bank of India (RBI), highlight the scale of formal bank lending for higher studies in the Union Territory, even as no state-specific data is available for defaults. The loans have helped students from the region fund studies both within India and abroad, though repayment pressure remains a challenge nationwide, with several banks reporting rising non-performing assets (NPAs) on education loans.
In neighbouring Ladakh, PSBs disbursed a substantial Rs 2,784.27 crore in student loans over the same three-year period, a figure that stands out sharply given the Union Territory’s small population base. While year-wise breakup for Ladakh has not been provided in the reply, the aggregate figure indicates that institutional lending for education has become a significant financial avenue for students there, especially those pursuing technical and professional degrees outside the region.
Nationwide, the State Bank of India topped the list of public sector lenders, disbursing Rs 32,311.02 crore in education loans over three years, followed by Union Bank of India at Rs 14,558.77 crore and Bank of Baroda at Rs 8,468.53 crore. Kerala emerged as the single largest recipient among states, with students receiving Rs 8,937.78 crore in loans, followed by Andhra Pradesh with Rs 8,101.06 crore and Tamil Nadu with Rs 7,198.63 crore. These figures show that southern states dominate in total disbursals, reflecting a strong demand for higher education financing.
On the repayment front, the data reveals that the burden of overdue student loans is unevenly spread across banks. For instance, Indian Overseas Bank reported gross NPAs of Rs 944 crore in March 2023, which dropped to Rs 123 crore provisionally by March 2025, while Canara Bank’s NPAs fell from Rs 843 crore to Rs 322 crore in the same period. Punjab and Sind Bank consistently reported the lowest NPAs, in single digits, suggesting either smaller lending volumes or stricter eligibility criteria.
The Finance Ministry’s reply also notes that RBI does not maintain state-wise data on education loan defaults, meaning the specific impact on students in Jammu and Kashmir or Ladakh cannot be assessed in detail. However, the aggregate trends point to a growing reliance on bank finance for higher education across India, coupled with the challenge of repayment once the moratorium period ends.
