New Delhi, Aug 12 Public sector banks have pumped in massive funds to support higher education in India over the past three years, with State Bank of India (SBI) emerging as the undisputed leader in disbursals and Maharashtra topping the state-wise charts.
According to data presented in the Rajya Sabha by Minister of State for Finance Pankaj Chaudhary, SBI disbursed a whopping Rs 32,311 crore in education loans between FY 2022-23 and 2024-25, nearly three times higher than its nearest competitor, Union Bank of India, which sanctioned Rs 14,559 crore.
Bank of Baroda followed in third place with Rs 8,469 crore, trailed by Canara Bank at Rs 7,094 crore and Punjab National Bank at Rs 5,005 crore. In the state-wise tally, Maharashtra recorded the highest education loan disbursals, receiving Rs 11,426 crore during the period. Kerala stood second with Rs 8,938 crore, closely followed by Andhra Pradesh at Rs 8,101 crore. Tamil Nadu (Rs 7,199 crore) and Telangana (Rs 6,179 crore) rounded off the top five.
The data also revealed significant lending in Karnataka (Rs 5,721 crore), Uttar Pradesh (Rs 3,461 crore) and West Bengal (Rs 3,156 crore), reflecting strong demand for higher education financing across the country. On the flip side, smaller states and Union Territories saw minimal activity - Lakshadweep, for instance, received just Rs 0.17 crore, while Mizoram (Rs 9.93 crore) and Arunachal Pradesh (Rs 10.40 crore) also had negligible disbursals.
However, repayment challenges persist. SBI, despite its massive lending, reported Rs 336 crore in Gross NPAs on education loans as of March 2025 (provisional). The List also includes Punjab National Bank (Rs 431 crore), Canara Bank (Rs 322 crore), and Indian Bank (Rs 277 crore), amongst others.
The figures highlight both the growing reliance of Indian students on bank financing for higher education and the ongoing need to strengthen repayment mechanisms, particularly in states with high loan exposure.
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