Education Loans Disbursed by Public Sector Banks Reveals Geographical and Institutional Trends

Strategic Insights -

Maharashtra, Kerala, Andhra Pradesh, and Tamil Nadu have emerged as top states in the disbursal of education loans by public sector banks (PSBs) over the last three financial years between FY 2022-23 to 2024-25. According to the Reserve Bank of India (RBI) data, PSBs sanctioned a total of Rs 11,426.47 crore in Maharashtra, Rs 8,937.78 crore in Kerala, Rs 8,101.06 crore in Andhra Pradesh, and Rs 7,198.63 crore in Tamil Nadu. At the other end of the spectrum, states and UTs like Lakshadweep, Mizoram, Arunachal Pradesh, and Nagaland recorded the lowest education loan disbursals.

Key Takeaways:

  • Maharashtra was the top state in education loan disbursals with Rs 11,426.47 crore, followed by Kerala (Rs 8,937.78 crore), Andhra Pradesh (Rs 8,101.06 crore), and Tamil Nadu (Rs 7,198.63 crore).
  • Among public sector banks, State Bank of India (SBI) emerged as the largest lender, disbursing Rs 32,311.02 crore in student loans over the three-year period.
  • Union Bank of India (Rs 14,558.77 crore), Bank of Baroda (Rs 8,468.53 crore), Canara Bank (Rs 7,094.19 crore), and Punjab National Bank (Rs 5,004.71 crore) were the top five lenders.
  • States like Lakshadweep, Mizoram, Arunachal Pradesh, and Nagaland recorded the lowest education loan disbursals, with amounts as low as Rs 0.17 crore and Rs 9.93 crore.
  • Bank of India (Rs 1,952.94 crore), Central Bank of India (Rs 1,277.27 crore), and Indian Bank (Rs 2,974.78 crore) were other notable contributors.
  • Punjab and Sind Bank disbursed the least among PSBs, at Rs 542.42 crore.
  • Despite being the largest lender, SBI maintained relatively stable GNPAs at Rs 372 crore (2023), Rs 382 crore (2024), and Rs 336 crore (2025), a decline from previous years.
  • Indian Overseas Bank (Rs 944 crore), UCO Bank (Rs 97 crore), and Punjab and Sind Bank (Rs 13 crore) have significant GNPAs.

Statistics:

  • Education loan disbursals by state (FY 2022-23 to 2024-25):

+ Maharashtra: Rs 11,426.47 crore

+ Kerala: Rs 8,937.78 crore

+ Andhra Pradesh: Rs 8,101.06 crore

+ Tamil Nadu: Rs 7,198.63 crore

  • Top 5 public sector banks by education loan disbursals:

+ State Bank of India: Rs 32,311.02 crore

+ Union Bank of India: Rs 14,558.77 crore

+ Bank of Baroda: Rs 8,468.53 crore

+ Canara Bank: Rs 7,094.19 crore

+ Punjab National Bank: Rs 5,004.71 crore

  • Education loan disbursals by state (FY 2022-23 to 2024-25) shows the top and bottom 5 states:

+ Top 5: Maharashtra, Kerala, Andhra Pradesh, Tamil Nadu, and Telangana

+ Bottom 5: Lakshadweep, Mizoram, Arunachal Pradesh, Nagaland, and Manipur

  • Gross non-performing assets (GNPAs) in the education loan segment:

+ State Bank of India: Rs 372 crore (2023), Rs 382 crore (2024), Rs 336 crore (2025)

+ Union Bank of India: Rs 637 crore (2023), Rs 644 crore (2024), Rs 336 crore (2025)

Sources:

  • Reserve Bank of India (RBI) data presented in the Rajya Sabha on Tuesday
  • IE Online Media Services Pvt. Ltd. (2025) - distributed by Contify.com