Non-Banking Financial Companies (NBFCs) providing education loans are projected to grow their portfolios by 20% in FY27. This growth persists despite a slowdown in US admissions, as Indian students choose alternative global destinations.
₹94,000 crore
Projected outstanding education loan book
Previous year's loan book: ₹78,000 crore→₹94,000 crore
⏳ Time Machine
How today’s news fits into the bigger picture
10 years ago
Around 2016, getting a study-abroad loan of over fifty lakh rupees required extensive physical property collateral and weeks of bureaucratic bank visits.
Last year
The education loan book of major specialty NBFCs stood at approximately ₹78,000 crore, experiencing steady growth.
Last month
Financial planners advised families to hedge foreign education costs as currency fluctuations impacted student tuition fees.
Yesterday
Shadow banks reported steady asset quality in their education loan divisions, outperforming general retail credit.
Today
Crisil published its study projecting NBFC education loans to surge 20% to ₹94,000 crore by FY27 despite a US slowdown.
What happens next?
By late 2027, specialized lenders are expected to raise fresh international bond funding to fuel their expanding global student loan portfolios.
Despite a cooling job market and stricter visa rules in the United States, the hunger for studying abroad among young Indians remains insatiable. A report by rating agency Crisil on Tuesday, July 14, 2026, projects that the education loan portfolios of Non-Banking Financial Companies (NBFCs)—shadow banks—will expand by a massive 20% in the current fiscal year, reaching a record ₹94,000 crore. How is this possible when US demand is slowing down? Indian students are rapidly diversifying their destinations, flocking to universities in Germany, Canada, Australia, and the UK instead. NBFCs have adapted quickly by offering tailored, fast-disbursing loans for these alternative countries. This credit boom highlights the rising aspirational wealth of India's middle class, who view global education as a critical investment.
💭 If you're wondering…
NBFCs do not have access to cheap public deposits like banks do; they must borrow their lending capital from the market at higher costs. However, they compensate for higher rates by offering much faster, flexible, and customized loan approvals.
Did this story help?
Official sources
Knowledge Chain — tap a concept