When students make a beeline for Banks

While education loans are a minor play for state-owned banks, data shows they have been struggling with NPA levels as high as 10%.

After a covid lull, disbursal of education loans has begun to pick up. And private non-banking lenders are in the vanguard.

“Traditionally, only one in seven-eight education loan applications gets approved. NBFCs have limited distribution reach but banks have the reach. However, banks have not been able to innovate given the high NPAs, complexities and relatively small ticket sizes," says Credila co-founder Ajay Bohora, explaining why NBFCs have made deep inroads in this segment. He launched Credila with his brother Anil in 2006. It has now been acquired by HDFC. #AjayBohora #EducationLoan #NBFC #HDFCCredila #NPA #Student

Source : Livemint