Crisil Forecasts Education Loan Growth to Halve for NBFCs

MUMBAI: In a recent analysis, Crisil has projected a significant slowdown in the growth of education loans provided by Non-Banking Financial Companies (NBFCs). The growth rate is expected to reduce by half compared to last year, primarily due to stricter immigration policies in the United States. These policies are making Indian students reconsider pursuing higher education abroad, which has been a key driver for education loans.

Impact on NBFCs: Education loans have been the fastest-growing asset class for NBFCs in recent years, with Assets Under Management (AUM) increasing by 50% annually. However, the current scenario suggests a challenging period ahead for the sector.

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