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As on : 16-Dec-2025

Economy - Reports
16-Dec-2025 10:37

Gross NPAs in outstanding education loans of PSBs see sharp fall in recent years

Ministry of Finance has stated in a latest update that according to Reserve Bank of India (RBI), in terms of outstanding education loans, the Gross Non-Performing Assets (NPA) of Public Sector Banks (PSBs) reduced from 7% in FY 2020-21 to 2% in FY 2024-25, thereby showing the significant improvement in asset quality of education loans over the years. Credit related matters of regulated entities (REs) are largely deregulated and the same are governed by the Board approved loan policies of the REs framed under the ambit of relevant regulatory and statutory requirements and terms and conditions of the loan agreement between the borrower and the RE. RBI has advised the banks to put in place a Board approved loan policy and they shall take credit related decisions as per the said policy, subject to the guiding principles of regulations.

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