Loans over ₹10 lakh accounted for a major chunk of education loans disbursed in Tamil Nadu for 2017-18, indicating that higher education has become expensive in recent years.
The State saw ₹1,800 crore worth of education loans disbursed, with the over-₹10 lakh category accounting for 71%, but supporting just 5,000 students, according to data from credit bureau CRIF High Mark.
According to the firm, 27% of the amount had been disbursed in Chennai while another 31% had been disbursed in five districts, including Tiruvallur, Kancheepuram and Coimbatore, in 2017-18. “The fee at premier education institutions has gone up, as a result ticket sizes are going up in recent years,” said Parijat Garg, vice-president, CRIF High Mark.
According to CRIF High Mark, with an education portfolio of ₹20,650 crore, Tamil Nadu accounts for 25% of the ₹82,600 crore disbursed as education loans in the country.
About 30% of education loan borrowers are from six districts – Chennai, Coimbatore, Tiruvallur, Kancheepuram, Madurai and Thanjavur, it added.
Available data showed that 76% of the loan portfolio in Tamil Nadu is for loans upto ₹4 lakh, which is categorised as priority sector lending.
In this category, the State has 12.38% loans outstanding for 91-360 days. Thanjavur and Salem have higher non-performing assets amongst the key districts in loans up to ₹4 lakh category, it added.
“Education loans of up to ₹4 lakh are showing higher levels of non-performing assets. The volumes are dropping in this segment, Bankers are perhaps more reluctant to lend to the segment,” Mr. Garg said.
