Ahmedabad: Education loan disbursals in Gujarat rose 21% year-on-year to Rs 491 crore in the quarter ended June 30, even as visa restrictions and uncertainty in key destinations such as the US and Canada continue to weigh on overseas education plans.According to the latest State Level Bankers’ Committee (SLBC) Gujarat report, banks disbursed the amount through 8,601 education loan accounts during the quarter, compared to Rs 406 crore through 7,048 accounts in June 2025.Bankers and foreign education consultants, however, said the quarterly increase should not be viewed as a broad-based recovery in overseas education demand. They attributed the rise partly to loan disbursal cycles, including cases where sanctioned loans are released in stages based on admission and fee-payment schedules. The loans could also cover domestic education.Bankers said the trend also reflects the rising cost of graduate and postgraduate courses in India. At the same time, consultants said overseas education demand has not seen a significant recovery this year.
Education Loan SLBC
“Overall demand is still very low. Loans are being sanctioned with confirmed admissions, but disbursals are not necessarily taking place at the same time. Periodic disbursals could also explain the rise in the quarterly figures. Students often receive loans in stages based on their course and fee-payment schedules,” said Bhavin Thaker, an Ahmedabad-based foreign education consultant.US and Canada together account for roughly 40% of Gujarat students seeking foreign education, according to consultants. Changes in visa rules and delays in appointments have prompted many students to defer their plans or explore other destinations, he said.“Visa rules in both countries have changed significantly over the past 18 months, which has brought down the overall number of foreign education aspirants. In certain cases, students are opting for alternate destinations. Those who still continue with their choice of US and Canada are still awaiting visa appointments,” Thaker added.Germany has emerged as one of the destinations attracting greater interest from Gujarat students, while UK, other European countries, Australia, New Zealand and Southeast Asia are also being considered.“Students are increasingly applying to multiple destinations to keep their overseas education plans open,” said another foreign education consultant.
