Archive · 11 Dec 2025
Parliamentary Panel Flags Decline In Education Loans
A group in the Indian government called the Parliamentary Standing Committee noticed that it's getting harder for students to get loans for their education, even though studying at universities is becoming more expensive.
They found out that many students, especially those from poor or rural areas, don't know about the government's loan schemes.
The committee also discovered that most loans are given in states like Tamil Nadu, Kerala, and Maharashtra, while students in the north and rural areas are left behind.
They want the government to make it easier for students to get loans, especially those who are very poor, and to do more to tell everyone about these loan schemes.
Without these changes, they worry that students who need help the most might not be able to go to college.
Access to education loans has declined while higher education costs have risen, according to a Parliamentary Panel.
Most students from disadvantaged and rural backgrounds are unaware of government education loan schemes.
Loan disbursal is skewed towards states like Tamil Nadu, Kerala, and Maharashtra, with northern and rural regions lagging behind.
Between 2014 and 2025, the number of active student loans fell from 23.36 lakh to 20.63 lakh, but the total credit amount increased from Rs 52,327 crore to Rs 1,37,474 crore.
The panel recommended reforms like simplified paperwork, no-collateral rules for eligible students, interest subsidies, and special awareness drives in underserved regions.
- Who
- Parliamentary Standing Committee on Education, Women, Children, Youth and Sports
- What
- Declining access to education loans amid rising higher education costs
- When
- Report tabled in Rajya Sabha; data from 2014 to 2025
- Where
- India, with focus on northern and rural regions
- Why
- To address inequity in access to higher education
- Committee Head
- Congress MP Digvijaya Singh
- Active Student Loans (2014)
- 23.36 lakh
- Active Student Loans (2025)
- 20.63 lakh
- Total Credit Amount (2014)
- Rs 52,327 crore
- Total Credit Amount (2025)
- Rs 1,37,474 crore
- PM Vidyalaxmi Applications (Feb-Aug 2025)
- 55,887
- PM Vidyalaxmi Sanctioned Amount (Feb-Aug 2025)
- Rs 4,427 crore
- PM Vidyalaxmi Loans Sanctioned (Feb-Aug 2025)
- 30,442
- PM Vidyalaxmi Loans Disbursed (Feb-Aug 2025)
- 21,967
- PM Vidyalaxmi Money Disbursed (Feb-Aug 2025)
- Rs 688.27 crore