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For NBFCs, education loan AUM growth to halve amid US headwinds: Crisil

  • Education loan AUM growth for NBFCs is expected to halve this fiscal as disbursements for pursuing educational courses in the US slow down due to policy changes.
  • NBFCs are diversifying into new geographies and product adjacencies to mitigate the impact of the slowdown in the US education loan market.
  • Despite stable non-performing assets (NPAs) so far, asset quality of NBFCs will be monitored closely due to global uncertainties and a large proportion of assets under contractual principal moratorium.
  • The share of education loan disbursements for courses in countries like the UK, Germany, and Ireland has increased, but it will not fully offset the decline in US-linked disbursements.

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