Banks continue to see drop in small study loans, but high-value ones rise

Experts also mentioned that the data suggests that the poorer sections of society could be borrowing less due to their weak ability to service loans

Education loans given out by banks have been on a steady decline for three years  now, shows the data by the Reserve Bank of India (RBI). The size of the education loan book of Indian commercial banks is nearly Rs 65,000 crore — about 0.3 per cent of gross domestic product.
 
While education loans outstanding were growing at a rate of 6-8 per cent till the end of 2016, the rate of growth started declining after December 2016 — a month after the demonetisation exercise was carried out. The decline has continued unabated, and at the end of November