Education loan disbursals in Gujarat fell by 12% in the first quarter of FY26, as aspiring students deferred or altered their plans to study abroad amid visa hurdles and policy uncertainty in key markets.

According to the latest data from the State Level Bankers’ Committee (SLBC) – Gujarat, banks disbursed Rs 406 crore under education loans in the April–June quarter of the current fiscal, compared with Rs 466 crore in the same period last year.

Foreign education consultants said the decline was largely driven by a slowdown in students heading to the US and Canada, which together account for the majority of foreign education aspirants from Gujarat. “There is a 40% drop in the number of students going to both the US and Canada — the biggest markets for Indian students,” said Jayjit Nakarani, a foreign education consultant. “This is due to anti-immigration sentiment, lack of job opportunities, and uncertainty around policies. Visa availability was also a concern, with inquiries from students for these destinations nearly halved.”

The fall intake this year was particularly affected, said Bhavin Thaker, who runs a foreign education consultancy firm in Ahmedabad. “Many students who had confirmed their I-20s could not apply for visas because fresh appointments were abruptly halted. Overall sentiment among aspirants is weak, and this led to a substantial reduction in the number of students going abroad,” he said. Thaker added that students are either shifting to alternative destinations such as Australia, the UK, and European countries, or choosing to pursue higher studies in India.

Bankers said that since most of the demand for education loans comes from those planning to study abroad, disruptions in the US and Canadian markets had a direct impact on loan disbursals.

Box: Edu Loan Disbursals

Apr-Jun period 2024 2025 % Change

Disbursal (in Rs cr) 466 406 -12.87

Disbursal (Accounts) 7,385 7,048 -4.5

Source: SLBC – Gujarat